Advanced Search
MyIDEAS: Login

Making sense of innovation by R&D and non-R&D innovators in low technology contexts: a forgotten lesson for policymakers

Contents:

Author Info

  • José Albors-Garrigos

    ()
    (Dpto. Organización de Empresas)

  • José L. Hervas-Oliver

    ()
    (Dpto. Organización de Empresas)

Registered author(s):

    Abstract

    This paper attempts to use an integrated theory based on a firm’s internal and external sources of knowledge framework to analyze how different are R&D from non-R&D activities to innovate, specially in a context of low and medium low tech (LMT) sectors where most of the firms are SMEs. Simultaneously, the paper also explores the key differences between R&D and non-R&D innovators. The empirical analysis is based on a representative panel of 2023 Spanish manufacturing firms for 2005 and 2006 from the Spanish Ministry of Industry. Innovation in product and process is explained using non-R&D variables such as in Marketing, Design or hiring tertiary degree employees. Only innovation in product is explained by R&D expenditures. Addressing innovation in process, R&D variables work in few cases and neither R&D expenditures but occasionally R&D employees and are specially relevant the non-R&D variables. The interaction (moderating) effect is specially negative and significant, addressing the substitution effect with different implications regarding product or process innovation. Therefore, innovation can be explained using non-R&D variables such as investments in Marketing, Design, and other routines linked to human resources, technology monitoring committees or the existence of a formal plan to innovate. The firms with more internal resources, those which conduct R&D activities present a better AC and it leads to engage in cooperation agreements and access to external flows of knowledge. The paper has important implications for policymakers due to the fact that most of policies for R&D are based on R&D programmes, while there are other realities: non-R&D factors which also explain innovation, specially when considering low tech sector contexts. El presente artículo usa la teoría de recursos y capacidades para, a través de los recursos internos y externos de las empresas, analizar las actividades de R&D y las actividades de no-R&D en su impacto sobre la performance de innovación de la empresa, en un contexto sectorial de baja y media tecnología. Asimismo, el artículo explora el rol innovador de las empresas que hacen R&D y las que no lo hacen. Con una muestra de 2023 empresas manufactureras españolas, obtenemos un comportamiento innovador para la innovación en producto y en proceso y, sobre todo, observando que las actividades de R&D tienen muy poco peso explicativo sobre el resultado de innovación. El artículo presenta implicaciones para la Academia y los policymakers, sobre todo por el hecho de que la mayoría de las políticas de innovación se basan en actividades de R&D.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.ivie.es/downloads/docs/wpasec/wpasec-2011-06.pdf
    File Function: Fisrt version / Primera version, 2011
    Download Restriction: no

    Bibliographic Info

    Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie EC with number 2011-06.

    as in new window
    Length: 46 pages
    Date of creation: Jul 2011
    Date of revision:
    Publication status: Published by Ivie
    Handle: RePEc:ivi:wpasec:2011-06

    Contact details of provider:
    Postal: C/ Guardia Civil, 22, Esc 2a, 1o, E-46020 VALENCIA
    Phone: +34 96 319 00 50
    Fax: +34 96 319 00 55
    Email:
    Web page: http://www.ivie.es/
    More information through EDIRC

    Related research

    Keywords: fuentes de innovación; estrategias de búsqueda de conocimiento externo; cooperación tecnológica; capacidad de absorción. innovation sources; technology cooperation; absorptive capacity; search strategies.;

