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Financial resources for research and innovation in small and larger firms: Is it a case of the more you have, the more you do?
Date
2022
Abstract
Our study analyses how firms’ internal financial resources impact their engagement in scientific research, development, and five innovation activities. Furthermore, we investigate how firm-size moderates the impact of firms’ internal financial resources on scientific research, development, and innovation. Our approach provides novel insights regarding whether more money leads to more research and innovation, a topic that remains highly con tested in the literature. Our analysis uses a novel unbalanced panel dataset of 1,446 firms in Ireland, over the period 2008–2016. Levels of internal financial resources are found to positively impact larger-sized firms’ (50+ employees) engagement in scientific research, process innovation and product innovation. However, such resources tend to hinder small-sized firms’ (less than 50 employees) engagement in service and organisational innovation. Our research refines innovation theory by reconciling contrasting views regarding the importance of financial resources for research and innovation, and offers novel insights for informing related public policy interventions.
Supervisor
Description
peer-reviewed
Publisher
Taylor & Francis - Routledge
Citation
Industry and Innovation;
Collections
Files
Funding code
Funding Information
Science Foundation Ireland (SFI)
Sustainable Development Goals
External Link
Type
Article
Rights
https://creativecommons.org/licenses/by-nc-sa/1.0/