Barriers to Innovation and the Innovative Performance of Portuguese Firms
Keywords:
Barriers to Innovation, Networks, Innovative Capacity, CIS
Abstract
This paper aims to identify and analyze the main limiting factors of innovation performance in terms of product and process innovation. The limiting factors to innovation make the innovation process of a firm difficult, which influences its innovation performance. The goal of this essay is to develop a theoretical support based on current reference approaches, corroborated by empirical support, which allows for the identification and analysis of the factors that restrict innovation activity and innovation performance.The database is extracted from the Community Innovation Survey - CIS 2010, which was conducted under the responsibility of the Office of Planning, Strategy, Evaluation and International Relations/Ministry of Science, Technology and Higher Education (GPEARI/MCTES), in collaboration with the National Statistics Institute (INE), under the supervision of EUROSTAT. We have developed a logistic regression model that highlights the barriers to innovation and identifies the factors that limit innovation performance.The analysis suggests that several barriers to innovation influence the Innovative performance of Portuguese firms. These results may be attributed to the fact that perceived barriers stimulate the firm to overcome these difficulties, which promotes the internal propensity to innovate. The most significant barriers identified in the study are the following: high innovation costs and perceived uncertainties in both the demand and market for new goods and services. This study shows that firms that do not have either qualified personnel to carry out innovation activities or sufficient market information are less likely to innovate than firms that do not experience these difficulties.Downloads
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References
Amara, N., D’Este, P., Landry, R., Doloreux, D. (2016), Impacts of obstacles on innovation patterns in KIBS firms. Journal of Business Research.
Euchner, J. (2015). Declining barriers to innovation. Research Technology Management, November-December, 10-11.
Hidalgo, A., D’Alvano, L. (2014). Service innovation: Inward and outward related activities and cooperation model. Journal of Business Research, 67, 698-703.
Hölzl, W., Janger, J. (2014). Distance to the frontier and the perception of innovation barriers across European countries. Research Policy, 43, 707-725.
Lewandowska, M. (2014). Innovation barriers and international competitiveness of enterprises from Polish food processing industry. Research Results. ACTA Scientiarum Polonorum Oeconomia, 13(14), 103-113.
Perel, M. (2002). Corporate courage: Breaking the barrier to innovation. Research Technology Management, May-June, 9-17.
Saatcioglu, O., Ozmen, O. (2010). Analyzing the barriers encountered in innovation process through interpretative structural modelling: evidence from Turkey. Yonetim Ve Ekonomi, 17(2), 207-225.
Thakur, R., Hale, D. (2013). Service innovation: A comparative study of U.S. and Indian service firms. Journal of Business Research, 66, 1108-1123.
Amara, N., D’Este, P., Landry, R., Doloreux, D. (2016), Impacts of obstacles on innovation patterns in KIBS firms. Journal of Business Research.
Arora, A., Cohen, W. M., & Walsh, J. P. (2016). The acquisition and commercialization of invention in American manufacturing: incidence and impact. Research Policy, 45(6), 1113-1128.
Baldwin, J., & Lin, Z. (2002). Impediments to advanced technology adoption for Canadian manufacturers. Research policy, 31(1), 1-18.
CIS methodological, (2010). The methodological document of Community Innovation Survey 2010, Accessed in June of 2015: (https://www.ine.pt/investigadores/DOCMET_13_1_CIS_2010.pdf).
CIS, (2010). “Inquérito Comunitário à Inovação (Community Innovation Survey)”, Gabinete de Planeamento, Estratégia, Avaliação e Relações internacionais, Ministério da Ciência, Tecnologia e Ensino Superior.
Clark, D. N. (2010). Innovation management in SMEs: active innovators in New Zealand. Journal of Small Business & Entrepreneurship, 23(4), 601-619.
Cohen, W. M., & Levinthal, D. A. (1989). Innovation and learning: the two faces of R & D. The economic journal, 99, 569-596.
Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: a new perspective on learning and innovation. Administrative science quarterly, 35(1), 128-152.
