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on Economics of Strategic Management |
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Issue of 2026–05–11
two papers chosen by João José de Matos Ferreira, Universidade da Beira Interior |
| By: | Yojiro Ito (Director and Senior Economist, Institute for Monetary and Economic Studies, Bank of Japan (E-mail: youjirou.itou@boj.or.jp)); Harumasa Shirakawa (Economist, Institute for Monetary and Economic Studies, Bank of Japan (E-mail: harumasa.shirakawa@boj.or.jp)) |
| Abstract: | The invention of new goods or services, called product innovation, and improvements in production processes, called process innovation, can have distinct impacts on firm performance. By integrating firm-level innovation survey data with financial panel data in Japan, our empirical analysis yields two key findings. First, the increasing prevalence of process innovation over product innovation has been observed over the past two decades. Second, higher market growth stimulates product innovation, which, in turn, contributes to growth in firm sales and employment over several years. In contrast, no such patterns are observed for process innovation. These results suggest that there may be a positive feedback loop between product innovation and firm growth. |
| Keywords: | Economic Growth, Productivity, Product Innovation, Process Innovation |
| JEL: | D22 L1 L25 L53 O25 O31 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:ime:imedps:25-e-18 |
| By: | Yanrui Wu (Department of Economics, Business School, University of Western Australia) |
| Abstract: | This paper presents a review of the nexus between digital transformation and innovation using evidence from China. It explores the general literature in this field as well as China-specific studies. The trend of digital transformation and innovation is assessed by using Chinese and global data. It also provides new evidence about the nexus between digital transformation and innovation using Chinese regional data. |
| Keywords: | digital transformation, innovation, measurement, nexus, Chinese regions, global perspectives |
| JEL: | O31 O33 R11 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:uwa:wpaper:26-02 |