Digital Transformation and Innovation: The Influence of Digital Technologies on Turnover from Innovation Activities and Types of Innovation

Abstract

In today’s competitive and globalized world, innovation is essential for organizational survival, offering a means for companies to address environmental impacts and social challenges. As innovation processes accelerate, managers need to rethink the entire value-creation chain, with digital transformation emerging as a continuous process of organizational adaptation to the evolving societal landscape. The research question focuses on how digital technologies—such as artificial intelligence, Big Data, cloud computing, industrial and service robots, and the Internet of Things—influence innovation-driven revenues among enterprises within the European Union (EU). The paper examines, using neural network analysis, the specific impact of each digital technology on innovation revenues while exploring how these technologies affect various types of social innovation within organizations. Through cluster analysis, the study identifies patterns among EU countries based on their digital technology adoption, innovation expenditures, and revenues and the proportion of enterprises engaged in innovation activities. The findings highlight the central role of digital technologies in enhancing innovation and competitiveness, with significant implications for managers and policymakers. These results underscore the necessity for companies to strategically integrate digital technologies to sustain long-term competitiveness in the rapidly evolving digital landscape of the EU.