Economic efficiency of wood and furniture innovation system

Purpose - The study aims to analyse the wood and furniture innovation system in the region of Thessaly, Greece, and the recording and benchmarking of innovative activity of enterprises in order to detect best practices applied, and to propose ways of increasing efficiency through improvement of the use of innovation inputs. Design/methodology/approach - Following the systemic approach, an empirical study registers the economic dimension of innovation in the enterprises of the sector in the region. The data collection is based on the Oslo manual. Based on data envelopment analysis, a benchmarking analysis of wood and furniture firms was applied by measuring the efficiency of both innovation inputs and the sector's innovation system. Findings - Efforts have to be made to import innovation into the production process by means of investment in technological equipment. Generally, an increase in innovation performance incurs an increase in sales. The efficiency of the innovation system is evaluated as adequate when the majority of firms apply innovation inputs satisfactorily. However, there is additional margin for improvement regarding R&D, staff training and the diffusion of innovation. The analysis of the innovation system at the sector level in the region may lead to a better innovation-oriented policy and decision making. Research limitations/implications - The study provides useful data concerning innovation in the sector, and the efficiency analysis proposes a benchmarking tool in order to set margins for business operation improvement. Practical implications - Industries struggle to strengthen their competitiveness in global markets. The findings show the absence of a strategy in the wood and furniture sector with regard to innovation, and utilization of the relative expenditures. Originality/value - The present study expands on previous research and knowledge, offering a profound analysis of the effects and improvement of innovative activity in the wood and furniture sector. It is a prototype research paper in Greece in relation to innovative activity in this sector.