“Differences in the Impact of Innovation Relationships on Firms’ Productivity: Evidence from CIS 2014”

Abstract

In this paper we explore the complementarity and substitutability relationships between different innovation activities (firm, market, organizational and process innovations) by utilizing cross-sectional data taken from the Community Innovation Survey - CIS2014 for two groups of countries: Central and Eastern Europe and Western European countries. Our findings suggest that the relations between different innovation pairs have a substitute nature. We rationalize our results by conducting a robustness analysis for each country separately and we discovered a wide range of different complementary relationships. These relationships are dependent on the underlying country that is subject of the analysis.