Conceição, P., & Ávila, P. (2001). A Inovação em Portugal - II Inquérito Comunitário às Actividades de Inovação. Oeiras: Celta Editora.
D’Este, P., Iammarino, S., Savona, M., & von Tunzelmann, N. (2012). What hampers innovation? Revealed barriers versus deterring barriers. Research Policy, 41(2), 482-488.
De Faria, P., Lima, F., & Santos, R. (2010). Cooperation in innovation activities: The importance of partners. Research Policy, 39(8), 1082-1092.
Elche-Hotelano, D. (2011). Sources of knowledge, investments and appropriability as determinants of innovation: An empirical study in service firms. Innovation, 13(2), 220-235.
Franco, M. J. (2003). Collaboration among SMEs as a mechanism for innovation: an empirical study. New England Journal of Entrepreneurship, 6(1), 23-32.
Freel, M. S., & Harrison, R. T. (2006). Innovation and cooperation in the small firm sector: Evidence from ‘Northern Britain’. Regional Studies, 40(4), 289-305.
Frenkel, A. (2003). Barriers and Limitations in the Development of Industrial Innovation in the Region. European Planning Studies, 11(2), 115-137.
Fukugawa, N. (2006). Determining factors in innovation of small firm networks: A case of cross industry groups in Japan. Small Business Economics, 27(2-3), 181-193.
Galia, F., & Legros, D. (2004). Complementarities between obstacles to innovation: evidence from France. Research Policy, 33(8), 1185-1199.
Hadjimanolis, A. (1999). Barriers to innovation for SMEs in a small less developed country (Cyprus). Technovation, 19(9), 561-570.
Hidalgo, A., D’Alvano, L. (2014). Service innovation: Inward and outward related activities and cooperation model. Journal of Business Research, 67, 698-703.
Hoffman, K., Parejo, M., Bessant, J., & Perren, L. (1998). Small firms, R&D, technology and innovation in the UK: a literature review. Technovation,18(1), 39-55.
Hölzl, W., Janger, J. (2014). Distance to the frontier and the perception of innovation barriers across European countries. Research Policy, 43, 707-725.
Kam, W. P., Kiese, M., Singh, A., & Wong, F. (2003). The pattern of innovation in Singapore's manufacturing sector. Singapore Management Review, 25(1), 1-34.
Kaufmann, A., & Tödtling, F. (2001). Science–industry interaction in the process of innovation: the importance of boundary-crossing between systems. Research policy, 30(5), 791-804.
Kenny, B., & Reedy, E. (2006). The impact of organisational culture factors on innovation levels in SMEs: An empirical investigation. Irish Journal of Management, 27(2), 119-142.
Lewandowska, M. (2014). Innovation barriers and international competitiveness of enterprises from Polish food processing industry. Research Results. ACTA Scientiarum Polonorum Oeconomia, 13(14), 103-113.
Madrid‐Guijarro, A., Garcia, D., & Van Auken, H. (2009). Barriers to innovation among Spanish
Marques, C., & Monteiro-Barata, J. (2005). Determinantes de inovação e desempenho económico - financeiro: Ensaio para a Indústria Transformadora Portuguesa. In 4th International Meeting of the Iberoamerican Academy of Management, Lisboa, Portugal, 8 a 11 de Dezembro, 2005. Faculdade de Economia: Universidade Nova de Lisboa.
Marques, C., & Monteiro-Barata, J. (2006). Determinants of the innovation process: An empirical test for the Portuguese manufacturing industry. Management Research: Journal of the Iberoamerican Academy of Management, 4(2), 113-126.
Meijer, A. (2015). E-governance innovation: Barriers and strategies.Government Information Quarterly, 32(2), 198-206.
Mention, A. L. (2011). Co-operation and co-opetition as open innovation practices in the service sector: which influence on innovation novelty?. Technovation, 31(1), 44-53.
