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It has long been recognized that innovation plays a crucial role to support the economic performance of manufacturing firms. By contrast, the innovation in service is considered to be a less-studied topic and the empirical frameworks in this context are rather rare. As a way to overcome this gap, we analyze, in this paper, the impact of the innovation activities on the performance of the Tunisian service firms. We use the Heckman's two-stage econometric model in order to identify the contribution of service innovation to enhance the firms' performance (productivity, sales growth and employment growth). Based upon a sample of 71 Tunisian service firms, having significant value-added services, we show that innovation has a positive and significant effect on the productivity and on the employment growth. However, innovation has no effect on the sales' growth.

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes.You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an OpenContent Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. www.econstor.euThe views and opinions expressed here reflect the authors' point of view and not necessarily those of CASE Network. This paper has been prepared within the project on the economic integration of the Euro-Med region under the contract with the European Commission (TRADE08/C2/C16). The study was conducted by a consortium of CASE -Center for Social and Economic Research and CEPS -The Center for European Policy Studies. The content of this publication is the sole responsibility of the authors and can in no way be taken to reflect the views of the European Union or any other institutions the authors may be affiliated to.Publication was financed from the CASE Academic Excellence Program.Keywords: EU, Mediterranean, regional integration, non-tariff barriers, international trade, investment, business perception survey The CASE Network is a group of economic and social research centers in Poland, Kyrgyzstan, Ukraine, Georgia, Moldova, and Belarus. Organizations in the network regularly conduct joint research and advisory projects. The research covers a wide spectrum of economic and social issues, including economic effects of the European integration process, economic relations between the EU and CIS, monetary policy and euro-accession, innovation and competitiveness, and labour markets and social policy. The network aims to increase the range and quality of economic research and information available to policy-makers and civil society, and takes an active role in on-going debates on how to meet the economic challenges facing the EU, post-transition countries and the global economy.The CASE network consists of: The authorsLuc De Wulf is a Belgian national with a doctorate degree in economics from Clark University , Worcester Mass. USA. He worked as economist for the International Monetary Fund (till 1988) before joining the World Bank from where he retired in 2000. As independent consultant he has since worked for the World Bank, DIFD and the European Commissio...