Innovation. An Instrument for Development of Companies
Author:Ana-Maria Nica, Ion Stancu and Dumitra Stancu
JEL:C31; D24; L25
DOI:
Keywords:Innovation, development, construction sector, performance
Abstract:
Innovation is seen in numerous specialized studies as an efficient method for improving the
performance of a company based on the sector in which that company operates. Based on
this idea, the article aims to determine the nature of inter-correlation between the
innovation activity of companies and the level of performance of these, which are the main
types of innovation and how they can influence companies` position and how the sector of
activity can influence the dimension of the impact of innovation.
For achieve these objectives have been analysed empirical studies in various sectors,
studies which have highlighted a positive inter-correlation between innovation activity and
the performance of companies with significant differences depending on the type of
innovation and industry use.
The article is completed by an empirical analysis which aims to determine the extent to
which performance of companies in the construction sector is sensitive to innovation
activity. For the analysis were collected data from 14 companies which developed the
specific activities in the construction sector of Europe, were achieve a total of 112
observations. The results obtained by applying a multiple regression model shows a
positive correlation relationship between indicators of innovation (R&D expenditures and
the value of patents/patents) on the one side and performance indicators (equity, labour
productivity and number of employees) on the other side. Another direction of research
analysed in this paper is to determine the impact of labour indicators on the level of
innovation, in this situation was achieve a positive but insignificant inter-correlation
between those indicators.