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Innovation strategies as a source of persistent innovation

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Author Info

  • Tommy Clausen

    (Centre for Technology, Innovation and Culture, University of Oslo)

  • Mikko Pohjola

    (Turku School of Economics, Finland)

  • Koson Sapprasert

    (Centre for Technology, Innovation and Culture, University of Oslo)

  • Bart Verspagen

    (Centre for Technology, Innovation and Culture, University of Oslo)

Abstract

An important topic in the recent literature on firms’ innovation is the question of whether, and to what extent, firms which innovate once have a higher probability of innovating again in subsequent periods. This phenomenon is called the ‘persistence of innovation’. Although the literature has established that innovation persistence is indeed important from an empirical point of view, relatively little attention has been paid to identifying the reasons why this is the case. This study proposes that the differences in innovation strategies across firms are an important driving force behind innovation persistence, and analyses this issue using a panel database constructed from R&D and Community Innovation Surveys in Norway. Empirical measures of various innovation strategies are identified by means of a factor analysis. A cluster analysis is used in addition to a dynamic random effects probit model to extend the methodology adopted by prior studies, for the purpose to not only examine innovation persistence, but also determine how this persistence is influenced by innovation strategies. The results support the idea that the differences in innovation strategies across firms are an important determinant of the firms’ probability to repeatedly innovate. The study also distinguishes the effects of strategy differences on the persistence of product and process innovation in all firms, and within high-tech versus low-tech firms.

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Bibliographic Info

Paper provided by Centre for Technology, Innovation and Culture, University of Oslo in its series Working Papers on Innovation Studies with number 20100617.

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Length: 34 pages
Date of creation: Jun 2010
Date of revision:
Handle: RePEc:tik:inowpp:20100617

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Keywords: Persistence of innovation; Firm heterogeneity; Innovation strategy; Panel data;

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Cited by:
  1. Cristiano Antonelli & Francesco Crespi & Giuseppe Scellato, 2013. "Internal and external factors in innovation persistence," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 22(3), pages 256-280, April.
  2. LE BAS Christian & POUSSING Nicolas, 2013. "Are complex innovators more persistent than single innovators? An empirical analysis of innovation persistence drivers," CEPS/INSTEAD Working Paper Series 2013-26, CEPS/INSTEAD.
  3. LE BAS Christian & MOTHE Caroline & NGUYEN Thi Thuc Uyen, 2011. "Technological innovation persistence: Literature survey and exploration of the role of organizational innovation," CEPS/INSTEAD Working Paper Series 2011-54, CEPS/INSTEAD.
  4. Bilkic, Natasa & Gries, Thomas & Naudé, Wim, 2013. "The Radical Innovation Investment Decision Refined," IZA Discussion Papers 7338, Institute for the Study of Labor (IZA).
  5. Chaminade, Cristina & Intarakumnerd, Patarapong & Sapprasert, Koson, 2012. "Measuring systemic problems in National Innovation Systems. An application to Thailand," Research Policy, Elsevier, vol. 41(8), pages 1476-1488.
  6. Antonelli, Cristiano & Crespi, Francesco & Scellato, Giuseppe, 2013. "Path Dependent Patterns of Persistence in Productivity Growth," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201323, University of Turin.
  7. Baraldi, Anna Laura & Cantabene, Claudia & Perani, Giulio, 2013. "Reverse causality in the R&D – patents relationship: an interpretation of the innovation persistence," MPRA Paper 47684, University Library of Munich, Germany.
  8. Antonelli,Cristiano & Crespi, Francesco & Scellato, Giuseppe, 2012. "Inside innovation persistence: New evidence from Italian micro-data," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201213, University of Turin.
  9. Krzysztof Szczygielski & Wojciech Grabowski & Richard Woodward, 2013. "External vs Internal Determinants of Firm Technology Strategy:Evidence from the Polish Services Sector," CASE Network Studies and Analyses 0454, CASE-Center for Social and Economic Research.
  10. Erika Raquel Badillo & Rosina Moreno, 2014. "“Are R&D collaborative agreements persistent at the firm level? Empirical evidence for the Spanish case”," IREA Working Papers 201410, University of Barcelona, Research Institute of Applied Economics, revised Mar 2014.
  11. Erika Raquel Badillo & Rosina Moreno, 2014. "“Are R&D collaborative agreements persistent at the firm level? Empirical evidence for the Spanish case”," AQR Working Papers 201405, University of Barcelona, Regional Quantitative Analysis Group, revised Mar 2014.

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