The Innovation-Sales Growth Nexus in Europe

Abstract

In this article we investigate the innovation-sales growth nexus in Europe. We use data from European Innovation Scoreboard of the European Commission in the period 2000-2019 for 36 countries. Data are analyzed using Panel Data with Random Effects, Fixed Effects, Dynamic Panel at 1 Stage, Pooled OLS, WLS. Results show that the impact of innovation on sales in Europe is positively associated with "Share Knowledge-Intensive Services", "Turnover of Share Large Enterprises", "Employment Impacts", "Innovators", "Intellectual Assets", "Linkages" and is negatively associated with "Enterprise Births", "Government Procurement of Advanced Technology Products", "Share of Employment in High and Medium high-tech Manufacturing".

The Export of Medium and High-Tech Products Manufactured in Europe

“…In fact, we remind you that there is a significant positive relationship between the ability to innovate, the ability to do research and development, and the production capacity and ability of the company to export. Therefore, if a country innovates significantly then the chances of increasing productivity and exports also increase [17]. • Employment Share High and Medium high-tech manufacturing: it is a variable that considers the employment generated by medium and high technology products on the total general employment.…”

“…Obviously the most innovative companies, which are growing more, also have more employees and are essentially export-oriented. Therefore innovativeness, employment, productivity, competitiveness, and export are related factors [24]. • Foreign doctorate students: is the percentage of foreign doctorates out of the total number of doctorates.…”

The Exports of Knowledge Intensive Services. A Complex Metric Approach

“…In this sense, it is necessary to ensure that even the economies of the less developed areas of Europe, i.e. the economy of Southern and Eastern Europe, are able to orient themselves more and more effectively towards the knowledge economy by orienting themselves towards the export of services [19]. • Foreign-controlled enterprises -share of value added: is the percentage of enterprises that are controlled from abroad.…”

“…This positive relationship derives from the fact that if companies have a greater chance of implementing technological innovation processes, then they also have a greater chance of obtaining a more positive impact in terms of sales. It follows therefore that technological innovation is not only a tool through which it is possible to make investments capable of increasing productivity, but rather it is a tool that allows companies to significantly orientate the export of products thanks to the increase in cognitive content [22].…”

The Exports of Knowledge Intensive Services: A Complex Metric Approach

“…In this sense, it is necessary to ensure that even the economies of the less developed areas of Europe, i.e. the economy of Southern and Eastern Europe, are able to orient themselves more and more effectively towards the knowledge economy by orienting themselves towards the export of services [19].…”