Analysis of the Link Between Investment in Innovation and the Performance of Companies in the European Union

Authors : Alin-Ionuț Dorobanțu

Volume/Issue : Volume 7 - 2022, Issue 8 - August

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Along with the evolution of technology, the need for continuous innovation has become a topic of great interest for companies, this being a key point, both in the struggle for competition and survival on the market, and from the desire of the managers, of the respective companies, to obtain increased financial performance, thus causing them to adapt to new conditions through continuous innovation, which is based on investments. The understanding of the diversity of definitions given to the term innovation is a very broad one in the scientific literature, being both modern and classic authors who define innovation in different ways. In the literature review, the common point of the understanding of innovation is change, which takes place continuously and unceasingly, leading to new results, creating new needs, and as a consequence, new markets for the products and services resulting from the change process. The research paper consists of analyzing the relationship between investments in innovation and the performance of companies in the European Union. The research method used involves panel data analysis, applied to sample data, determined using the EViews statistical program. The scientific approach carried out has as its objective the desire to highlight the link between the investments made by the companies for innovation and the performances obtained by them, following the investments, from a financial-accounting perspective. The research results indicate that investments in innovation have a positive impact on the performance of companies making such investments.

Keywords : Investment in innovation; intangible assets; research and development; operating profit; sales; goodwill


Paper Submission Last Date
31 - March - 2024

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