IDEAS home Printed from https://ideas.repec.org/p/stp/stepre/1997r01.html
   My bibliography  Save this paper

Innovation, firm profitability and growth

Author

Abstract

This study explores relationships between innovative activity, profitability and firm growth in Norwegian industry. It is based on a dataset which merges information from the Norwegian Innovation Survey (that is, the Norwegian component of the Community Innovation Survey 1992) with accounting data for a panel of firms for the period 1990 (91) to 1994. This allows us to look at profitability and growth over time in firms engaged in innovative activity in the year 1992, or in firms that introduced new products in the period 1990-92. It also allows for comparisons with firms not involved with innovation in this period. Finally, we can investigate whether profitability in the year preceding our registration of innovative activity seems to have had any effect on the occurrence or level of innovation. In doing this, we address a central issue in innovation studies, namely the effects of innovation on firm performance. Does it pay off to become involved in innovative activity? What forms do the benefits of innovation take - does innovation enhance short-run profitability, or does it contribute to firm growth, or both or neither?

Suggested Citation

  • Svein Olav Nås & Ari Leppãlahti, "undated". "Innovation, firm profitability and growth," STEP Report series 199701, The STEP Group, Studies in technology, innovation and economic policy.
    • Handle: RePEc:stp:stepre:1997r01
    as

    Download full text from publisher

    File URL: http://www.step.no/reports/Y1997/0197.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Paul Geroski, 1995. "Innovation and Competitive Advantage," OECD Economics Department Working Papers 159, OECD Publishing.
    2. Paul Geroski & Steve Machin & John Van Reenen, 1993. "The Profitability of Innovating Firms," RAND Journal of Economics, The RAND Corporation, vol. 24(2), pages 198-211, Summer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Šarlija, Nataša & Bilandžić, Ana, 2018. "Does Innovation Matter for SMEs' growth in Croatia?," 6th International OFEL Conference on Governance, Management and Entrepreneurship. New Business Models and Institutional Entrepreneurs: Leading Disruptive Change (Dubrovnik, 2018), in: 6th International OFEL Conference on Governance, Management and Entrepreneurship. New Business Models and Institutional Entrepreneurs: Leading Disrupt, pages 356-375, Governance Research and Development Centre (CIRU), Zagreb.
    2. Arnab Adhikari & Samit Paul, 2018. "An Analytical Modelling Approach for Assessing the Impact of Competition on a Homogenous Product Firm’s Investment Decision in Innovation," Global Business Review, International Management Institute, vol. 19(3_suppl), pages 39-53, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Katarzyna Prędkiewicz & Paweł Prędkiewicz, 2014. "The Patents and Financial Performance of Firms - Evidence From Polish Manufacturing Companies," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 10(4), pages 115-141.
    2. Panayotis Dessyllas & Alan Hughes, 2005. "R&D and Patenting Activity and the Propensity to Acquire in High Technology Industries," Industrial Organization 0507008, University Library of Munich, Germany.
    3. Crass, Dirk & Garcia Valero, Francisco & Pitton, Francesco & Rammer, Christian, 2016. "Protecting innovation through patents and trade secrets: Determinants and performance impacts for firms with a single innovation," ZEW Discussion Papers 16-061, ZEW - Leibniz Centre for European Economic Research.
    4. Sheikh, Shahbaz, 2018. "The impact of market competition on the relation between CEO power and firm innovation," Journal of Multinational Financial Management, Elsevier, vol. 44(C), pages 36-50.
    5. Enrique López-Bazo & Elisabet Motellón, 2016. "“Innovation, heterogeneous firms, and the region”," AQR Working Papers 201607, University of Barcelona, Regional Quantitative Analysis Group, revised Apr 2016.
    6. Martin Andersson & Hans Lööf, 2009. "Learning‐by‐Exporting Revisited: The Role of Intensity and Persistence," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(4), pages 893-916, December.
    7. Eleonora Bartoloni & Maurizio Baussola, 2016. "Does technological innovation undertaken alone have a real pivotal role? Product and marketing innovation in manufacturing firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 25(2), pages 91-113, March.
    8. Andrea Vaona, 2010. "On the gravitation and convergence of industry profit rates in Denmark, Finland, Italy and the US," Working Papers 02/2010, University of Verona, Department of Economics.
    9. Tammy L. Madsen & Michael J. Leiblein, 2015. "What Factors Affect the Persistence of an Innovation Advantage?," Journal of Management Studies, Wiley Blackwell, vol. 52(8), pages 1097-1127, December.
    10. Cheng-Wen Lee & Hsiao Chuan Chen & Choong Leng Peng & Shu Hui Chen, 2023. "Sustainability of Taiwanese SME Family Businesses in the Succession Decision-Making Agenda," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    11. Cappelli, Riccardo & Czarnitzki, Dirk & Kraft, Kornelius, 2014. "Sources of spillovers for imitation and innovation," Research Policy, Elsevier, vol. 43(1), pages 115-120.
    12. Lukáš Procházka, 2010. "R&D programmes as a support tool for innovation activities of SMEs in the Czech Republic," Acta Universitatis Bohemiae Meridionales, University of South Bohemia in Ceske Budejovice, vol. 13(3), pages 25-30.
    13. Ida D'Attoma & Silvia Pacei, 2018. "Evaluating the Effects of Product Innovation on the Performance of European Firms by Using the Generalised Propensity Score," German Economic Review, Verein für Socialpolitik, vol. 19(1), pages 94-112, February.
    14. Kaiser, Ulrich, 2009. "Patents and profit rates," Economics Letters, Elsevier, vol. 104(2), pages 79-80, August.
    15. Joshua Gans & Scott Stern, 2003. "When does funding research by smaller firms bear fruit?: Evidence from the SBIR program," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(4), pages 361-384.
    16. Leiponen, Aija, 2002. "Competencies and Firm Performance - Increasing Returns from Knowledge Complementaries?," Discussion Papers 703, The Research Institute of the Finnish Economy.
    17. He Lu Calvin Ong & Senthu Jeyaraj, 2014. "Work–Life Interventions," SAGE Open, , vol. 4(3), pages 21582440145, July.
    18. Love, James H. & Roper, Stephen & Du, Jun, 2009. "Innovation, ownership and profitability," International Journal of Industrial Organization, Elsevier, vol. 27(3), pages 424-434, May.
    19. Valle, Sandra & García, Francisco & Avella, Lucía, 2015. "Offshoring Intermediate Manufacturing: Boost or Hindrance to Firm Innovation?," Journal of International Management, Elsevier, vol. 21(2), pages 117-134.
    20. G Cameron, 1996. "Innovation and Economic Growth," CEP Discussion Papers dp0277, Centre for Economic Performance, LSE.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:stp:stepre:1997r01. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Nils Henrik Solum (email available below). General contact details of provider: https://edirc.repec.org/data/steppno.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.