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The impact of innovation activities on the performance and competitiveness of   firms, industries, and nations has been a matter of considerable interest   over the past few decades. The existing empirical work has widened our   knowledge of the complexity of the innovation process and its impact on the   ability of firms to compete. This study investigates how knowledge spillovers   generated through firms’ innovation activities affect the ability of their   industries to compete in terms of quality. The data from the Community   Innovation Survey 2006 for several EU member and candidate countries that   have recently become available are combined with other EU-wide datasets to   create an industry database containing information on innovation activities   and performance at industry level. A simultaneous equations framework is used   to examine the interdependencies between knowledge spillovers, innovation   activities, quality upgrading, and the market share of industries from the   selected countries in the single European market. The results of the   investigation provide support for the relationship between innovation,   quality upgrading, and market share of industries, and point to several types   of spillover which are relevant for the competitiveness of national   industries in EU member states

Knowledge spillovers, innovation activities, and competitiveness of industries in EU member and candidate countries