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 Polyethylene Welding

The relationship between technology, innovation, and firm
performance—Empirical evidence from e-business in Europe

 

Abstract

This article analyzes the relationship between the usage of Internet-based technologies, different types of innovation, and performance at the firm level. Data for the empirical investigation originates from a sample of 7302 European enterprises.

The empirical results

show that Internet-based technologies were an important enabler of innovation in the year 2003. It was found that all studied types of innovation, including Internet-enabled and non-Internet-enabled product or process innovations, are positively associated with turnover and employment growth. Firms that rely on Internet-enabled innovations are at least as likely to grow as firms that rely on non-Internet-enabled innovations.
Finally,it was found that innovative activity is not necessarily associated with higher profitability.

Possible reasons for this and implications are discussed.

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