Spillovers in product and process innovation: evidence from manufacturing firms

This paper proposes a new empirical approach to assess the impact of knowledge spillovers on firms' productivity and demand. I consider a model where process innovations spillovers to other firms raise firms relative efficiency and technological diffusion of product innovations enhances firms' demand. By modelling knowledge capital as a function of own investment in R\ and D and spillovers, I can compare the impact of these two complementary sources of knowledge on both the supply and the demand side. The results obtained confirm the findings already highlighted by previous empirical studies that technological externalities affect significantly firms' productivity growth. The new result obtained is that technological diffusion of product innovations is larger than the one deriving from process innovations, both in magnitude and pervasiveness

Product and process innovation and the decision to export.

Using data from the Community Innovation Survey for Belgium in two consecutive periods, this paper explores the relationship between firm-level innovation activities and the propensity to start exporting. To measure innovation, we include indicators of both innovative effort (R&D activities) as well as innovative output (product and process innovation). Our results suggest that the combination of product and process innovation, rather than either of the two in isolation, increases a firm’s probability to enter the export market. After controlling for potential endogeneity of the innovation activities, only firms with a sufficiently high probability to start exporting engage in product and process innovation prior to their entry on the export market, pointing to the importance of self-selection into innovation.Exports; Process innovation; Product innovation; Self-selection;

Spillovers in product and process innovation: evidence from manufacturing firms.

This paper proposes a new empirical approach to assess the impact of knowledge spillovers on firms' productivity and demand. I consider a model where process innovations spillovers to other firms raise firms relative efficiency and technological diffusion of product innovations enhances firms' demand. By modelling knowledge capital as a function of own investment in R\ and D and spillovers, I can compare the impact of these two complementary sources of knowledge on both the supply and the demand side. The results obtained confirm the findings already highlighted by previous empirical studies that technological externalities affect significantly firms' productivity growth. The new result obtained is that technological diffusion of product innovations is larger than the one deriving from process innovations, both in magnitude and pervasiveness.

The Dynamics of Product and Process Innovation in UK Banking

Sustained competitive advantage depends heavily on the ability of organisations to internalise the benefits of innovative activities. While the vital importance of innovation in today’s competitive climate has been widely proclaimed, our understanding of innovative behaviour in service organisations is not yet fully developed. This article documents an interpretative approach (based on archival research and semi- structured interviews) of the main drivers of change in organisational function (process) and access to financial markets (service or product) in UK commercial banking. As a result, research in this article contributes the understanding of innovation in service organisations by exploring past and present perceptions of banks' senior managers and management consultants on the importance and factors stimulating and constraining the adoption of new technology in financial intermediaries.banks, innovation

SPILLOVERS IN PRODUCT AND PROCESS INNOVATION: EVIDENCE FROM MANUFACTURING FIRMS

This paper proposes a new empirical approach to assess the impact of knowledge spillovers on firms' productivity and demand. I consider a model where process innovations spillovers to other firms raise firms relative efficiency and technological diffusion of product innovations enhances firms' demand. By modelling knowledge capital as a function of own investment in R\&D and spillovers, I can compare the impact of these two complementary sources of knowledge on both the supply and the demand side. The results obtained confirm the findings already highlighted by previous empirical studies that technological externalities affect significantly firms' productivity growth. The new result obtained is that technological diffusion of product innovations is larger than the one deriving from process innovations, both in magnitude and pervasiveness.

Product and process innovation and the decision to export : firm-level evidence for Belgium

Using data from the Community Innovation Survey for Belgium in two consecutive periods, this paper explores the relationship between firm-level innovation activities and the propensity to start exporting. To measure innovation, we include indicators of both innovative effort (R&D activities) as well as innovative output (product and process innovation). Our results suggest that the combination of product and process innovation, rather than either of the two in isolation, increases a firm’s probability to enter the export market. After controlling for potential endogeneity of the innovation activities, only firms with a sufficiently high probability to start exporting engage in product and process innovation prior to their entry on the export market, pointing to the importance of self-selection into innovationexports, product innovation, process innovation, self-selection, firm heterogeneity

Product and Process Innovation and the decision to Export: Firm-level evidence for Belgium

Using data from the Community Innovation Survey for Belgium in two consecutive periods, this paper explores the relationship between firm-level innovation activities and the propensity to start exporting. To measure innovation, we include indicators of both innovative effort (R&D activities) as well as innovative output (product and process innovation). Our results suggest that the combination of product and process innovation, rather than either of the two in isolation, increases a firm’s probability to enter the export market. After controlling for potential endogeneity of the innovation activities, only firms with a sufficiently high probability to start exporting engage in product and process innovation prior to their entry on the export market, pointing to the importance of self-selection into innovation.Exports, Product innovation, Process innovation, Self-selection, Firm heterogeneity

Effects of institutional support on innovation and performance: roles of dysfunctional competition

Purpose: The purpose of this paper is to empirically investigate the effects of institutional support on product and process innovation and firm performance and describe how dysfunctional competition influences relevant outcomes. Design/methodology/approach: This study develops a research model based on institution-based view and tests it using structural equation modeling and empirical data collected from 300 manufacturers in China. Findings: The results show that institutional support positively affects product and process innovation and firm performance. Both product and process innovation improve firm performance. The findings reveal that dysfunctional competition significantly reduces the positive effects of institutional support on product and process innovation but leaves the effects of institutional support and product and process innovation on firm performance unaffected. Originality/value: This study contributes to innovation literature by providing insights into the impact of China’s institutional environment on manufacturing firms’ product and process innovation decisions. The findings also contribute to institution-based view literature by providing empirical evidence on the joint effects of institutional support and dysfunctional competition on product and process innovation and firm performance. This study can help manufacturers in China take advantage of institutional environment and adjust product and process innovation decisions accordingly