Impact of Technological Innovation on International Competitiveness of Firms White Paper
The central role of innovation driven knowledge in enhancing economic performance of ﬁrms can hardly be overemphasized. Technological innovation as an accepted source of organizational knowledge has thus gained added signiﬁcance as an important driver of organizational performance.
This study utilizes a broader deﬁnition of a ﬁrm’s technological innovation capabilities that include the generation, dissemination and strength of the innovative activity in a ﬁrm. They are then used to predict international competitiveness of the ﬁrm.
The unique features of this study are that it uses multiple indicators of ﬁrm’s technological innovation, it uses a cross sectional, longitudinal data along with lagged measures of international competitiveness.
Our results are quite encouraging with each factor being a signiﬁcant predictor of foreign sales. However, one factor, innovation generation, returned an unpredicted negative sign. This is partially explained due to the nature of changes in how the underlying data are collected.
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