Table 6 - uploaded by Dario Guarascio
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In this work we test if persistent innovators, defined according to different innovation
activities (R&D, product and process innovation, patenting) grow more than other firms,
and if innovation persistence can contribute to explain the so far little evidence in favor
of persistence in growth itself. We exploit a somewhat uniquely long-in-time data...
Context in source publication
Context 1
... we use R&D to measure persistence (in Table 5), persistent innovators display a negative growth premium along almost the entire distribution of growth rates, and specifically from the third to the ninth decile. Conversely, in the case of product innovation (in Table 6), we do not find any significant difference across persistent innovators and other firms, in all the quantiles. For persistent process innovators (in Table 7), a negative growth premium is found in the top of the growth rates distribution, and no significant effects along the rest of the support. ...
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Citations
... Continuous innovation is a crucial factor for the sustainable development of enterprises (Guarascio & Tamagni, 2019). More critically than ever, they must manage to master the market demand and key business technologies in order to expand their competitive advantages (Chen & Wu, 2021). ...
... There is still controversy on how to measure environmental regulation in literature. The main alternative indicators include environmental regulation policy [30], emissions of different pollutants [31], emission density of different pollutants [32], per capita income level [33], proportion of investment in pollution control in industrial output [34], and resource consumption. The incompleteness of a single measurement index may lead to deviation of results. ...
Based on provincial dynamic panel data from 2010 to 2019, this paper constructs a panel threshold model and explores the nonlinear relationship between environmental regulation and economic growth through channels of technological innovation. In addition, a spatial panel Durbin model is constructed to test the spatial spillover effects of environmental regulation and technological innovation on economic growth. The results show that environmental regulation has a significant positive impact on economic growth through channels of technological innovation. The interaction between environmental regulation and technological innovation has a single threshold effect on economic growth. When the intensity of environmental regulation exceeds the critical value, environmental regulation will change from promoting economic growth to inhibiting economic growth through channels of technological innovation. Environmental regulation has negative spatial spillover effect on economic growth of neighboring regions, while technological innovation has positive spatial spillover effect on economic growth of neighboring regions.
... A possible reason is that larger firms generate more innovations than smaller firms, and therefore are more likely to create one or more which are patentable (Athreye et al., 2020). Guarascio and Tamagni (2019) studied the relation between R&D and patent persistence of firms and their growth. ...
... By comparing the IPR filings of the top 250 scale-ups with other scale-ups this paper has provided additional evidence that commercialization capabilities play a bigger role in the growth of these firms than technological capabilities. Like Guarascio and Tamagni (2019) we find that scale-ups do not show a significant higher propensity to apply for patents than normal firms. This also supports the conclusion that commercialization capabilities matter more than technological capabilities. ...
This paper studies the role of technological and commercialisation capabilities within scale-ups. Scale-ups are firms which manage to achieve an annual growth rate of at least 20% over a period of at least three years and with at least 10 employees in the beginning of the period. Based on evidence from IPR literature, we use patent filings to signal capabilities related to technological innovation and trademark filings to signal the downstream capabilities connected with the commercialisation of new products and services. By comparing the IPR flings of the top 250 scale-ups with other scale-ups and non-scale-up firms, this paper provides evidence that commercialisation capabilities contribute more to the growth of these firms than technological capabilities. Scale-ups tend to file trademarks already at a young age indicating that these capabilities are already present when these firms start off whereas patents are filed later on.
... The elaboration of innovation indicators used an IPO model system approach (input-processoutput). Several previous researchers stated that the input for innovation success (product innovation and process innovation) was the budget issued by a company for research and development (R&D) programs [79][80][81][82][83][84][85][86][87], including the budget for ICT investment [73,86,88]. Jin and Lee [89] explained that R&D budget assistance from the government can improve management performance to generate innovation. ...
... elaboration of innovation indicators used an IPO model system approach (input-processoutput). Several previous researchers stated that the input for innovation success (product innovation and process innovation) was the budget issued by a company for research and development (R&D) programs [79][80][81][82][83][84][85][86][87], including the budget for ICT investment [73,86,88]. Jin and Lee [89] explained that R&D budget assistance from the government can improve management performance to generate innovation. ...
