Authors: Sotiria Schoina, Petros Kalantonis

Title: Innovation and firms’ performance in the era of crisis

Abstract

In the prior literature innovation has been recognized as a competitive advantage of firms. Specifically, innovative firms  develop more strategic  & organizational skills than non innovation oriented firms. (OECD, 2005).

We examine, in this study, the effect of innovation on firms’ performance in the period of financial crisis. Using financial data of the listed firms in the Athens Stock Exchange for the financial probation period of the Greek Economy, we search for significant differences on the financial performance between innovation & non-innovation oriented firms. Greece is one of the most affected countries from the  global economic crisis.  Comparing our findings with those of prior relevant literature we discuss how innovation can help firms limit negative consequences of the recent  financial crisis.

Keywords: financial crisis, profitability, innovation, financial information