Template-Type: ReDIF-Paper 1.0
Author-Name: Koellinger, Ph.D.
Author-Name-Last: Koellinger
Author-Name-First: Philipp
Author-Person: pko149
Title: The Relationship between Technology, Innovation, and Firm Performance: Empirical Evidence on E-Business in Europe
Abstract: This article analyzes the relationship between the usage of Internet-based technologies, different types of innovation, and performance at the firm level. Data for the empirical investigation originates from a sample of 7,302 European enterprises. The empirical results show that Internet-based technologies were an important enabler of innovation in the year 2003. It was found that all studied types of innovation, including Internet-enabled and non-Internet-enabled product or process innovations, are positively associated with turnover and employment growth. Firms that rely on Internet-enabled innovations are at least as likely to grow as firms that rely on non-Internet-enabled innovations. Finally, it was found that innovative activity is not necessarily associated with higher profitability. Possible reasons for this and implications are discussed.
Creation-Date: 2008-05-26
File-URL: https://repub.eur.nl/pub/12469/ERS-2008-031-ORG.pdf
File-Format: application/pdf
Series: RePEc:ems:eureri
Number: ERS-2008-031-ORG
Classification-JEL: M, M13, O32
Keywords: e-business, firm performance, information technology, innovation, profitability
Handle: RePEc:ems:eureri:12469