Najda-Janoszka, M., & Kopera, S. (2014). Exploring barriers to innovation in tourism industry–The case of southern region of Poland. Procedia-Social and Behavioral Sciences, 110, 190-201.
Nunes, A. (2008). Barreiras à capacidade inovadora empresarial: estudo nas empresas portuguesas, Dissertação de Mestrado, Universidade da Beira Interior, Covilhã
Nunes, A., & Silva, M. J. (2010). Constrangimentos Económicos e de Mercado na Capacidade Inovadora das Empresas Portuguesas: Evidências Empíricas ao Nível da Inovação no Processo. In Proceedings of XX Luso - Spanish Conference on Management, 4-5 February, 2010. Instituto Politécnico de Setúbal, Portugal.
Nunes, S., Carvalho, L., & Costa, T. (2013). Cooperation for innovation: evidence from southern European countries. International Journal of Innovation and Regional Development 7, 5(2), 226-241.
OCDE (2005). OSLO Manual: Proposed Guidelines for Collecting and Interpreting Technological Innovation Data (3rd ed.). Paris: OECD Publishing. doi: http://dx.doi.org/10.1787/9789264013100-en.
Parrilli, M. D., & Heras, H. A. (2016). STI and DUI innovation modes: Scientific-technological and context-specific nuances. Research Policy,45(4), 747-756.
Porter, M. E. (1990). The Competitive Advantage of Nations. New York: Macmillan.
Romijn, H., & Albaladejo, M. (2002). Determinants of innovation capability in small electronics and software firms in southeast England. Research policy, 31(7), 1053-1067.
Saatcioglu, O., Ozmen, O. (2010). Analyzing the barriers encountered in innovation process through interpretative structural modelling: evidence from Turkey. Yonetim Ve Ekonomi, 17(2), 207-225.
Sawang, S., & Matthews, J. H. (2010). Positive relationships among collaboration for innovation, past innovation abandonment and future product introduction in manufacturing SMEs. Interdisciplinary Journal of Contemporary Research in Business, 2(6), 106-117.
Segarra-Blasco, A., Garcia-Quevedo, J., & Teruel-Carrizosa, M. (2008). Barriers to innovation and public policy in Catalonia. International entrepreneurship and management journal, 4(4), 431-451.
Silva, M. J., Leitão, J., & Raposo, M. (2008). Barriers to innovation faced by manufacturing firms in Portugal: how to overcome it for fostering business excellence?. International Journal of Business Excellence, 1(1-2), 92-105.
Silva, M. J., Campos, M. I. M., & Nunes, A. (2009). Barriers to Innovation and Entrepreneurial Innovation Capability: Empirical Evidence From Portuguese CIS Data at the Product Innovation Level. In ECEI2009-4th European conference on entrepreneurship and innovation: ECEI2009 (p. 440). Academic Conferences Limited.
Simões, V.C. (1996). Inovação e Gestão em PME Industriais Portugueses: Relatório Técnico. Lisboa: GEP - Gabinete de Estudos e Planeamento do Ministério da Economia.
Song, C., & Oh, W. (2015). Determinants of innovation in energy intensive industry and implications for energy policy. Energy Policy, 81, 122-130.
Thakur, R., Hale, D. (2013). Service innovation: A comparative study of U.S. and Indian service firms. Journal of Business Research, 66, 1108-1123.
Tourigny, D., & Le, C. D. (2004). Impediments to innovation faced by Canadian manufacturing firms. Economics of Innovation and New Technology, 13(3), 217-250.
Ussman, A., Almeida, A., Ferreira, J., Mendes, L., & Franco, M. (2001). SMEs and innovation: Perceived barriers and behavioural patterns. The International Journal of Entrepreneurship and Innovation, 2(2), 111-118.
Varis, M., & Littunen, H. (2010). Types of innovation, sources of information and performance in entrepreneurial SMEs. European Journal of Innovation Management, 13(2), 128-154.
Vermeulen, P. A. (2005). Uncovering Barriers to Complex Incremental Product Innovation in Small and Medium‐Sized Financial Services Firms. Journal of Small Business Management, 43(4), 432-452.
