Abstract
This work analyzes the relationship between innovation and performance in a population of Italian listed companies, with special reference to the time period before and during the economic-financial crisis. The analysis examines the relationship between the number of patents registered and the trend of performance indicators, such as turnover and return on invested capital (ROI), with 1 and 2-year delay. Although the results do not identify a precise trend for the entire sample, regular behaviors emerge: with the approaching crisis, a high reduction in the average number of patents and a worse performance are recorded. Nevertheless, with reference to these trends, no relationship between the two variables was identified.
References
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Aspden, H. (1983). Patent statistics as a measure of technological vitality.
World Patent Information, 5(3), 170-173. doi: 10.1016/0172-2190(83)90137-0
Birkinshaw, J., Bresman, H., & Nobel, R. (2010). Knowledge transfer in interna-tional acquisitions: A retrospective. Journal of International Business Studies, 41(1), 21-26. doi: 10.1057/jibs.2009.71
Bong, C., & Suk, W.C. (2013). Innovation and firm performance in Korea and China: a cross-context test of mainstream theories. Technology Analysis & Strategic Management, 25(4), 423-444. doi: 10.1080/09537325.2013.774346
Brenner, M.S., & Rushton, B.M. (1989). Sales growth and R&D in the chemical industry. Research Technology Management, 32(2), 8-15. doi: 10.1080/08956308.1989.11670580
Caramiello, C. (1993). Indici di bilancio: strumenti per l’analisi della gestione aziendale. Milano: Giuffrè.
Cho, H., & Pucik, V. (2005). Relationship between innovativeness, quality, growth, profitability and market value. Strategic Management Journal, 26(6), 555–575. doi: 10.1002/smj.461
Crépon, B., Duguet, E., & Mairesse, J. (1998). Research, innovation and produc-tivity: an econometric analysis at the firm level. Economics of Innovation and New Technology, 7(2), 115-158. doi: 10.1080/10438599800000031
Danguy, J., De Rassenfosse, G., & van Pottelsberghe de la Potterie, B. (2014). On the origins of the worldwide surge in patenting: an industry perspective on the R&D–patent relationship. Industrial & Corporate Change, 23(2), 535-572. doi: 10.1093/icc/dtt042
Dave, P., Wadhwa, V., Aggarwal, S., & Seetharaman, A. (2013). The Impact of Research and Development on the Financial Sustainability of Information Tech- nology (IT) Companies Listed on the S&P 500 Index. Journal of Sus-tainable De- velopment, 6(11), 122-138. doi:10.5539/jsd.v6n11p122
Ernst, H. (2001). Patent applications and subsequent changes of performance: evidence from time-series cross-section analyses on the firm level. Research Policy, 30(1), 143-157. doi: 10.1016/S0048-7333(99)00098-0
Ferrero, G., & Dezzani, F. (1979). Manuale delle analisi di bilancio. Milano: Giuffrè.
Geroski, P., & Machin, S. (2013). Think again. Do innovating firms outperform non-innovators?. Business Strategy Review, 24(2), 82-86. doi: 10.1111/j.1467- 8616.2013.00959.
Hagedoorn, J., & Cloodt, M. (2003). Measuring innovative performance: is there an advantage in using multiple indicators? Research Policy, 32 (8), 1365-1379. doi: 10.1016/S0048-7333(02)00137-3.
Hall, B., & Mairesse, J. (1995). Exploring the relationship between R&D and productivity in French manufacturing firms. Journal of Econometrics, 65(1), 263- 293. doi: 10.1016/0304-4076(94)01604-X
Hanel, P. (2006). Intellectual Property Rights Business Management Practices: A Survey of the Literature. Technovation, 26, 895-931. doi: 10.1016/j.technovation.2005.12.001
Hart, S.L., & Ahuja, G. (1996). Does it pay to be green? An empirical examination of the relationship between emission reduction and firm performance. Busi-ness Strategy and the Environment. 5(1). 30-37. doi: 10.1002/(SICI)1099- 0836(199603)5:1
Horta, I.M., Camanho, A.M.S., & Moreira da Costa, J. (2012). Performance as-sessment of construction companies: A study of factors promoting financial soundness and innovation in the industry. International Journal of Production Economics, 137 (1), 84-93. doi: 10.1016/j.ijpe.2012.01.015
Hsu, F-J., Chen, M.-Y., Chen, Yu-C., & Wang, W.-C. (2013). An Empirical Study on the Relationship between R&D and Financial Performance. Journal of Ap-plied Finance & Banking, 3(5), 107-119.
