Innovation Strategies and Technical Efficiency

Innovation Strategies and Technical Efficiency

Internal R&D
External R&D
R&D cooperation
Technical efficiency

In the innovation literature, little attention has been paid to technical efficiency as a measure of performance, despite the fact that technical efficiency is key to explaining firm productivity. In this study we analyze the influence of internal R&D, external R&D and R&D cooperation on the technical efficiency of the firm. The data used come from the Panel de Innovacion ´ Tecnologica ´ 2016 for Spanish companies, from whose database we have selected the set of innovative manufacturing firms. To estimate the coefficients of interest we have constructed a knowledge production function, estimated using Stochastic Frontier Analysis (SFA) and the Heckman correction. The results indicate that both internal R&D and R&D cooperation have a positive and significant influence on
technical efficiency, while external R&D has a significant negative relationship. Knowing this type of information in advance is very important for business managers and policy makers, since it facilitates decision-making on innovation strategies, as well as the formulation of public policies to support innovation leading to an efficient
allocation of public resources.

Jennifer Gonzalez-Blanco, ´ María del Mar Rodríguez-Domínguez, Manuel Guisado-Gonzalez

https://www.sciencedirect.com/journal/european-research-on-management-and-business-economics/vol/30/issue/2

Elsevier Espana, S.L.U

21 March 2024

Sri Wahyuni

ISSN: 2444-8834

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Jurnal Internasional European Research on Management and Business Economics 2024