f innovation on firms’ economic performance pinpointing complementarities between product and marketing innovation during the period 1998-2008. Firms’ profitability and productivity are simultaneously estimated, thus allowing for consistent and robust estimates of the relationship being tested. The conceptual framework in which we have developed the analysis bridges the gap between the management (organization) approach, from which we grasp the notion of a firm’s market orientation to innovation, and the economics of innovation perspective. The results show that being a persistent product-innovating and marketoriented firm significantly affects profitability, although the estimated impact is relatively mild. The gain in productivity determined by investing in R&D is relatively small and in line with the corresponding gain attributable to investing in marketing and organizational innovations. Conversely, capital deepening— as measured by the capital-labor ratio—exerts a larger impact on productivity, thus underlining how knowledge capital plays a less relevant role. This result emphasizes a crucial weakness of Italian manufacturing firms, because knowledge investment is the key to future economic growth. The estimates we have presented cover a sufficiently long time interval, thus enabling us to perform different robustness tests.

Baussola, M. L., Bartoloni, E., Persistent Product Innovation and Market-oriented Behaviour:the Impact on Firms'Performance, <<QUADERNO N.105 - DIPARTIMENTO DI SCIENZE ECONOMICHE E SOCIALI>>, 2015; N.105 (Marzo): 3-47 [http://hdl.handle.net/10807/66510]

Persistent Product Innovation and Market-oriented Behaviour:the Impact on Firms'Performance

Baussola, Maurizio Luigi;Bartoloni, Eleonora
2015

Abstract

f innovation on firms’ economic performance pinpointing complementarities between product and marketing innovation during the period 1998-2008. Firms’ profitability and productivity are simultaneously estimated, thus allowing for consistent and robust estimates of the relationship being tested. The conceptual framework in which we have developed the analysis bridges the gap between the management (organization) approach, from which we grasp the notion of a firm’s market orientation to innovation, and the economics of innovation perspective. The results show that being a persistent product-innovating and marketoriented firm significantly affects profitability, although the estimated impact is relatively mild. The gain in productivity determined by investing in R&D is relatively small and in line with the corresponding gain attributable to investing in marketing and organizational innovations. Conversely, capital deepening— as measured by the capital-labor ratio—exerts a larger impact on productivity, thus underlining how knowledge capital plays a less relevant role. This result emphasizes a crucial weakness of Italian manufacturing firms, because knowledge investment is the key to future economic growth. The estimates we have presented cover a sufficiently long time interval, thus enabling us to perform different robustness tests.
Inglese
QUADERNO N.105 - DIPARTIMENTO DI SCIENZE ECONOMICHE E SOCIALI
978-88-343-2983-2
Vita e Pensiero
Baussola, M. L., Bartoloni, E., Persistent Product Innovation and Market-oriented Behaviour:the Impact on Firms'Performance, <<QUADERNO N.105 - DIPARTIMENTO DI SCIENZE ECONOMICHE E SOCIALI>>, 2015; N.105 (Marzo): 3-47 [http://hdl.handle.net/10807/66510]
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/10807/66510
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