Innovation and the Growth of Service Firms: The Polish Case

20 Pages Posted: 11 Jun 2013

See all articles by Krzysztof Szczygielski

Krzysztof Szczygielski

CASE - Center for Social and Economic Research

Wojciech Grabowski

University of Lodz

Richard Woodward

Centre for Social and Economic Research (CASE); University of Edinburgh - Business School

Date Written: 2013

Abstract

Differences in the growth of firms remain a major topic in economics and strategy research.

In this paper we investigated the link between innovation performance and employment growth. First we discuss the problem from the theoretical point of view and then we analyze the relationship between innovation performance and the dynamics of employment in the Polish service firms in 2004-2009. Firms that introduced new services or marketing techniques experienced stronger growth. Process innovations contributed to employment reduction. Tellingly, this effect could only be observed in 2008-2009, a subperiod which saw the lowest levels of aggregate demand. This conclusion yields support to the presumption formulated by Pianta (2005) that the impact of innovation on employment growth depends on the macroeconomic situation.

Keywords: Poland, services, innovation, firm growth, quantile regression

JEL Classification: D22, L25, L80, O33

Suggested Citation

Szczygielski, Krzysztof and Grabowski, Wojciech and Woodward, Richard, Innovation and the Growth of Service Firms: The Polish Case (2013). CASE Network Studies and Analyses No. 453, Available at SSRN: https://ssrn.com/abstract=2277532 or http://dx.doi.org/10.2139/ssrn.2277532

Krzysztof Szczygielski (Contact Author)

CASE - Center for Social and Economic Research ( email )

Al. Jana Pawła II 61/212
Warsaw, 01-031
Poland

Wojciech Grabowski

University of Lodz ( email )

Ulica Prezydenta Gabriela
Narutowicza 65 str.
Lodz, 90-131
Poland

Richard Woodward

Centre for Social and Economic Research (CASE) ( email )

Al. Jana Pawła II 61/212
00-944 Warsaw, 01-031
Poland

University of Edinburgh - Business School

University of Edinburgh
29 Buccleuch Place
Edinburgh, Scotland EH8 9JS
United Kingdom

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