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The organisational-cooperation mode of innovation and its prominence amongst European service firms

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  • Tether, Bruce S.
  • Tajar, Abdelouahid

Abstract

Analysing survey data concerning the innovation orientations of 2500 European firms, this paper uses the exploratory statistical technique of multiple correspondence analysis to identify three distinct modes of innovation: a product-research mode; a process-technologies mode; and an organisational-cooperation mode. The first two of these are forms of technological innovation that are well established in the innovation studies literature. The third is a form of organisational innovation, about which much less is known. Aside from identifying statistically these three modes of innovation, we show that firms of different sizes and in different sectors have different propensities to engage in each of them. High-technology firms are, for example, the most likely of all firms to engage in the product-research mode, whilst low-technology manufacturers are the most likely to engage in the process-technologies mode. Meanwhile, the organisational-cooperation mode, which involves supply-chain rather than research-based cooperative practices, is particularly prominent in services, especially in trade and distribution services. This fits with the view that innovation in services is often 'soft', rather than primarily technological, involving organisational and relational changes within supply-chains or networks.

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Bibliographic Info

Article provided by Elsevier in its journal Research Policy.

Volume (Year): 37 (2008)
Issue (Month): 4 (May)
Pages: 720-739

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Handle: RePEc:eee:respol:v:37:y:2008:i:4:p:720-739

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Web page: http://www.elsevier.com/locate/respol

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References

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  1. Bruce Tether, 2005. "Do Services Innovate (Differently)? Insights from the European Innobarometer Survey," Industry and Innovation, Taylor & Francis Journals, vol. 12(2), pages 153-184.
  2. Drejer, Ina, 2004. "Identifying innovation in surveys of services: a Schumpeterian perspective," Research Policy, Elsevier, vol. 33(3), pages 551-562, April.
  3. Jensen, Morten Berg & Johnson, Bjorn & Lorenz, Edward & Lundvall, Bengt Ake, 2007. "Forms of knowledge and modes of innovation," Research Policy, Elsevier, vol. 36(5), pages 680-693, June.
  4. Zoltan Acs & David Audretsch, 1990. "Innovation and Small Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011131, January.
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  7. de Vries, Erik J., 2006. "Innovation in services in networks of organizations and in the distribution of services," Research Policy, Elsevier, vol. 35(7), pages 1037-1051, September.
  8. Tether, Bruce S., 2002. "Who co-operates for innovation, and why: An empirical analysis," Research Policy, Elsevier, vol. 31(6), pages 947-967, August.
  9. Hollenstein, Heinz, 2003. "Innovation modes in the Swiss service sector: a cluster analysis based on firm-level data," Research Policy, Elsevier, vol. 32(5), pages 845-863, May.
  10. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
  11. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, And The Demand For Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, MIT Press, vol. 117(1), pages 339-376, February.
  12. Hipp, Christiane & Grupp, Hariolf, 2005. "Innovation in the service sector: The demand for service-specific innovation measurement concepts and typologies," Research Policy, Elsevier, vol. 34(4), pages 517-535, May.
  13. Teece, David J., 1986. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," Research Policy, Elsevier, vol. 15(6), pages 285-305, December.
  14. Rod Coombs & Mark Harvey & Bruce S. Tether, 2003. "Analysing distributed processes of provision and innovation," Industrial and Corporate Change, Oxford University Press, vol. 12(6), pages 1125-1155, December.
  15. Utterback, James M & Abernathy, William J, 1975. "A dynamic model of process and product innovation," Omega, Elsevier, vol. 3(6), pages 639-656, December.
  16. Nelson, Richard R. & Sampat, Bhaven N., 2001. "Making sense of institutions as a factor shaping economic performance," Journal of Economic Behavior & Organization, Elsevier, vol. 44(1), pages 31-54, January.
  17. Djellal, Faridah & Gallouj, FaIz, 2005. "Mapping innovation dynamics in hospitals," Research Policy, Elsevier, vol. 34(6), pages 817-835, August.
  18. Rinaldo Evangelista, 2000. "Sectoral Patterns Of Technological Change In Services," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 9(3), pages 183-222.
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Citations

