Innovatie en economie - Impacts of innovation

5 important questions on Innovatie en economie - Impacts of innovation

On which four main topics can innovation have an impact?

  • Innovation and business cycle
  • Innovation and employment
  • Innovation and company performance
  • Product innovation and growth

How does innovation impact employment?

New product and services have been shown to have a positive influence on employment. However, improvements in processes in either the manufacturing or the service sector can also significantly reduce labor requirements.

Why do SMEs contribute significantly to employment?

Such small firms that are generally founded to promote new technologies are important generators of new employment and consequently the policies of many governments are aimed to be particularly supportive towards SMEs, especially in regions where older industries are in decline.
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How does innovation impact company performance?

In view of the evident importance of innovation in the long run it is frustrating that efforts to establish a clear link between measures of innovation and the performance of individual companies have not been very successful.

How does product innovation impact growth?

The reliance of companies on innovation, particularly product innovation, is clear from research: they 'are increasingly relying on new products for profitability'. However, the profits that can be generated from new products do appear to be highly dependent on the particular market sector.

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