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Innovation patterns in firms and intra-industry heterogeneity empirical evidence from Turkey

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  • Alp Eren Yurtseven

    (Scientific and Technological Research Council of Turkey)

  • Mehmet Teoman Pamukçu

    (Middle East Technical University)

Abstract

This paper aims to explore sector-level sources of intra-industry heterogeneity of innovation patterns among Turkish firms. We constructed a taxonomy of innovative firms and explored the different modes of innovation. We then analyzed the sector-level determinants of intra-industry heterogeneity. Analysis results indicate that groups of firms within the same sector that display distinct innovation characteristics and firm’s resource position, knowledge base, and cooperation behavior have a bearing on firms’ innovative characteristics. Furthermore, our analysis shows that variables related to variety generation within a sector increase heterogeneity. In contrast, larger average firm size or concentration of firms that belong to a group reduces heterogeneity in that sector. Our analysis results show that firms with distinct innovative characteristics populate the sectors. Therefore, sectoral innovation policies should target specific groups rather than emphasizing innovation typologies based on vague abstractions. Moreover, heterogeneity of innovative behavior can be a risk-mitigation tool to control the adverse effects of path dependency and lock-in.

Suggested Citation

  • Alp Eren Yurtseven & Mehmet Teoman Pamukçu, 2022. "Innovation patterns in firms and intra-industry heterogeneity empirical evidence from Turkey," Evolutionary and Institutional Economics Review, Springer, vol. 19(2), pages 645-679, September.
    • Handle: RePEc:spr:eaiere:v:19:y:2022:i:2:d:10.1007_s40844-022-00236-6
    DOI: 10.1007/s40844-022-00236-6
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    More about this item

    Keywords

    Innovation patterns; Intra-industry heterogeneity; Firm taxonomy;
    All these keywords.

    JEL classification:

    • 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
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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