INTERNAL AND EXTERNAL DETERMINANTS OF INNOVATION CAPABILITY IN PORTUGUESE SERVICES FIRMS: A LOGIT APPROACH

Abstract

This research examined the degree of importance of factors internal and external determinants of innovative company, under the Portuguese service companies. Based on the literature has built up a conceptual model and hypotheses were formulated several research have been tested empirically, using the secondary data provided by the Center for Science  and Higher Education (OCES), belonging to the 4th Community Innovation Survey (CIS 4), supervised by EUROSTAT. The method was to use logistic regression. According to the results, as greater financial investment in internal  research activities and development in acquisition of external knowledge and marketing activities in the greater propensity of firms to innovate at the level of services. The results allow a joint analysis of the factors that promote and restrict the innovative capacity of service companies, which identify the main determinants and improve the knowledge on innovation in services. The contribution of the results refers to the identification of which factors are really important in stimulating innovation in service firms.