Hunton, J.E., Lippincott, B., & Reck, J.L. (2003). Enterprise resource planning systems: comparing firm performance of adopters and non-adopters. International Journal of Accounting Information Systems, 4(3), 165-184. doi: 10.1016/S1467-0895(03)00008-3
Lanjouw, J.O., & Schankerman, M. (2004). Patent quality and research produc- tivity: Measuring innovation with multiple indicators. The Economic Journal, 114, 441-465. doi: 10.1111/j.1468-0297.2004.00216.x
Lantz, J.S., & Sahut, J.-M. (2005). R&D Investment and the Financial Perfor-mance of Technological Firms. International Journal of Business, 10(3), 251-269.
Liang, L., & Yan, S. (2006). Empirical Research on R&D Expenditure and Its Economic Effect of Listed Companies. Science of Science and Management of S&T, 7, 34-38.
Lichtenberg, F.R., & Siegel, D. (1991). The Impact of R&D Investment on Productivity: New Evidence using Linked R&D-LRD Data. Economic Inquiry, 29(2), 203-228. doi: 10.1111/j.1465-7295.1991.tb01267.x
Madrid-Guijarro, A., García-Pérez-de-Lema, D., & Van Auke, H. (2013). An In-vestigation of Spanish SME Innovation during Different Economic Conditions. Journal of Small Business Management, 51(4), 578-601. doi: 10.1111/jsbm.12004
Mairesse, J., & Mohnen, P. (2005). The Importance of R&D for Innovation: A Re-assessment Using French Survey Data. The Journal of Technology Transfer, 30 (1-2), 183-197.
Makkonen, H., Pohjola, M., Olkkonen, R., & Koponen, A. (2014). Dynamic ca- pabilities and firm performance in a financial crisis. Journal of Business Re- search, 67(1), 2707-2719. doi: 10.1016/j.jbusres.2013.03.020
Mansfield, E. (1986). Patents and Innovation: An Empirical Study. Management Science, 32(2), 173-181. doi: 10.1287/mnsc.32.2.173
Marsili, O., & Salter, A. (2006). The dark matter of innovation: design and inno- vative performance in Dutch manufacturing. Technology Analysis & Strategic Management, 18 (5), 515-534. doi: 10.1080/09537320601019628
Martin, N.L., & Mykytyn, P.P. (2009). Evaluating the Financial Performance of Business Method Patent Owners. Information Systems Management, 26(3), 285- 301. doi: 10.1080/10580530903017484
Mazzucato, M., & Tancioni, M. (2012). R&D. patents and stock return volatility. Journal of Evolutionary Economics, 22(4), 811-832. doi: 10.1007/s00191-012- 0289-x
Mokhtar, M.Z., Karbhari, Y., & Naser, K. (2005). Company Financial Perfor- mance and ISO 9000 Registration: Evidence from Malaysia. Asia Pacific Busi- ness Review, 11(3), 349-367. doi: 10.1080/13602380500068441
Napolitano, G., & Sirilli, G. (1990). The patent system and the exploitation of in- ventions: results of a statistical survey conducted in Italy. Technovation, 10(1), 5- 16. doi: 10.1016/0166-4972(90)90038-L
Parisi, M.L., Schiantarell,. F., & Sembenelli, A. (2006). Productivity, innovation and R&D: micro evidence for Italy. European Economic Review, 50 (8), 2037- 2061. doi: 10.1016/j.euroecorev.2005.08.002
Paunov, C. (2012). The global crisis and firms’ investments in innovation.
Research Policy, 41(1), 24-35. doi: 10.1016/j.respol.2011.07.007
Petroni, G. (1993). Gli investimenti in ricerca e sviluppo: gli effetti della ricerca industriale nella dinamica dell’impresa. Padova: Cedam.
