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How do firms innovate?

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  • Jeroen de Jong
  • Orietta Marsili

Abstract

This paper classifies Dutch innovative SMEs into four clusters with similar innovation patterns: supplier-dominated, client-driven, science-based and input-intensive firms. The classification is compiled using some new indicators that are particularly relevant to innovation in SMEs. We used the firm level as unit of classification; a departure from previous taxonomic studies. Doing so enabled us to assess the heterogeneity of firms within a particular sector. Our results indicate that differences between manufacturing and services sectors should not be exaggerated. Besides, firms are very diverse in how they handle innovation processes.

Suggested Citation

  • Jeroen de Jong & Orietta Marsili, 2004. "How do firms innovate?," Scales Research Reports H200407, EIM Business and Policy Research.
    • Handle: RePEc:eim:papers:h200407
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