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Henderson, Rebecca. & Cockburn, Iain., 1994. "Measuring competence? : exploring firm effects in pharmaceutical research," Working papers 3712-94., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    2. André van Stel & Roy Thurik & David Storey, 2006. "The effect of business regulations on nascent and young business entrepreneurship," Scales Research Reports H200609, EIM Business and Policy Research.
    3. Bronwyn Hall & Francesca Lotti & Jacques Mairesse, 2009. "Innovation and productivity in SMEs: empirical evidence for Italy," Small Business Economics, Springer, vol. 33(1), pages 13-33, June.
    4. Kraft, Kornelius, 1989. "Market Structure, Firm Characteristics and Innovative Activity," Journal of Industrial Economics, Wiley Blackwell, vol. 37(3), pages 329-36, March.
    5. Henny Romijn and Manuel Albaladejo, . "Determinants of Innovation Capability in Small UK Firms: An Empirical Analysis," QEH Working Papers qehwps40, Queen Elizabeth House, University of Oxford.
    6. Cockburn, Iain M & Henderson, Rebecca M, 1998. "Absorptive Capacity, Coauthoring Behavior, and the Organization of Research in Drug Discovery," Journal of Industrial Economics, Wiley Blackwell, vol. 46(2), pages 157-82, June.
    7. Erik Stam & Karl Wennberg, 2009. "The role of R&D in new firm growth," Jena Economic Research Papers 2009-004, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
    8. Spielkamp, Alfred & Czarnitzki, Dirk & Rammer, Christian, 2008. "Innovation Success of Non-R&D-Performers: Substituting Technology by Management in SMEs," ZEW Discussion Papers 08-092, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    9. Bengt-Âke Lundvall & Peter Nielsen, 1999. "Competition and transformation in the learning economy - Illustrated by the Danish case," Revue d'Économie Industrielle, Programme National Persée, vol. 88(1), pages 67-89.
    10. Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-70, December.
    11. Bruno Cassiman & Reinhilde Veugelers, 2002. "R&D Cooperation and Spillovers: Some Empirical Evidence from Belgium," American Economic Review, American Economic Association, vol. 92(4), pages 1169-1184, September.
    12. Franz Tödtling & Patrick Lehner & Alexander Kaufmann, 2008. "Do Different Types of Innovation Rely on Specific Kinds of Knowledge Interactions?," SRE-Disc sre-disc-2008_01, Institute for the Environment and Regional Development, Department of Socioeconomics, Vienna University of Economics and Business.
    13. Hagedoorn, John & Link, Albert N. & Vonortas, Nicholas S., 2000. "Research partnerships1," Research Policy, Elsevier, vol. 29(4-5), pages 567-586, April.
    14. Werner Hölzl, 2008. "Is the R&D Behaviour of Fast Growing SMEs Different? Evidence from CIS III Data for 16 Countries," WIFO Working Papers 327, WIFO.
    15. Grimpe, Christoph & Sofka, Wolfgang, 2009. "Search patterns and absorptive capacity: Low- and high-technology sectors in European countries," Research Policy, Elsevier, vol. 38(3), pages 495-506, April.
    16. Heidenreich, Martin, 2009. "Innovation patterns and location of European low- and medium-technology industries," Research Policy, Elsevier, vol. 38(3), pages 483-494, April.
    17. Jensen, Morten Berg & Johnson, Bjorn & Lorenz, Edward & Lundvall, Bengt Ake, 2007. "Forms of knowledge and modes of innovation," Research Policy, Elsevier, vol. 36(5), pages 680-693, June.
    18. Pei-Chou Lin & Deng-Shing Huang, 2008. "Technological Regimes and Firm Survival: Evidence Across Sectors and Over Time," Small Business Economics, Springer, vol. 30(2), pages 175-186, February.
    19. Lori Rosenkopf & Paul Almeida, 2003. "Overcoming Local Search Through Alliances and Mobility," Management Science, INFORMS, vol. 49(6), pages 751-766, June.
    20. Escribano, Alvaro & Fosfuri, Andrea & Tribó, Josep A., 2009. "Managing external knowledge flows: The moderating role of absorptive capacity," Research Policy, Elsevier, vol. 38(1), pages 96-105, February.
    21. Bengt-Åke Lundvall, 2002. "The University in the Learning Economy," DRUID Working Papers 02-06, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    22. Kirner, Eva & Kinkel, Steffen & Jaeger, Angela, 2009. "Innovation paths and the innovation performance of low-technology firms--An empirical analysis of German industry," Research Policy, Elsevier, vol. 38(3), pages 447-458, April.
    23. Freel, Mark S., 2003. "Sectoral patterns of small firm innovation, networking and proximity," Research Policy, Elsevier, vol. 32(5), pages 751-770, May.
    24. Winter, Sidney G., 1984. "Schumpeterian competition in alternative technological regimes," Journal of Economic Behavior & Organization, Elsevier, vol. 5(3-4), pages 287-320.
    25. Albaladejo, M. & Romijn, H., 2000. "Determinants of innovation capability in small UK firms: an empirical analysis," Working Papers 00.13, Eindhoven Center for Innovation Studies.
    26. Santamara, Llus & Nieto, Mara Jess & Barge-Gil, Andrs, 2009. "Beyond formal R&D: Taking advantage of other sources of innovation in low- and medium-technology industries," Research Policy, Elsevier, vol. 38(3), pages 507-517, April.
    27. Mark Freel, 2007. "Are Small Innovators Credit Rationed?," Small Business Economics, Springer, vol. 28(1), pages 23-35, January.
    28. Alessandro Muscio, 2007. "THE IMPACT OF ABSORPTIVE CAPACITY ON SMEs' COLLABORATION," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(8), pages 653-668.
    29. Anker Lund Vinding, 2006. "Absorptive capacity and innovative performance: A human capital approach," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 507-517.
    30. Bruno Cassiman & Reinhilde Veugelers, 2006. "In Search of Complementarity in Innovation Strategy: Internal R& D and External Knowledge Acquisition," Management Science, INFORMS, vol. 52(1), pages 68-82, January.
    31. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
    32. Arbussa, Anna & Coenders, Germa, 2007. "Innovation activities, use of appropriation instruments and absorptive capacity: Evidence from Spanish firms," Research Policy, Elsevier, vol. 36(10), pages 1545-1558, December.
    33. Raquel Ortega-Argilés & Marco Vivarelli & Peter Voigt, 2009. "R&D in SMEs: a paradox?," Small Business Economics, Springer, vol. 33(1), pages 3-11, June.
    34. Dirk Czarnitzki, 2006. "Research And Development In Small And Medium-Sized Enterprises: The Role Of Financial Constraints And Public Funding," Scottish Journal of Political Economy, Scottish Economic Society, vol. 53(3), pages 335-357, 07.
    35. Caloghirou, Yannis & Tsakanikas, Aggelos & Vonortas, Nicholas S, 2001. " Univeristy-Industry Cooperation in the Context of the European Framework Programmes," The Journal of Technology Transfer, Springer, vol. 26(1-2), pages 153-61, January.
    36. Petr Hanel & Marc St-Pierre, 2006. "Industry–University Collaboration by Canadian Manufacturing Firms," The Journal of Technology Transfer, Springer, vol. 31(4), pages 485-499, 07.
    37. Bougrain, Frederic & Haudeville, Bernard, 2002. "Innovation, collaboration and SMEs internal research capacities," Research Policy, Elsevier, vol. 31(5), pages 735-747, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ivi:wpasec:2011-06. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Departamento de Edición).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.