Several state-owned companies (SOEs) have successfully implemented process innovation. This paper examines the success factors that influence the successful implementation of process innovation in Indonesian state-owned companies. The present study used the three stages of an online questionnaire in the Delphi method to obtain consensus from experts. The consensus was measured based on the mean and standard deviation of the assessment answers provided by our respondents. Based on the development of process innovation implementation frameworks shown in previous studies, we obtained 28 factors that influence the successful implementation of process innovation. Our panelists believed that human resources and organizational factors, such as leadership, problem understanding, strategy, and culture, affected the success of process innovation in SOEs, even more than the research and development budget, support, and commitment factor of a given company. Meanwhile, cost efficiency was the main factor driving a company’s motivation to implement process innovation. The success factors in implementing process innovation are an essential consideration for the management of other SOEs eager to improve their company’s innovation performance, especially process innovation. Success factors were carried out comprehensively for all implementation indicators of process innovation, including inputs, process (idea generation, idea selection, and idea implementation), outputs and outcomes, diffusion, culture, strategies, and push and pull factors.
... In all these cases, firm-specific capabilities are expected to increase with positive effects on productivity and export performance. Empirical evidence confirming this hypothesis abounds. 2 If new products are widely recognized as a key driver of export success (Coad 2009), the recipe should not be thought to work indiscriminately for all firms (Guarascio and Tamagni 2019). An extensive literature has in fact reported the presence of substantial and persistent heterogeneity along virtually every dimension of firm performance (Bartelsman and Doms 2000;Castellani and Zanfei 2007). ...
This paper explores the main drivers of firms' external competitiveness in times of crisis. We focus on the aftermath of the Great Recession (2008-2015) and present evidence based on a comprehensive survey of Italian companies (the MET dataset). Overall, our results highlight not only the strict correlation between internationalization and innovative activities but also a positive change of attitude of Italian firms towards these strategies. We show that, while structural factors play a key role for external competitiveness, other critical aspects trigger superior performances, especially strategic profiles, technological capabilities, and proactive behaviors such as innovativeness and R&D investment. Importantly , we document disproportionate effects of innovation for smaller and less productive companies. This points at dynamic strategies as a potential tool to fill the gap between larger/more productive companies and the set of less structured firms, a segment representing an ideal target for policy measures.
... Moschella et al. (2019) found that some relevant characteristics of the firm (e.g., productivity and innovation, profitability, and financial structure) do not allow predicting persistent HGFs using a sample of about 23,000 Chinese manufacturing firms observed over the period 1998-2007 (China's Miracle). Using the same firm-level data on Spanish firms that we employ in this work, Guarascio and Tamagni (2019) adopt a growth-regression strategy to assess the role of past persistent innovation (7 out of 10 consecutive years of innovation in 1990-1999) in succeeding sales growth over a 12-year period (2000-2012). Their results suggest that persistent innovators do not grow more or more persistently than other firms do. ...
... * 100 = 40%) lower probability of ending for the first NHG spell. 18 This result, which is consistent with the evidence provided by previous studies on the negative autocorrelation of growth rates (Coad 2007b), suggests that, for the average firm that has already experienced two transitions from NHG to HG, it is more difficult to experience a third one in a sort of "erratic" pattern (Coad 2007a;Guarascio and Tamagni 2019). In addition, the results in col. 2 show that the repetition of HG episodes does not increase the expected duration in that state. ...
This paper analyzes firms’ episodes (spells) of high growth (HG) using a sample of Spanish manufacturing firms observed over two decades. The use of duration models allows us to investigate the following: (i) the probability of experiencing HG episodes, (ii) persistence in HG, and (iii) the determinants of the transitions in and out of the HG state and whether their impact varies over the business cycle. We find that about half of the firms experience at least one HG episode, but they seldom experience more than one. Moreover, high-growth status is rarely repeated due to high first-year selection. Yet, in subsequent years beyond the first one, the hazard rate from HG status falls substantially. These results suggest an “episodic” nature of HG and further allow us to identify two groups of firms characterized by the following: (i) (relatively) long HG spells and short no high-growth (NHG) spells and (ii) short HG spells and long NHG spells. In addition, some firm and market (demand) characteristics increase the probability of becoming an HG firm and enhancing HG persistence. Finally, during the downturn, the role of younger age and smaller size in explaining HG decreases.
... A 250km radius from each firm would on average cover more than half of the territory of Germany. 12. Though in a recent paper, Guarascio and Tamagni (2019) could not find that persistent innovators in Spanish manufacturing experience a sales growth premium. 13. ...
Innovation activities of firms tend to be highly persistent. Yet, little is still known about potential spatial contingencies affecting the degree of persistence. This paper analyses the influence of local knowledge spillovers on firms’ persistence in innovation activities. Using a representative panel data set of firms in Germany from 2002 to 2016, complemented by detailed geographic information of patent activity over discrete distances to proxy local knowledge spillovers, we find that the local patenting activity positively moderates persistency in innovation activities. Estimations with different distance bands show that the strength of knowledge spillovers that contribute to innovation persistence attenuates with increasing distance and vanishes beyond 30 kilometres in manufacturing and beyond 20 kilometres in services.
