Innovative firms outpace non-innovative ones in growth, study finds.
The study looked at whether companies that come up with new ideas grow more than those that don't. They used data from French industries between 1992 and 2004 and tried different ways to analyze it. The results showed that firms that innovate tend to grow more than those that don't. When looking at different types of innovation, firms that improve their processes tend to grow more than those that create new products in some models, but the opposite is true in others. Overall, the study found that innovation generally leads to more growth for companies, but the exact impact depends on the type of innovation.