Xie, X. M., Zeng, S. X., & Tam, C. M. (2010). Overcoming barriers to innovation in SMEs in China: A perspective based cooperation network. Innovation, 12(3), 298-310.
Yu, X., Yan, J., & Assimakopoulos, D. (2015). Case analysis of imitative innovation in Chinese manufacturing SMEs: Products, features, barriers and competences for transition. International Journal of Information Management, 35(4), 520-525.
Zwick, T. (2002). Employee resistance against innovations. International Journal of Manpower, 23(6), 542-552.
Euchner, J. (2015). Declining barriers to innovation. Research Technology Management, November-December, 10-11.
Hidalgo, A., D’Alvano, L. (2014). Service innovation: Inward and outward related activities and cooperation model. Journal of Business Research, 67, 698-703.
Hölzl, W., Janger, J. (2014). Distance to the frontier and the perception of innovation barriers across European countries. Research Policy, 43, 707-725.
Lewandowska, M. (2014). Innovation barriers and international competitiveness of enterprises from Polish food processing industry. Research Results. ACTA Scientiarum Polonorum Oeconomia, 13(14), 103-113.
Perel, M. (2002). Corporate courage: Breaking the barrier to innovation. Research Technology Management, May-June, 9-17.
Saatcioglu, O., Ozmen, O. (2010). Analyzing the barriers encountered in innovation process through interpretative structural modelling: evidence from Turkey. Yonetim Ve Ekonomi, 17(2), 207-225.
Thakur, R., Hale, D. (2013). Service innovation: A comparative study of U.S. and Indian service firms. Journal of Business Research, 66, 1108-1123.
Amara, N., D’Este, P., Landry, R., Doloreux, D. (2016), Impacts of obstacles on innovation patterns in KIBS firms. Journal of Business Research.
Arora, A., Cohen, W. M., & Walsh, J. P. (2016). The acquisition and commercialization of invention in American manufacturing: incidence and impact. Research Policy, 45(6), 1113-1128.
Baldwin, J., & Lin, Z. (2002). Impediments to advanced technology adoption for Canadian manufacturers. Research policy, 31(1), 1-18.
CIS methodological, (2010). The methodological document of Community Innovation Survey 2010, Accessed in June of 2015: (https://www.ine.pt/investigadores/DOCMET_13_1_CIS_2010.pdf).
CIS, (2010). “Inquérito Comunitário à Inovação (Community Innovation Survey)”, Gabinete de Planeamento, Estratégia, Avaliação e Relações internacionais, Ministério da Ciência, Tecnologia e Ensino Superior.
Clark, D. N. (2010). Innovation management in SMEs: active innovators in New Zealand. Journal of Small Business & Entrepreneurship, 23(4), 601-619.
Cohen, W. M., & Levinthal, D. A. (1989). Innovation and learning: the two faces of R & D. The economic journal, 99, 569-596.
Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: a new perspective on learning and innovation. Administrative science quarterly, 35(1), 128-152.
Conceição, P., & Ávila, P. (2001). A Inovação em Portugal - II Inquérito Comunitário às Actividades de Inovação. Oeiras: Celta Editora.
D’Este, P., Iammarino, S., Savona, M., & von Tunzelmann, N. (2012). What hampers innovation? Revealed barriers versus deterring barriers. Research Policy, 41(2), 482-488.
De Faria, P., Lima, F., & Santos, R. (2010). Cooperation in innovation activities: The importance of partners. Research Policy, 39(8), 1082-1092.
Elche-Hotelano, D. (2011). Sources of knowledge, investments and appropriability as determinants of innovation: An empirical study in service firms. Innovation, 13(2), 220-235.
Franco, M. J. (2003). Collaboration among SMEs as a mechanism for innovation: an empirical study. New England Journal of Entrepreneurship, 6(1), 23-32.
Freel, M. S., & Harrison, R. T. (2006). Innovation and cooperation in the small firm sector: Evidence from ‘Northern Britain’. Regional Studies, 40(4), 289-305.
