Innovation Activities and Financial Performance: The Case of Kosovo
8 Pages Posted: 19 Nov 2018 Last revised: 30 Jan 2020
Date Written: September 6, 2018
This research aims at investigating the impact of innovation activities and its determinants on firm performance. The World Bank and the European Bank for Reconstruction and Development (EBRD) have conducted Business Environment Enterprise Performance Surveys (BEEPS) firm-level data in 2013-2014, which will be employed for the empirical analysis of the study. In order to investigate the determinants of firm performance, we apply multiple regression analysis and descriptive statistics on 202 companies from Kosovo. Moreover, empirical evidence results of neighbouring countries were compared to our findings for each determinant and its effect on firm performance. By investigating the innovation performance relationship, we found sufficient evidence that supports the main hypothesis. As for the innovation determinants our results indicate that factors as domestic ownership, age, and training affect the tendency of firms to innovate, thus positively affecting firm performance.
Keywords: innovation activities, firm performance, ownership structure, training
JEL Classification: O31, L25, G32, M53
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