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Industry - and firm-specific factors of innovation novelty

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This paper investigates the underlying factors that might shape the firm’s choices with respect to degrees of innovation novelty. Using a sample of 2983 firms observed under the Portuguese Community Innovation Survey, we assess the relative relevance of a set of firm- and industry-specific factors in explaining firms’ choices about incremental or radical innovation. The results indicate that both the firm’s idiosyncratic historical factors giving rise to heterogeneous R&D capabilities and the industry context have power to shape the firm’s innovation choices, even though firm-specific factors appear to be more powerful. The estimated impacts on firm’s innovation novelty are, nonetheless, significantly moderated by the type of firm and industry.

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Paper provided by NIPE - Universidade do Minho in its series NIPE Working Papers with number 10/2013.

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Date of creation: 2013
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Handle: RePEc:nip:nipewp:10/2013

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Keywords: Radical and incremental innovation; competitive environment; R&D capabilities.;

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