The literature review on Corporate innovation

Abstract

Innovation plays a substantial role in value creation and economic development. Given its importance, this paper systematically reviews the determinants and consequences of corporate innovation. This paper finds the factors mainly related to business management and the economic sphere, including strategic management, innovation, competitive environment, intrapreneurship, corporate governance, leadership, industry influences, and cultural factors. The consequences of corporate innovation can be summarised in terms of the company's financial position and risk management, like the risk of a share price crash, more internal financing, and the company staying ahead of the curve. This paper enriches the literature on corporate innovation by systematically summarizing the factors affecting innovative activities. The paper presents a comprehensive analysis of the implications that listed firms and the government can consider to promote or facilitate corporate innovation. Firms can foster innovation by investing in R&D, fostering a culture of creativity and experimentation, and collaborating with external partners. The government can promote a culture of innovation that drives progress and growth by offering funding, tax incentives, and regulatory frameworks that incentivize companies to invest in new technologies and ideas. Overall, the paper underscores the importance of innovation in driving economic growth and offers practical recommendations for firms and policymakers to foster innovation and competitiveness.