... Within a competitive environment, continuous innovation is an important factor for the sustainable operation of the business [1]. Innovation refers to a high-risk, innovative idea for owners, which is considered to have highreward potential or extremely favorable commercial interest behaviors [2]. ...
... Enterprises can use innovation to grasp the market [1]. Also, the innovation can either be a new product, a new method, a kind of potential to create a new business market, or a behavior pattern to change competitors or consumers [19]. ...
It is not easy for the hotel industry to develop a new business model. To find new consumers, Taiwan’s hotel industry has learned from the successful experience of internal restaurants and set up affiliated restaurants. The innovative business model has become an important niche for grasping key technologies and expanding advantages in terms of food and beverage management outside the hotel building. Based on this, and on the application of resource theory, this research is based on the authors’ previous research results which used resource-based theories as the basis to develop evaluation dimensions and criteria. This article continues this aspect and model, and merges MCDM models such as DEMATEL and DANP methods to formulate a research evaluation standard system for affiliated restaurants. According to the research results, there are four resource dimensions and eight measurement indicators for the development of key resources for affiliated restaurants; the importance of the four resources is in the following order: organizational ability, personal ability, tangible assets, and intangible assets, and the first two are the “causes” in the causal relationship. The important order of the eight measurement indicators is organizational resources, human resources, financial resources, physical resources, brand/business reputation resources, marketing resources, technical resources, and relationship resources; among them, human resources and financial resources are the most important factors which are the “causes” in the causal relationship. This study uses a multi-criteria decision-making model to explore the resource application, evaluation, and importance ranking of hotel development for affiliated restaurants, which provides a benchmark for the hotel industry to establish affiliated restaurants as an innovative business model. The study results can be referred to for the future and sustainable development of the hotel industry.
... There is extensive literature on the persistence of innovation and how it is associated with a firms performance. This includes, for example, Le Bas and Scellato (2014), Guarascio and Tamagni (2019). However, understanding the relationships between a firm's performance and its retention of the components of the complementarity bundle has remained limited. ...
Abstract
This paper explores the dynamic nature of complementarities between technological and organizational innovation at firms. Using Spanish firm level panel data (PITEC) over period 2008-2016, it investigates how the formation, keeping and ending of the joint adoption of these
two core types of innovation is associated with firm performance. In the case of the general static test of complementarities we find no evidence of complementarities. However, once we focus on the analysis of within-firm changes in the complementarity bundle of innovation types, we observe clear evidence that some sequential as well as simultaneous strategy switches towards combining technological and organizational novelties are associated with significant performance premia at firms. Our findings point out the key role of technological innovation in these complementarities. We find evidence of sequential complementarity only when organizational innovation is added to the already existing technological innovation at the firm, not when organizational innovation is added as first component before technological innovation. In the case of dissolving the complementarity bundle of innovation types, the key disadvantage for the firm is related to dropping the technological innovation. Giving up only organizational innovation while keeping the technological innovation appears to have no negative effect, on average, on firm performance.
... Process innovations increase profits for the organization through improved efficiencies and reducing costs (Johne and Davies 2000). Faced with a competitive environment, a business needs to constantly renew itself, which is a key to sustainable management (Guarascio and Tamagni 2019). ...
Businesses in the past few years have paid more and more attention to brand awareness. More and more branded hotels have launched sub-brands so as to access a new market, boost brand exposure and value, and attain new market niches. The purpose of the work was to explore, on the basis of the business model, factors affecting hotel sub-brand development in Taiwan. The modified Delphi method was firstly referred to. Next, a questionnaire was designed to serve as the basis of quantitative analysis. Third, experienced professionals from the hotel business were invited to participate in a questionnaire survey. The affecting factors of hotel sub-brand development were identified, and analysis data were generated. Grey-TOPSIS was employed to evaluate, calculate, and certify weight analysis and ranking of affecting indices of hotel sub-branding. The results explained that there are nine affecting factors for developing a hotel’s sub-branding. They are channel, target customers, customer relationship, key activities, revenue model, key partners, value proposition, key resources, and cost structure. The top four are the most important ones. This finding, figured out by using soft mathematical methods, can provide a proper evaluating way for decision making by the hotel industry, which wants to establish its sub-brands.
