ISSN:
1573-6911
Keywords:
Innovation
;
profitability
;
firm growth
;
L10
;
O31
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract Recent debates about Industrial Policy are dominated by a concern to make firms “more innovative”. In order to make progress in assessing the magnitude of the effects of innovation on corporate performance, one needs to know how such effects occur. We have contrasted two views of the effect of innovation—“the product view” and “the process view”—and have provided some evidence to suggest that both effects are evident in the data. Although it is clear that individual innovations themselves have a positive effect on profitability and growth, it is equally clear that the process of innovation seems to transform firms in some way that gives rise to what look like generic differences between innovators and non-innovators. As a consequence, the process by which profitability and growth are generated differs noticeably between the two types of firms. Perhaps the clearest of these differences is that innovating firms seem to be much less sensitive to cyclical shocks than non-innovating firms are.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/BF01384139
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