The impact of knowledge spillovers and innovation on firm-performance: findings from the Balkans countries |
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Authors: | Veland Ramadani Hyrije Abazi-Alili Léo-Paul Dana Gadaf Rexhepi Sadudin Ibraimi |
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Affiliation: | 1.Faculty of Business and Economics,South-East European University,Tetovo,Republic of Macedonia;2.CERGE-EI,Prague,Czech Republic;3.Montpellier Research in Management,Montpellier Business School,Montpellier,France;4.Marie Curie Fellow at Princeton University,Princeton,USA |
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Abstract: | This paper investigates factors affecting firm performance. Using data from Business Environment and Enterprise Performance Surveys (BEEPS 2013–2014), findings indicate that the following have a positive effect on firm performance: (i) innovative activities; (ii) knowledge spillovers; (iii) foreign ownership; and (iv) the proportion of skilled workers in the workforce. The paper therefore argues that innovation activities are endogenously related to firm performance, and that the performance of firms is influenced by knowledge spillovers and innovation activities, among other firm characteristics. The paper contributes to the literature by identifying spillovers and innovation activities as causal variables of firm performance—a novel approach to investigating knowledge spillovers and innovation activities. |
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