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How do firms innovate?

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Author Info
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.

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Paper provided by EIM Business and Policy Research in its series Scales Research Reports with number H200407.

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Length: 39 pages
Date of creation: 09 Dec 2004
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Handle: RePEc:eim:papers:h200407

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