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Industrial and Corporate ChangeVolume 21, Issue 3, June 2012, Article number dtr051, Pages 553-585

Innovation strategies as a source of persistent innovation(Article)(Open Access)

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  • aNordland Research Institute, N-8027 Bodø, Norway
  • bCenter for Collaborative Research, Turku School of Economics, Utrecht University, School of Economics, University of Turku, FI-20014, Turku, Finland
  • cCenter for Technology, Innovation and Culture (TIK), University of Oslo, PO Box 1108, Blindern, Oslo 0317, Norway
  • dDepartment of Economics, Maastricht University, PO Box 616, NL-6200 MD Maastricht, Netherlands

Abstract

An important topic in the recent literature on firms' innovation is the question of whether, and to what extent, firms which innovate once have a higher probability of innovating again in subsequent periods. This phenomenon is called the "persistence of innovation." Although the literature has established that innovation persistence is indeed important from an empirical point of view, relatively little attention has been paid to identifying the reasons why this is the case. In this article, we contribute to the literature by proposing that differences in innovation strategies across firms are an important driving force behind innovation persistence. We analyses this issue using a panel database constructed from R&D and Community Innovation Surveys in Norway. Empirical measures of five innovation strategies are identified by means of an inductive method: ad hoc, supplier based, market driven, R&D intensive and science based. A dynamic random effects probit model is used to estimate whether and to what extent these innovation strategies are a source of persistent innovation. The results support the idea that the differences in innovation strategies across firms are an important determinant of the firms' probability to repeatedly innovate. More concretely, we found that firms pursuing the strategies "market driven,", "R&D intensive," and "science based" were more likely to be persistent innovators. We also distinguish the effects of strategy differences on the persistence of product and process innovation in all firms, and within high-tech versus low-tech firms. © The Author 2011. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved.

Indexed keywords

GEOBASE Subject Index:corporate strategyhigh technology industryinnovationresearch and development
Regional Index:Norway
  • ISSN: 09606491
  • Source Type: Journal
  • Original language: English
  • DOI: 10.1093/icc/dtr051
  • Document Type: Article

  Pohjola, M.; Center for Collaborative Research, Turku School of Economics, Utrecht University, School of Economics, University of Turku, FI-20014, Finland;
© Copyright 2012 Elsevier B.V., All rights reserved.

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