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What hampers innovation? Revealed barriers versus deterring barriers

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  • D’Este, Pablo
  • Iammarino, Simona
  • Savona, Maria
  • von Tunzelmann, Nick

Abstract

Innovating firms are likely to face several challenges and experience different types of barriers. In this paper we argue that it is necessary to distinguish between two kinds of barriers to innovation. The first corresponds to what we describe as revealed barriers and reflects the degree of difficulty of the innovation process and the learning experience consequent on the firm engaging in innovation activity. The second type of impediment, which we label deterring barriers, encompasses the obstacles that prevent firms from committing to innovation. We use data from the 4th UK Community Innovation Survey (CIS4) to investigate the relationship between firms’ engagement in innovation and their assessment of the barriers to innovation. We show that the relationship is curvilinear in the case of costs and market barriers. These results have important implications for innovation policy and innovation management.

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Bibliographic Info

Article provided by Elsevier in its journal Research Policy.

Volume (Year): 41 (2012)
Issue (Month): 2 ()
Pages: 482-488

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Handle: RePEc:eee:respol:v:41:y:2012:i:2:p:482-488

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

Related research

Keywords: Barriers to innovation; Engagement in innovation activities; Innovative firms; Non-innovators;

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References

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  10. Mohnen, Pierre & Tiwari, Amaresh & Palm, Franz & Schim van der Loeff, Sybrand, 2007. "Financial Constraint and R&D Investment: Evidence from CIS," MERIT Working Papers 011, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
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  15. Rebecca Henderson, 1993. "Underinvestment and Incompetence as Responses to Radical Innovation: Evidence from the Photolithographic Alignment Equipment Industry," RAND Journal of Economics, The RAND Corporation, vol. 24(2), pages 248-270, Summer.
  16. Galia, Fabrice & Legros, Diego, 2004. "Complementarities between obstacles to innovation: evidence from France," Research Policy, Elsevier, Elsevier, vol. 33(8), pages 1185-1199, October.
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Citations

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Cited by:
  1. D'Este,Pablo & Rentocchini,Francesco & Vega Jurado,Jaider M., 2012. "The role of human capital in lowering barriers to engage in innovation: evidence from the Spanish innovation survey," INGENIO (CSIC-UPV) Working Paper Series 201206, INGENIO (CSIC-UPV), revised 03 Aug 2012.
  2. Werner Hölzl & Jürgen Janger, 2012. "Innovation Barriers across Firms and Countries," WIFO Working Papers, WIFO 426, WIFO.
  3. Neil Lee, 2014. "What holds back high-growth firms? Evidence from UK SMEs," Small Business Economics, Springer, Springer, vol. 43(1), pages 183-195, June.
  4. Hölzl, Werner & Janger, Jürgen, 2014. "Distance to the frontier and the perception of innovation barriers across European countries," Research Policy, Elsevier, Elsevier, vol. 43(4), pages 707-725.
  5. Heinz Hollenstein & Martin Berger, 2012. "Determinants of Equity-based and Co-operative Foreign R&D and Impact on the Parent Firm’s Performance," KOF Working papers 12-305, KOF Swiss Economic Institute, ETH Zurich.
  6. Padilla-Pérez, Ramón & Gaudin, Yannick, 2014. "Science, technology and innovation policies in small and developing economies: The case of Central America," Research Policy, Elsevier, Elsevier, vol. 43(4), pages 749-759.
  7. Agustí Segarra & José García-Quevedo & Mercedes Teruel, 2013. "Financial constraints and the failure of innovation projects," Working Papers, Xarxa de Referència en Economia Aplicada (XREAP) XREAP2013-01, Xarxa de Referència en Economia Aplicada (XREAP), revised Mar 2013.
  8. Maria Teresa Costa-Campi & Néstor Duch-Brown & José García-Quevedo, 2013. "R&D drivers and obstacles to innovation in the energy industry," Working Papers 2013/23, Institut d'Economia de Barcelona (IEB).
  9. Gabriele Pellegrino & Maria Savona, 2013. "Is Money All? Financing Versus Knowledge and Demand Constraints to Innovation," SPRU Working Paper Series 2013-01, SPRU - Science and Technology Policy Research, University of Sussex.
  10. Marin,Giovanni & Marzucchi,Alberto & Zoboli,Roberto, 2014. "SMEs and Barriers to Eco-Innovation in EU: A Diverse Palette of Greens," INGENIO (CSIC-UPV) Working Paper Series 201404, INGENIO (CSIC-UPV).
  11. Simachev, Yuri & Kuzyk, Mikhail & Ivanov, Denis, 2012. "Fostering innovation in Russian companies in the post-crisis period: Opportunities and constraints," MPRA Paper 41284, University Library of Munich, Germany.
  12. Fulvio Castellacci, 2014. "Service Firms Heterogeneity, International Collaborations and Export Participation," Journal of Industry, Competition and Trade, Springer, Springer, vol. 14(2), pages 259-285, June.

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