The effects of Innovation capacity on Innovation Performance in Spanish fast-growing firms: A DEA-based Malmquist productivity approach

Abstract

Innovation performance depends on a number of factors, including the innovation capabilities themselves. The efficiency analysis proposed by the article attempts to understand the effectiveness of Spanish high-growth firms from their innovation performance. Using the Pitec database, the current causal-comparative research focuses on innovative Gazelles to explain their sales growth across 2014 and 2016 through employees’ number, R&D capacities, and technological development as inputs. Malmquist productivity index was combined with a panel data regression to test the hypotheses related to the model. Findings support the moderating effect of employee’s number on the relationship between innovation (technical progress) and sales growth. The same moderating effect was proven of “Technology development”. However, the Panel data regression gives a non-statically significant correlation between R&D capacities and sales growth presenting an indirect effect of R&D through innovation capacities.

Keywords : Innovation capabilities, Innovation performance, High-growth firms (Gazelles), DEA Malmquist Index, Pitec database.

Classification JEL : M15

Paper type : Empirical Research