Do innovating enterprises perform better? New evidence from frame SBS and CIS data integration

Abstract

Most of economic literature has insisted on the role of business investments in innovation as one of the key drivers of productivity and economic growth. Nowadays policymakers through the ambitious National Recovery and Resilience Plan (PNRR), have also emphasized the importance of innovation in enhancing enterprises’ competitiveness and productivity as well as in supporting the twin green and digital transformation and in building enterprises’ resilience. The aim of this study is twofold. It investigates the relationships between the enterprises’ economic performances – measured through the statistical information system for estimating structural economic variables (FRAME SBS) - and enterprises’ innovation activeness, as resulted by the European CIS survey. The second aim of this study is to give some evidence about the characteristics and performances of eco-innovators. The results from the special module on eco-innovation of the CIS 2020 confirm a strong attitude of innovators towards the introduction of new products and processes leading to less environmental impact. To integrate the two sources of business data – FRAME SBS and CIS - the calibration estimator methodology was applied. It is the same methodology adopted for the CIS estimates, but the proposed set of indicators exploits the information derived from the interaction between the two sources in substantial consistency with both. From our analysis a clear picture emerges: the innovation active enterprises showed better economic results in the COVID-19 pandemic’ context too. Italian enterprises’ productivity and profitability are strictly linked to the type and quality of innovation activities carried out. The findings also confirm that better economic performances are strongly associated with R&D-driven innovation attitude. Finally, the study suggests that better profitability and productivity are found in eco-innovators that chose business strategies aimed at implementing environmental sustainable models in the innovation process.