Innovation and firm size: an empirical study for Spanish engineering consulting companies

This paper studies the influence of firm size over degree of innovation in a service sector, specifically in engineering consulting and technology services in Spain. A multiple regression analysis was used to test hypothesis about firm size positive influence over degree of innovation in services. To avoid distortions in this main relationship, three control variables were introduced (degree of standardisation, degree of customisation, and number of firm’s activities). Results seem to indicate that firm size, measured by turnover, is related positively with degree of innovation, independently of moderate influence of control variables.