Pianta, M., & Vaona, A. (2007). Innovation and Productivity. European Indus- tries. Economics of Innovation and New Technology, 16(7), 485-499. doi: 10.1080/10438590600914569
Roberts, P.W. (1999). Product innovation. product-market competition and per- sistent profitability in the U.S. pharmaceutical industry. Strategic Management Journal. 20(7). 655-670. doi: 10.1002/(SICI)1097-0266(199907)20:73.0.CO;2-P
Rosenkopf, L., & Nerkar, A. (2001). Beyond local search: Boundary-spanning. exploration and impact in the optical disc industry. Strategic Management Jour- nal, 22 (4), 287-306. doi: 10.1002/smj.160
Sohn, D.-W., Hur, W., & Kim, H.J. (2010). Effects of R&D and patents on the fi-nancial performance of Korean venture firms. Asian Journal of Technology In- novation, 18(2), 169-185. doi: 10.1080/19761597.2010.9668697
Sostero, U., Ferrarese, P., Mancin, M., & Marcon, C. (2014). L’analisi economico finanziaria dei bilanci. Milano: Giuffrè.
Sougiannis, T. (1994). The accounting based valuation of corporate R&D. The Accounting Review, 69(1), 44-68.
Stuart, T.E. (2000). Interorganizational alliances and the performance of firms: A study of growth and innovation rates in a high-technology industry. Strategic Management Journal, 21 (8), 791-811. doi: 10.1002/1097- 0266(200008)21:8<791::AID-SMJ121>3.0.CO;2-K
Teodori, C. (2008). L’analisi di bilancio. Torino: Giappichelli.
Xin, J.Y.. Yeung, A.C.L., Cheng, T.C.E. (2008). Radical innovations in new prod-uct development and their financial performance implications: An event study of US manufacturing firms. Operation Management Research. 1(2). 119- 128. doi: 10.1007/s12063-009-0017-3
Xu, X., & Tang, Q. (2010). The impact of R&D activities and innovation patents on firm value. A study on Chinese listed companies. R&D Management, 22(4), 20-29.
Zhu, Z., & Huang, F. (2012). The Effect of R&D Investment on Firm’s Financial Performance: Evidence from the Chinese Listed IT Firms. Modern Economy, 3(8), 915-919. doi: 10.4236/me.2012.38114
Antonioli, D., Mazzanti, M., & Pini, P. (2010). Productivity, innovation strategies and industrial relations in SMEs. Empirical evidence for a local production system in northern Italy. International Review of Applied Economics, 24(4), 453-482. doi: 10.1080/02692171.2010.483790
Artz, K.W., Norman, P.M., Hatfield, D.E., & Cardinal, L.B. (2010). A Longitudinal Study of the Impact of R&D, Patents, and Product Innovation on Firm Perfor-mance. Journal of Production Innovation Management, 27(5), 725-740. doi: 10.1111/j.1540-5885.2010.00747
Arundel, A. (2001). The relative effectiveness of patents and secrecy for appro-priation. Research Policy, 30(4). 611-624. doi: 10.1016/S0048-7333(00)00100-1
Arundel, A., & Kabla, I. (1998). What percentage of innovations are patented? Empirical estimates for European firms. Research Policy, 27(2), 127-141. doi: 10.1016/S0048-7333(98)00033-X
Aspden, H. (1983). Patent statistics as a measure of technological vitality.
World Patent Information, 5(3), 170-173. doi: 10.1016/0172-2190(83)90137-0
Birkinshaw, J., Bresman, H., & Nobel, R. (2010). Knowledge transfer in interna-tional acquisitions: A retrospective. Journal of International Business Studies, 41(1), 21-26. doi: 10.1057/jibs.2009.71
Bong, C., & Suk, W.C. (2013). Innovation and firm performance in Korea and China: a cross-context test of mainstream theories. Technology Analysis & Strategic Management, 25(4), 423-444. doi: 10.1080/09537325.2013.774346
Brenner, M.S., & Rushton, B.M. (1989). Sales growth and R&D in the chemical industry. Research Technology Management, 32(2), 8-15. doi: 10.1080/08956308.1989.11670580
Caramiello, C. (1993). Indici di bilancio: strumenti per l’analisi della gestione aziendale. Milano: Giuffrè.
