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Original Article Open Access
This paper focuses on the influence of decisions made by government and market structure on productivity of innovation activities. People expect state representatives to manage public resources accurately and pursuit the most desirable community's surplus in terms of economic welfare. Businesses presume policy-takers to legislate in an effort to guarantee a favorable environment, thus backing economic growth. Based on an international empirical survey conducted in five European countries, this paper finds a sound mediating effect of new service development. The higher the propensity towards innovation activities the higher the probability of obtaining benefits from competitive pressure. In fact innovation oriented firms outperform the market by converting ideas into business, as a consequence, enhancing, updating or consolidating their offer portfolio. Results stem from two structural equation models that constitute the originality of this study. Since confidence in public policies also depends on the transparency of the procedures, this paper concludes, suggesting that policy-makers shall guarantee simple regulation frameworks if they wanted concretely support firms in the light of European rules on competition.
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Author(s): Giacomo Di Foggia
Innovation activities, Competition, Applied economics, Government, NSD, Public administration, Materials Science, Bioengineering and Nanoscience