A Firm-Level Analyses of the Link Between Innovation Investments and Performance
Keywords:Firm Performance, Entrepreneurship, Innovation, Organization of Production
Our study focuses on the analyses of investments in innovation of enterprises and their performance impact in Albania. We use data from 2019 Enterprise Surveys (ES) to answer the research question and focus on digitalization patterns that characterize Albanian enterprises. The survey was a shared project of the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and the World Bank Group (WBG); the data are collected in Albania between January and May 2019. The objective of the ES is to contribute to understanding what firms experience in the private sector. Collected data are based on firms’ experiences and enterprises’ perceptions of the environment in which they operate.
The dependent variable is the performance of the firms measured in terms of sales growth and labor productivity. In contrast, the vector of independent variables is composed of enterprise characteristics such as firm size, ownership structure, legal status, R&D expenses, access to formal banking services, and gender ownership. Moreover, to capture the innovation investment, we will use the following ES questions: (1) During the last three years, has this establishment introduced new or improved products or services? (2) Did this establishment spend on research and development activities?
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