Innovation activities and R&D investments as determinants of ongoing or abandoned activities

Abstract

Purpose The purpose of this paper is to explore the effects of R&D investment as a determinant of ongoing or abandoned innovation activities. The literature review focuses especially small and medium-sized enterprises (SMEs) that deploy R&D investment as a way of developing innovation processes. Design/methodology/approach This study’s design used a sample of 4,229 Portuguese SMEs to analyse the effects R&D investment has on the innovation activities; the results obtained demonstrate the great importance of firms investing in R&D internal activities for the development of their innovation process. Findings The most important findings highlight the types of activities that emerge as relevant to innovation processes susceptible for development to avoid abandoning and maintaining ongoing innovation activities. Among them, the authors would highlight the design of products or services, the introduction of innovations to the market and the acquisition of machinery, equipment and specific software, among others. Originality/value In addition, other types of activities emerge as relevant to innovation processes susceptible for development to avoid abandoning and maintaining ongoing innovation activities. This research adds value to the current literature mainly showing several determinants related to R&D, which could be used by SMEs to improve and develop their activities of innovation.