Investment and Expenditure on Innovation Activities and Innovative Capability: Empirical Evidence from Portuguese Services Firms and KIBS

Abstract

This research aims to analyze the degree of importance of investment and expenditure on innovation activities for entrepreneurial innovative capability, in the scope of Portuguese services firms and the firms belonging to the KIBS -knowledge-intensive business services. A conceptual model was proposed and several research hypotheses were empirically tested using secondary data, belonging to the 5th CIS 2006, supervised by EUROSTAT. A data set from 829 KIBS firms was studied. The method used will be the logistic regression model. According to the results obtained, the greater the financial investment in acquisition of machinery, equipment and software, in internal research and development, in acquisition of external knowledge, in marketing activities and other procedures, the greater the propensity for firms to innovate in terms of services. This study highlights the contributions that innovation activities can provide in what regards the development of innovation process, giving special emphasis to their service innovation.www.ccsenet.org/ibr

Does Internal and External Research and Development Affect Innovation of Small and Medium-Sized Enterprises? Evidence from India and Pakistan

“…Thus, firms' decision to spend on machinery, equipment, licensing, and software generate innovation (Table 2). This result is similar to that of Silva et al (2012). The coefficient of age shows a negative association to product innovation.…”

“…The major independent variables of interest of this study are internal and external R&D. Two additional innovation input variables that are used are internal technology acquisition (investment in machinery, equipment, and software) and external technology acquisition (patents and licenses), which generally have a significant impact on firms' innovation performance (Silva et al 2012;Crespi and Zuniga 2012). The other independent variables relate to firms' financial resources measured as internal funds, external bank finance, and public support (R&D subsidies and tax incentives).…”

The relationship between innovation capability and performance

“…Lawson and Samson (2001) define innovation capability in closer detail as "the ability to continuously transform knowledge and ideas into new products, processes and systems for the benefit of the firm and its stakeholders." In addition, innovation capability varies from firm to firm and is determined by multiple factors (Silva et al, 2012).…”

Orientasi kewirausahaan dan kemampuan berinovasi

“…Dan kemampuan inovasi adalah penentu paling penting untuk mencapai kinerja inovasi yang unggul, yang memberikan potensi efektif untuk kinerja inovasi (Cavusgil, Calantone, & Zhao, 2003). Kemampuan inovasi bervariasi dari perusahaan ke perusahaan dan ditentukan oleh banyak factor (Silva, Simoes, Moreira, & Sousa, 2012).…”