Innovation through R&D activities in the European context: antecedents and consequences

David Urbano*, Andreu Turro, Sebastian Aparicio

*Corresponding author for this work

Research output: Contribution to journalArticleResearchpeer-review

12 Citations (Scopus)


Despite the fact that the determinants and the consequences of R&D activities have been extensively studied in previous research, further efforts to integrate disparate streams of literature might bring new insights into innovation decision-making by firms. In particular, this article studies the simultaneous effects that a set of factors (at both company and environmental levels of analysis) have on R&D activity, which explain firm growth. A two-stage probit least squares (2SPLS) estimation is applied to data from the EU-EFIGE/Bruegel-UniCredit dataset for seven European countries for the years 2007–2009. The main findings show that not all the R&D determinants lead to firm growth. In particular, R&D activities are affected by the employment of a significant number of foreign executives, a higher percentage of employees with fixed-term contracts, appropriate labour regulations and access to employees who have received external training, all of which are positively related to firm growth. Based on these results, policy and practical implications to improve firms’ performances are discussed.

Original languageEnglish
Pages (from-to)1481-1504
Number of pages24
JournalJournal of Technology Transfer
Issue number5
Publication statusPublished - 1 Oct 2020


  • Firm growth
  • Innovation
  • Institutional economics
  • R&D management
  • Resource-based theory


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