Innovation capabilities and international performance of firms: a quantile regression approach

Abstract

This study examines the relationship between various dimensions of a firm’s technological innovation capabilities and its international performance. We use panel data with multiple indicators of firm level technological capabilities including generation, dissemination, strength and speed of innovation. We employ a quantile regression analysis which allowed us to test the impact of innovation capability on international performance of high, average and poor performers. Our empirical findings indicate significant disparity between the ordinary least square and quantile regression results.