Antecedent and Consequence of Innovation Output: Evidence from Thailand

The study aims to examine the impact of research and development (R&D) investment (the antecedent) on competitive advantage (the consequence) for the innovation output of private firms in Thailand. The population of this study includes all private Thai firms which have registered with the Office of National Higher Education Science Research and Innovation Policy Council. Path analysis and factor confirmation, including correlation matrix, are used to test the mediator effect of innovation output on the relationship between R&D investment and firm performance competitive advantage. The research data are tested and analyzed by the structure equation model. The results reveal that R&D investment was not found to directly influence competitive advantage, while R&D investment indirectly affects competitive advantage through innovation output. The findings of this study demonstrate that innovative output plays a mediating role between R&D investment and competitive advantage. In addition, dynamic capability theory can be used to explain the influences of R&D investment and innovation output on competitive advantage for private firms in Thailand.