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Determinants Of Innovation Capacity: Empirical Evidence From Services Firms

Maria Jose Madeira Silva, Jorge Simões, G. Sousa, J. Moreira, Emerson Wagner Mainardes
Published 2014 · Economics

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Abstract This research aims to analyze the degree of importance of investment and expenditure on innovation activities for innovation capacity, in the scope of Portuguese services firms. The literature review considers three main approaches regarding service innovation: Assimilation, demarcation and synthesis. A conceptual model was proposed and several research hypotheses were empirically tested using secondary data, belonging to the 4th CIS 4, supervised by EUROSTAT. A data set from 1306 services firms was studied. The method used was 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.
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