“…In general terms, the positive relationship between innovation and performance has been widely shown (Naranjo-Gil, 2009;Bayona-Sáez and García-Marco, 2010;Yam et al, 2011;Trigo and Vence, 2012), due to the higher probability of survival (Hall and Williams, 2008), higher competitive edge gained (Victorino et al, 2005), the differentiation reached (Walsh et al, 2008) and cost reductions attained (Chan et al, 1998). This positive relationship between innovation and performance has been found by using different indicators of firms' innovation capabilities, such as R&D (Toivanen et al, 2002;Eberhart et al, 2004;Hall and Oriani, 2006) or new products (Angelmar, 1990;Chaney and Devinney, 1992;Geroski et al, 1993;Srinavasan et al, 2009).…”