Abstract

In the context of this paper we examine the relationship among innovation expenditure, Information and Communication Technologies (ICT) investment and productivity for Greece. We test the hypotheses that innovation expenditure and ICT investment are related non-linearly to productivity (in terms of sales per employee), forming a U-shaped curve, at the firm level, in the short-term period. The emphasis in the literature is clearly on an increasing relevance of knowledge and innovation as an input to production and innovative processes. The growing importance of knowledge as a production factor can be explained by the accumulation of technical knowledge over time, and by the use of ICT that makes that knowledge available very rapidly on a worldwide scale. While innovation activity is not the only factor influencing competitiveness, it is generally accepted that it can lead to an increase in competitiveness. It is therefore of interest, to look at the productivity problems faced by enterprises when trying to carry out innovation. The analysis is based on the data set of the research: Women and Innovation: Determinant factors and obstacles of innovative activities of Greek firms, 2004-2006, ARCHIMEDES research project, Technological Educational Institute of Athens, Greece.