2. Linking investment, innovation and
productivity
Source: Roper, S (2018) Exploring the links between design investment, innovation and productivity, ERC
Insight paper, forthcoming. Research funded by the Design Council
Design engagement
increases the
probability of
innovating by around a
third or by 8 pp
3. Research Questions
1. What drives innovation in SMEs? How important is
R&D? Analysis by sector and size.
2. Which types of innovation (NTM, NTF, organisational
strategic etc.) have the greatest productivity payoffs?
3. How do these payoffs vary depending on whether the
innovation was publicly or privately funded?
4. How does the use of formal intellectual property
protection influence these payoffs?
4. Building blocks
Key insights
Rosenbusch, N.; J. Brinckmann; and A.
Bausch. 2011.
Benefits of innovation are contextual sector
matters as does ambition and the stage of
development of the firm
Vahter, P.; J.H. Love; and S. Roper. 2014. Small firms are different in terms of the
returns to innovation and collaboration
Vanino, E.; B. Becker; and S. Roper.
2017.
Public policy impacts vary by type of support,
firm size etc.
Czarnitzki, D. and C. Lopes-Bento. 2014. Public and private payoffs may vary –
complementarity between EU and national
funding
Hervas-Oliver, J. L., Sempere-Ripoll, F.,
Boronat-Moll, C., & Rojas, R. (2015).
Innovation without R&D – collaboration and
management investment can act as
substitutes
5. Data sources
RQ1 What drives innovation in SMEs? How important is R&D? Analysis by sector and
size.
RQ2 Which types of innovation (NTM, NTF, organisational strategic etc.) have the
greatest productivity payoffs?
UK innovation survey – add 2017 survey and use the panel and cross-sectional
elements of the survey. BSD match for longer-term productivity payoffs. Micro-
business data for micros
RQ3 How do these payoffs vary depending on whether the innovation was publicly or
privately funded?
UK innovation survey/ BSD matched with GtR data and also region/national/EU
government funding indicators in UKIS
RQ4 How does the use of formal intellectual property protection influence these
payoffs?
UKIS/BSD/GtR data matched with IPO data on formal protection mechanisms
6. Project timeline
Research question Timing
Publicly and privately funded R&D impacts – an initial look July 2018, ERC Insight
Paper
What drives innovation in SMEs? How important is R&D?
Analysis by sector and size.
September, Research
Paper 1
Which types of innovation (NTM, NTF, organisational
strategic etc.) have the greatest productivity payoffs?
Nov/Dec, ERC Research
Paper 2
How do these payoffs vary depending on whether the
innovation was publicly or privately funded?
Nov/Dec, ERC Research
Paper 2
How does the use of formal intellectual property
protection influence these payoffs?
February, ERC Research
Paper 3
7. References
Rosenbusch, N.; J. Brinckmann; and A. Bausch. 2011. Is innovation always beneficial? A meta-
analysis of the relationship between innovation and performance in SMEs. Journal of Business
Venturing 26:441-457.
Vahter, P.; J.H. Love; and S. Roper. 2014. Openness and Innovation Performance: Are Small Firms
Different? Industry and Innovation 21:553-573.
Vanino, E.; B. Becker; and S. Roper. 2017. Assessing the business performance effects of receiving
publicly-funded science, research and innovation grants. ERC Research Paper
Czarnitzki, D. and C. Lopes-Bento. 2014. Innovation Subsidies: Does the Funding Source Matter for
Innovation Intensity and Performance? Empirical Evidence from Germany. Industry and Innovation
21:380-409.
Hervas-Oliver, J. L., Sempere-Ripoll, F., Boronat-Moll, C., & Rojas, R. (2015). Technological
innovation without R&D: unfolding the extra gains of management innovations on technological
performance. Technology Analysis & Strategic Management, 27(1), 19-38.