MANAGERIAL EFFICIENCY AND THE SCHUMPETERIAN LINK BETWEEN SIZE, MARKET-STRUCTURE AND INNOVATION REVISITED

This research uses a unique survey on innovation conducted in Belgian high-tech industries to investigate (a) the effects of managerial effi ciency on the firm's innovative activity; and (b) the effects of contr olling explicitly for managerial efficiency on the Schumpeterian-like relationship that firm size and market concentration are both conduciv e to innovation. The key findings are: managerial efficiency is an imp ortant determinant of the firm's innovation performance; only when one controls for managerial variables considered as success factors for i nnovation, the Schumpeterian effect of the impact of the firm's market share emerges for a wide range of measures of performance, which conf irms Rothwell's suggestion [18] that small firms have a advantage in t he management of their innovation.