Innovation and Corporate Performance in the Spanish Regions
Journal of Policy Modeling, vol. 40, núm. 5, págs. 998-1021. I.S.S.N.: 0161-8938, 2018
Posted: 18 Jun 2019
Date Written: 2018
This paper analyzes the relationship between corporate performance and innovative effort for a set ofSpanish companies during the 2007–2013 period. For this purpose, we use a panel data model. We findevidence that the return on equity (ROE) and, in particular, sales revenues are positively influenced bycorporate innovation. Moreover, we also find evidence that this positive relationship is stronger in largecompanies. The analysis regarding the age of the company indicates that, in start-ups or younger companies,innovation effort has a greater effect on corporate performance than in older companies.
Keywords: Innovation, Corporate performance, SME, ROE, Sales revenues
JEL Classification: G30, M13, L25, O32
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