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Cited by:
  1. MOTHE Caroline & NGUYEN Thi Thuc Uyen, 2011. "Do firms rely on sources of information for organizational innovation?," CEPS/INSTEAD Working Paper Series 2011-39, CEPS/INSTEAD.
  2. Tether, B. & Bascavusoglu-Moreau, E., 2012. "A Different Path to Growth? Service Innovation and Performance amongst UK Manufacturers," ESRC Centre for Business Research - Working Papers wp433, ESRC Centre for Business Research.
  3. Letty, Brigid & Shezi, Zanele & Mudhara, Maxwell, 2012. "An exploration of agricultural grassroots innovation in South Africa and implications for innovation indicator development," MERIT Working Papers 023, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  4. Ki H. Kang & Jina Kang, 2009. "Do External Knowledge Sourcing Methods Matter in Service Innovation? Analysis of South Korean Service Firms," TEMEP Discussion Papers 200908, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Aug 2009.
  5. Ozer, Muammer, 2009. "The roles of product lead-users and product experts in new product evaluation," Research Policy, Elsevier, vol. 38(8), pages 1340-1349, October.
  6. Rinaldo Evangelista & Matteo Lucchese & Valentina Meliciani, 2013. "The contribution of Business services to the export performances of manufacturing industries. An empirical study on 5 European countries," Management Working Papers 14, Birkbeck Department of Management, revised Nov 2013.
  7. Caroline Mothe & Nguyen-Thi Thuc Uyen, 2012. "The impact of non-technological on technological innovations: do services differ from manufacturing? An empirical analysis of Luxembourg firms," Post-Print hal-00919216, HAL.
  8. Caroline Mothe & Thuc Uyen Nguyen-Thi, 2012. "Do firms rely on sources of information for organizational innovation?," Post-Print hal-00915142, HAL.
  9. Fernandes, Cristina & Ferreira, João, 2011. "Knowledge Spillovers and Knowledge Intensive Business Services: An Empirical Study," MPRA Paper 34751, University Library of Munich, Germany.
  10. Hidalgo, Antonio & D'Alvano, Luigi, 2014. "Service innovation: Inward and outward related activities and cooperation mode," Journal of Business Research, Elsevier, vol. 67(5), pages 698-703.
  11. Evangelista, Rinaldo & Lucchese, Matteo & Meliciani, Valentina, 2013. "Business services, innovation and sectoral growth," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 119-132.
  12. Trigo, Alexandre & Vence, Xavier, 2012. "Scope and patterns of innovation cooperation in Spanish service enterprises," Research Policy, Elsevier, vol. 41(3), pages 602-613.
  13. Love, James H. & Roper, Stephen & Bryson, John R., 2011. "Openness, knowledge, innovation and growth in UK business services," Research Policy, Elsevier, vol. 40(10), pages 1438-1452.
  14. Letty, Brigid & Shezi, Zanele & Mudhara, Maxwell, 2012. "An exploration of agricultural grassroots innovation in South Africa and implications for innovation indicator development," MERIT Working Papers 023, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  15. André van Stel & Lorraine Uhlaner & Haibo Zhou & Valerie Duplat, 2012. "Disentangling the effects of organizational capabilities, innovation and firm size on SME sales growth," Scales Research Reports H201211, EIM Business and Policy Research.
  16. Evangelista, Rinaldo & Vezzani, Antonio, 2010. "The economic impact of technological and organizational innovations. A firm-level analysis," Research Policy, Elsevier, vol. 39(10), pages 1253-1263, December.
  17. Hipp, Christiane, 2009. "Collaboration for innovation in services," Working Paper Series 7, Brandenburg University of Technology (BTU Cottbus), Chair of Organization, Human Resource & General Management.

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