Abstract
This paper explores the two-way relationship between innovation and economic performance in services using a longitudinal firm-level dataset which matches data from the second Community Innovation Survey, CIS II (1993–95), against a set of economic variables provided by the System of Enterprise Accounts (1993–98). The results presented show that innovation is positively affected by past economic performance and that innovation activities (especially investments in ICTs) have a positive impact on both growth and productivity. Furthermore, productivity and innovation act as a self-reinforcing mechanism, which further boosts economic performance. These findings provide empirical support for the endogenous nature of innovation in services and the presence in this sector of competition models and selection mechanisms based on innovation.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