Frenkel, A. (2003). Barriers and Limitations in the Development of Industrial Innovation in the Region. European Planning Studies, 11(2), 115-137.
Fukugawa, N. (2006). Determining factors in innovation of small firm networks: A case of cross industry groups in Japan. Small Business Economics, 27(2-3), 181-193.
Galia, F., & Legros, D. (2004). Complementarities between obstacles to innovation: evidence from France. Research Policy, 33(8), 1185-1199.
Hadjimanolis, A. (1999). Barriers to innovation for SMEs in a small less developed country (Cyprus). Technovation, 19(9), 561-570.
Hidalgo, A., D’Alvano, L. (2014). Service innovation: Inward and outward related activities and cooperation model. Journal of Business Research, 67, 698-703.
Hoffman, K., Parejo, M., Bessant, J., & Perren, L. (1998). Small firms, R&D, technology and innovation in the UK: a literature review. Technovation,18(1), 39-55.
Hölzl, W., Janger, J. (2014). Distance to the frontier and the perception of innovation barriers across European countries. Research Policy, 43, 707-725.
Kam, W. P., Kiese, M., Singh, A., & Wong, F. (2003). The pattern of innovation in Singapore's manufacturing sector. Singapore Management Review, 25(1), 1-34.
Kaufmann, A., & Tödtling, F. (2001). Science–industry interaction in the process of innovation: the importance of boundary-crossing between systems. Research policy, 30(5), 791-804.
Kenny, B., & Reedy, E. (2006). The impact of organisational culture factors on innovation levels in SMEs: An empirical investigation. Irish Journal of Management, 27(2), 119-142.
Lewandowska, M. (2014). Innovation barriers and international competitiveness of enterprises from Polish food processing industry. Research Results. ACTA Scientiarum Polonorum Oeconomia, 13(14), 103-113.
Madrid‐Guijarro, A., Garcia, D., & Van Auken, H. (2009). Barriers to innovation among Spanish
Marques, C., & Monteiro-Barata, J. (2005). Determinantes de inovação e desempenho económico - financeiro: Ensaio para a Indústria Transformadora Portuguesa. In 4th International Meeting of the Iberoamerican Academy of Management, Lisboa, Portugal, 8 a 11 de Dezembro, 2005. Faculdade de Economia: Universidade Nova de Lisboa.
Marques, C., & Monteiro-Barata, J. (2006). Determinants of the innovation process: An empirical test for the Portuguese manufacturing industry. Management Research: Journal of the Iberoamerican Academy of Management, 4(2), 113-126.
Meijer, A. (2015). E-governance innovation: Barriers and strategies.Government Information Quarterly, 32(2), 198-206.
Mention, A. L. (2011). Co-operation and co-opetition as open innovation practices in the service sector: which influence on innovation novelty?. Technovation, 31(1), 44-53.
Najda-Janoszka, M., & Kopera, S. (2014). Exploring barriers to innovation in tourism industry–The case of southern region of Poland. Procedia-Social and Behavioral Sciences, 110, 190-201.
Nunes, A. (2008). Barreiras à capacidade inovadora empresarial: estudo nas empresas portuguesas, Dissertação de Mestrado, Universidade da Beira Interior, Covilhã
Nunes, A., & Silva, M. J. (2010). Constrangimentos Económicos e de Mercado na Capacidade Inovadora das Empresas Portuguesas: Evidências Empíricas ao Nível da Inovação no Processo. In Proceedings of XX Luso - Spanish Conference on Management, 4-5 February, 2010. Instituto Politécnico de Setúbal, Portugal.
Nunes, S., Carvalho, L., & Costa, T. (2013). Cooperation for innovation: evidence from southern European countries. International Journal of Innovation and Regional Development 7, 5(2), 226-241.
OCDE (2005). OSLO Manual: Proposed Guidelines for Collecting and Interpreting Technological Innovation Data (3rd ed.). Paris: OECD Publishing. doi: http://dx.doi.org/10.1787/9789264013100-en.
