Investment and Expenditure on Innovation Activities and Innovative Capability: Empirical Evidence from Portuguese Services Firms and KIBS

Abstract

This research aims to analyze the degree of importance of investment and expenditure on innovation activities for entrepreneurial innovative capability, in the scope of Portuguese services firms and the firms belonging to the TUBS - knowledge-intensive business services. A conceptual model was proposed and several research hypotheses were empirically tested using secondary data, belonging to the 5th CIS 2006, supervised by EUROSTAT. A data set from 829 KIBS firms was studied. The method used will be the logistic regression model. According to the results obtained, the greater the fmancial investment in acquisition of machinery, equipment and software, in internal research and development, in acquisition of external knowledge, in marketing activities and other procedures, the greater the propensity for firms to innovate in terms of services. This study highlights the contributions that innovation activities can provide in what regards the development of innovation process, giving special emphasis to their service innovation. [ABSTRACT FROM AUTHOR] Copyright of International Business Research is the property of Canadian Center of Science & Education and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)