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Innovation determinants over industry life cycle

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  • Tavassoli, Sam

Abstract

This paper analyzes how the influence of firm-level innovation determinants varies over the industry life cycle. Two sets of determinants are distinguished: (1) determinants of a firm's innovation propensity, i.e. the likelihood of being innovative and (2) determinants of its innovation intensity, i.e. innovation sales. By combining the literature emphasizing firms' internal resources (micro-level) with the research strand on the role of the industry context (meso-level), the paper develops hypotheses about the relative importance of firm-level innovation determinants over the industry life cycle. Estimation of a firm-level model of innovation in Sweden, while acknowledging the stage of the life cycle of the industry a firm belongs to, shows that the importance of the determinants of innovation propensity and intensity is not equal over the stages of an industry's life cycle.

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  • Tavassoli, Sam, 2015. "Innovation determinants over industry life cycle," Technological Forecasting and Social Change, Elsevier, vol. 91(C), pages 18-32.
    • Handle: RePEc:eee:tefoso:v:91:y:2015:i:c:p:18-32
    DOI: 10.1016/j.techfore.2013.12.027
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    More about this item

    Keywords

    Determinants of innovation; Innovation intensity; Innovation propensity; Industry life cycle (ILC); Community Innovation Survey (CIS4);
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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