Most studies use R&D investments, patents or brands to measure firm innovativeness. However, some firms specifically in developing economies do not disclose these items in their financial statements since it is not mandatory for them to do so. Thus, how can we measure their level of innovativeness using secondary data?
Dear Saheed,
Most of studies on innovativeness that use patents, R&D etc. are also not very reliable. The best way to measure innovativeness is to measure perceived innovativeness using surveys, interviews etc. In real business life innovativeness is a strong competitive weapon and, except for some special cases and industries where the share of sales spent on R&D is used as a PR tool, IT IS IMPOSSIBLE TO GET A RELIABLE MEASURE OF INNOVATIVENESS FROM SECONDARY SOURCES.
Sorry,
Igor Gurkov
I noted some articles pointed the roles of human capital in firm innovation.
The following articles are available in google scholar:
*Santos-Rodrigues, H., Dorrego, P. F., & Jardon, C. F. (2010). The influence of human capital on the innovativeness of firms. The International Business & Economics Research Journal, 9(9), 53.
*Firm-level human capital and innovation: evidence from China (PhD Thesis)
*Selvarajan, T. T., Ramamoorthy, N., Flood, P. C., Guthrie, J. P., MacCurtain, S., & Liu, W. (2007). The role of human capital philosophy in promoting firm innovativeness and performance: Test of a causal model. The International Journal of Human Resource Management, 18(8), 1456-1470.
All the best.
I would like to share as following:
Hami, N., Muhamad, M.R. and Ebrahim, Z. (2015). The impact of sustainable manufacturing practices and innovation performance on economic sustainability. Procedia CIRP, 26, 190-195.
Good luck
May be you could look at;
- Intangible asset ratio
- Level of technological knowledge
- Unique resource or specialized knowledge
ps- I don't have articles yet to support the above
Dear Saheed,
Most of studies on innovativeness that use patents, R&D etc. are also not very reliable. The best way to measure innovativeness is to measure perceived innovativeness using surveys, interviews etc. In real business life innovativeness is a strong competitive weapon and, except for some special cases and industries where the share of sales spent on R&D is used as a PR tool, IT IS IMPOSSIBLE TO GET A RELIABLE MEASURE OF INNOVATIVENESS FROM SECONDARY SOURCES.
Sorry,
Igor Gurkov
Thanks everyone for your links and suggestions. I'm very grateful.
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