Cho, H., & Pucik, V. (2005). Relationship between innovativeness, quality, growth, profitability and market value. Strategic Management Journal, 26(6), 555–575. doi: 10.1002/smj.461
Crépon, B., Duguet, E., & Mairesse, J. (1998). Research, innovation and produc-tivity: an econometric analysis at the firm level. Economics of Innovation and New Technology, 7(2), 115-158. doi: 10.1080/10438599800000031
Danguy, J., De Rassenfosse, G., & van Pottelsberghe de la Potterie, B. (2014). On the origins of the worldwide surge in patenting: an industry perspective on the R&D–patent relationship. Industrial & Corporate Change, 23(2), 535-572. doi: 10.1093/icc/dtt042
Dave, P., Wadhwa, V., Aggarwal, S., & Seetharaman, A. (2013). The Impact of Research and Development on the Financial Sustainability of Information Tech- nology (IT) Companies Listed on the S&P 500 Index. Journal of Sus-tainable De- velopment, 6(11), 122-138. doi:10.5539/jsd.v6n11p122
Ernst, H. (2001). Patent applications and subsequent changes of performance: evidence from time-series cross-section analyses on the firm level. Research Policy, 30(1), 143-157. doi: 10.1016/S0048-7333(99)00098-0
Ferrero, G., & Dezzani, F. (1979). Manuale delle analisi di bilancio. Milano: Giuffrè.
Geroski, P., & Machin, S. (2013). Think again. Do innovating firms outperform non-innovators?. Business Strategy Review, 24(2), 82-86. doi: 10.1111/j.1467- 8616.2013.00959.
Hagedoorn, J., & Cloodt, M. (2003). Measuring innovative performance: is there an advantage in using multiple indicators? Research Policy, 32 (8), 1365-1379. doi: 10.1016/S0048-7333(02)00137-3.
Hall, B., & Mairesse, J. (1995). Exploring the relationship between R&D and productivity in French manufacturing firms. Journal of Econometrics, 65(1), 263- 293. doi: 10.1016/0304-4076(94)01604-X
Hanel, P. (2006). Intellectual Property Rights Business Management Practices: A Survey of the Literature. Technovation, 26, 895-931. doi: 10.1016/j.technovation.2005.12.001
Hart, S.L., & Ahuja, G. (1996). Does it pay to be green? An empirical examination of the relationship between emission reduction and firm performance. Busi-ness Strategy and the Environment. 5(1). 30-37. doi: 10.1002/(SICI)1099- 0836(199603)5:1
Horta, I.M., Camanho, A.M.S., & Moreira da Costa, J. (2012). Performance as-sessment of construction companies: A study of factors promoting financial soundness and innovation in the industry. International Journal of Production Economics, 137 (1), 84-93. doi: 10.1016/j.ijpe.2012.01.015
Hsu, F-J., Chen, M.-Y., Chen, Yu-C., & Wang, W.-C. (2013). An Empirical Study on the Relationship between R&D and Financial Performance. Journal of Ap-plied Finance & Banking, 3(5), 107-119.
Hunton, J.E., Lippincott, B., & Reck, J.L. (2003). Enterprise resource planning systems: comparing firm performance of adopters and non-adopters. International Journal of Accounting Information Systems, 4(3), 165-184. doi: 10.1016/S1467-0895(03)00008-3
Lanjouw, J.O., & Schankerman, M. (2004). Patent quality and research produc- tivity: Measuring innovation with multiple indicators. The Economic Journal, 114, 441-465. doi: 10.1111/j.1468-0297.2004.00216.x
Lantz, J.S., & Sahut, J.-M. (2005). R&D Investment and the Financial Perfor-mance of Technological Firms. International Journal of Business, 10(3), 251-269.
Liang, L., & Yan, S. (2006). Empirical Research on R&D Expenditure and Its Economic Effect of Listed Companies. Science of Science and Management of S&T, 7, 34-38.
Lichtenberg, F.R., & Siegel, D. (1991). The Impact of R&D Investment on Productivity: New Evidence using Linked R&D-LRD Data. Economic Inquiry, 29(2), 203-228. doi: 10.1111/j.1465-7295.1991.tb01267.x
Madrid-Guijarro, A., García-Pérez-de-Lema, D., & Van Auke, H. (2013). An In-vestigation of Spanish SME Innovation during Different Economic Conditions. Journal of Small Business Management, 51(4), 578-601. doi: 10.1111/jsbm.12004
Mairesse, J., & Mohnen, P. (2005). The Importance of R&D for Innovation: A Re-assessment Using French Survey Data. The Journal of Technology Transfer, 30 (1-2), 183-197.