Parrilli, M. D., & Heras, H. A. (2016). STI and DUI innovation modes: Scientific-technological and context-specific nuances. Research Policy,45(4), 747-756.
Porter, M. E. (1990). The Competitive Advantage of Nations. New York: Macmillan.
Romijn, H., & Albaladejo, M. (2002). Determinants of innovation capability in small electronics and software firms in southeast England. Research policy, 31(7), 1053-1067.
Saatcioglu, O., Ozmen, O. (2010). Analyzing the barriers encountered in innovation process through interpretative structural modelling: evidence from Turkey. Yonetim Ve Ekonomi, 17(2), 207-225.
Sawang, S., & Matthews, J. H. (2010). Positive relationships among collaboration for innovation, past innovation abandonment and future product introduction in manufacturing SMEs. Interdisciplinary Journal of Contemporary Research in Business, 2(6), 106-117.
Segarra-Blasco, A., Garcia-Quevedo, J., & Teruel-Carrizosa, M. (2008). Barriers to innovation and public policy in Catalonia. International entrepreneurship and management journal, 4(4), 431-451.
Silva, M. J., Leitão, J., & Raposo, M. (2008). Barriers to innovation faced by manufacturing firms in Portugal: how to overcome it for fostering business excellence?. International Journal of Business Excellence, 1(1-2), 92-105.
Silva, M. J., Campos, M. I. M., & Nunes, A. (2009). Barriers to Innovation and Entrepreneurial Innovation Capability: Empirical Evidence From Portuguese CIS Data at the Product Innovation Level. In ECEI2009-4th European conference on entrepreneurship and innovation: ECEI2009 (p. 440). Academic Conferences Limited.
Simões, V.C. (1996). Inovação e Gestão em PME Industriais Portugueses: Relatório Técnico. Lisboa: GEP - Gabinete de Estudos e Planeamento do Ministério da Economia.
Song, C., & Oh, W. (2015). Determinants of innovation in energy intensive industry and implications for energy policy. Energy Policy, 81, 122-130.
Thakur, R., Hale, D. (2013). Service innovation: A comparative study of U.S. and Indian service firms. Journal of Business Research, 66, 1108-1123.
Tourigny, D., & Le, C. D. (2004). Impediments to innovation faced by Canadian manufacturing firms. Economics of Innovation and New Technology, 13(3), 217-250.
Ussman, A., Almeida, A., Ferreira, J., Mendes, L., & Franco, M. (2001). SMEs and innovation: Perceived barriers and behavioural patterns. The International Journal of Entrepreneurship and Innovation, 2(2), 111-118.
Varis, M., & Littunen, H. (2010). Types of innovation, sources of information and performance in entrepreneurial SMEs. European Journal of Innovation Management, 13(2), 128-154.
Vermeulen, P. A. (2005). Uncovering Barriers to Complex Incremental Product Innovation in Small and Medium‐Sized Financial Services Firms. Journal of Small Business Management, 43(4), 432-452.
Xie, X. M., Zeng, S. X., & Tam, C. M. (2010). Overcoming barriers to innovation in SMEs in China: A perspective based cooperation network. Innovation, 12(3), 298-310.
Yu, X., Yan, J., & Assimakopoulos, D. (2015). Case analysis of imitative innovation in Chinese manufacturing SMEs: Products, features, barriers and competences for transition. International Journal of Information Management, 35(4), 520-525.
Zwick, T. (2002). Employee resistance against innovations. International Journal of Manpower, 23(6), 542-552.
Published
2017-10-22
How to Cite
Madeira, M. J., Carvalho, J., Miguel Moreira, J. R., Duarte, F. A., & de São Pedro Filho, F. (2017). Barriers to Innovation and the Innovative Performance of Portuguese Firms. Journal of Business, Universidad Del Pacífico (Lima, Peru), 9(1), 2-22. https://doi.org/https://doi.org/10.21678/jb.2017.822
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