On the Examination of the Role of Innovation Efficiency in ICT’s Firm Turnover : A Stochastic Frontier Approach With Discrete Variables

This article examines the impact of innovation efficiency on Greek ICT’s firm performance when innovation efficiency arises from an application of Stochastic Frontier Approach (SFA) with discrete variables. Using the Greek wave of Community Innovation Survey (CIS 2012-2014 microdata), the present research finds that the firms of ICT sector are absolutely innovative efficient and operate at the innovation production frontier. In addition, innovation efficiency has a positive and significant contribution to ICT’s firm turnover. From the other variables, the expenditures in intramural and extramural R&D as well as the R&D expenditures for acquisition of machinery have negative and insignificant effects on ICT firm turnover. In contrast, it is the labor and people dimension of innovation which has a positive and significant influence on ICT firm performance