Mr Szutowski,

An obvious one is spending on R&D, I would think given that those you identify do not explicitly point to this sort of spending. It may well be that it may come under another heading.

A profitable bank may not be spending on innovation, except perhaps in marketing, and IT. But IT may be off-the-shelf... so financially health is no indicator of interest in innovation.

Dear Phill, thank you very much for the answer!

I guess I should have specified in the question few more details about my research.  I have a bunch of very different economic and organisational variables, which theoretically relate to company’s innovation activity. Now I try to complete the model by adding several financial variables. Therefore, I look for few financial indicators, which may have an impact on company’s innovation activities. Of course, among others I did include R&D spending. Is there anything else that comes to your mind?

Best Regards

Dear Dawid

Greetings,

Please find the attached file about your topic may be useful for you

Best Regards

Dear Faris,

thank you very much for the paper, I'll study it with pleasure.

Best regards

Dear Dawid

I recomend the following articles writen by Minsky. He analyses the schumpeterean creative destructuve phenomena from the perpspective of finances

Best regards

Gabriel

Minsky, H. (1986): Stabilizing an Unstable Economy. New Haven: Yale University Press.

 ‒‒‒‒‒‒‒‒ (1990): “Schumpeter: Finance and Evolution”. In Heertje, A.; Perlman, M. (eds.): Evolving Technology and Market Structure — Studies in Schumpeterian Economics. Ann Arbor: Michigan University Press.

Dear Gabriel,

Thank you for the suggestion, bull's eye!

Best regards

Dear Dawid,

Please find the attached file about your topic may be useful for you

Best Regards

Dear Lourdes,

thank you very much for the contribution!

Best regards

RND Investment, and you can also look at the paper attached

Dear Sumukh,

thank you very much for the attached paper!

Best regards

Dear Mr. Szutowski, 

The most widely used variable is R&D investments. You can also use Altman's Z-score, which represents the riskiness (probability of default) of firms, see Murro, P., 2013. THE DETERMINANTS OF INNOVATION: WHAT IS THE ROLE OF RISK? , 81(3), 293-323.

In addition, investments in acquisition of knowledge about TQM programs, see Demirbag, M., Tatoglu, E., Tekinkus, M. and Zaim, S. (2006) ΄An analysis of the relationship between TQM implementation and organizational performance, evidence from Turkish SMEs΄, Journal of Manufacturing Technology Management, 17(6), 829-847.

Best regards

Hi Dawid,

My own research shows that financial assistance from the government is crucial to improve innovative capacity of firms in developing countries, especially those within the SME category.  This financial assistance typically includes funding/grants and tax exemptions.  

However, an alternative viewpoint argues that excessive government assistance (protectionism) will backfire and result in lower international competitiveness.

Based on the above, you can perhaps consider government financial assistance as another factor in your study, either as an independent or a moderating variable (depending on the context of your study).

All the best,

Aida

Dear Konstantinos, Dear Idris,

Thank you very much for the answers! Lovable points!

Best regards