Makkonen, H., Pohjola, M., Olkkonen, R., & Koponen, A. (2014). Dynamic ca- pabilities and firm performance in a financial crisis. Journal of Business Re- search, 67(1), 2707-2719. doi: 10.1016/j.jbusres.2013.03.020
Mansfield, E. (1986). Patents and Innovation: An Empirical Study. Management Science, 32(2), 173-181. doi: 10.1287/mnsc.32.2.173
Marsili, O., & Salter, A. (2006). The dark matter of innovation: design and inno- vative performance in Dutch manufacturing. Technology Analysis & Strategic Management, 18 (5), 515-534. doi: 10.1080/09537320601019628
Martin, N.L., & Mykytyn, P.P. (2009). Evaluating the Financial Performance of Business Method Patent Owners. Information Systems Management, 26(3), 285- 301. doi: 10.1080/10580530903017484
Mazzucato, M., & Tancioni, M. (2012). R&D. patents and stock return volatility. Journal of Evolutionary Economics, 22(4), 811-832. doi: 10.1007/s00191-012- 0289-x
Mokhtar, M.Z., Karbhari, Y., & Naser, K. (2005). Company Financial Perfor- mance and ISO 9000 Registration: Evidence from Malaysia. Asia Pacific Busi- ness Review, 11(3), 349-367. doi: 10.1080/13602380500068441
Napolitano, G., & Sirilli, G. (1990). The patent system and the exploitation of in- ventions: results of a statistical survey conducted in Italy. Technovation, 10(1), 5- 16. doi: 10.1016/0166-4972(90)90038-L
Parisi, M.L., Schiantarell,. F., & Sembenelli, A. (2006). Productivity, innovation and R&D: micro evidence for Italy. European Economic Review, 50 (8), 2037- 2061. doi: 10.1016/j.euroecorev.2005.08.002
Paunov, C. (2012). The global crisis and firms’ investments in innovation.
Research Policy, 41(1), 24-35. doi: 10.1016/j.respol.2011.07.007
Petroni, G. (1993). Gli investimenti in ricerca e sviluppo: gli effetti della ricerca industriale nella dinamica dell’impresa. Padova: Cedam.
Pianta, M., & Vaona, A. (2007). Innovation and Productivity. European Indus- tries. Economics of Innovation and New Technology, 16(7), 485-499. doi: 10.1080/10438590600914569
Roberts, P.W. (1999). Product innovation. product-market competition and per- sistent profitability in the U.S. pharmaceutical industry. Strategic Management Journal. 20(7). 655-670. doi: 10.1002/(SICI)1097-0266(199907)20:73.0.CO;2-P
Rosenkopf, L., & Nerkar, A. (2001). Beyond local search: Boundary-spanning. exploration and impact in the optical disc industry. Strategic Management Jour- nal, 22 (4), 287-306. doi: 10.1002/smj.160
Sohn, D.-W., Hur, W., & Kim, H.J. (2010). Effects of R&D and patents on the fi-nancial performance of Korean venture firms. Asian Journal of Technology In- novation, 18(2), 169-185. doi: 10.1080/19761597.2010.9668697
Sostero, U., Ferrarese, P., Mancin, M., & Marcon, C. (2014). L’analisi economico finanziaria dei bilanci. Milano: Giuffrè.
Sougiannis, T. (1994). The accounting based valuation of corporate R&D. The Accounting Review, 69(1), 44-68.
Stuart, T.E. (2000). Interorganizational alliances and the performance of firms: A study of growth and innovation rates in a high-technology industry. Strategic Management Journal, 21 (8), 791-811. doi: 10.1002/1097- 0266(200008)21:8<791::AID-SMJ121>3.0.CO;2-K
Teodori, C. (2008). L’analisi di bilancio. Torino: Giappichelli.
Xin, J.Y.. Yeung, A.C.L., Cheng, T.C.E. (2008). Radical innovations in new prod-uct development and their financial performance implications: An event study of US manufacturing firms. Operation Management Research. 1(2). 119- 128. doi: 10.1007/s12063-009-0017-3
Xu, X., & Tang, Q. (2010). The impact of R&D activities and innovation patents on firm value. A study on Chinese listed companies. R&D Management, 22(4), 20-29.
Zhu, Z., & Huang, F. (2012). The Effect of R&D Investment on Firm’s Financial Performance: Evidence from the Chinese Listed IT Firms. Modern Economy, 3(8), 915-919. doi: 10.4236/me.2012.38114
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