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Non-technological and Technological Innovation: Strange Bedfellows?

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  • Schmidt, Tobias
  • Rammer, Christian

Abstract

Non-technological innovation is an important element of firms? innovation activities that both supplement and complement technological innovation, i.e. the introduction of new products and new processes. We analyse the spread of nontechnological innovation in firms, their relation to technological innovation, and their effects to firm performance and success with product and process innovation, using data from the German Community Innovation Survey conducted in 2005 (German CIS 4). Non-technological innovation is defined as the introduction of new organisational methods or the introduction of new marketing methods. We find that the determinants of a firm?s propensity to introduce technological and non-technological innovations are very similar and that both types are closely related. There are only small effects of non-technological innovation on a firm? profit margin, which contrasts the strong effects to be found from technological innovation. However, non-technological innovation spurs success with product and process innovation terms of sales with market novelties and cost reductions from new processes. --

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Bibliographic Info

Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 07-052.

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Date of creation: 2007
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Handle: RePEc:zbw:zewdip:6355

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Keywords: organisational innovation; marketing innovation; effects of innovation; CIS 4;

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Cited by:
  1. Polder, Michael & Van Leeuwen, George & Mohnen, Pierre & Raymond, Wladimir, 2010. "Product, process and organizational innovation: drivers, complementarity, and productivity effects," MPRA Paper 23719, University Library of Munich, Germany.
  2. Černe, Matej & Jaklič, Marko & Škerlavaj, Miha, 2013. "Decoupling management and technological innovations: Resolving the individualism–collectivism controversy," Journal of International Management, Elsevier, vol. 19(2), pages 103-117.
  3. Doran, Justin, 2012. "Are different forms of innovation complements or substitutes?," MPRA Paper 44580, University Library of Munich, Germany.
  4. Ali-Yrkkö, Jyrki & Martikainen, Olli, 2008. "The Impact of Technological and Non-Technological Innovations on Firm Growth," Discussion Papers 1165, The Research Institute of the Finnish Economy.
  5. Gerard Ballot & Fathi Fakhfakh & Fabrice Gallia & Ammon Salter, 2011. "The Fateful Triangle Complementarities between product, process and organizational innovation in the UK and France," TEPP Working Paper 2011-05, TEPP.
  6. Szalavetz, Andrea, 2012. "Az immateriális beruházások és a nem közvetlenül a termelésben foglalkoztatottak szerepe a gazdasági felzárkózásban
    [The role intangible investments and non-production workers play in ec
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1187-1206.
  7. Colombo, Luca & Dawid, Herbert & Piva, Mariacristina & Vivarelli, Marco, 2013. "Does Easy Start-Up Formation Hamper Incumbents' R&D Investment? A Theoretical and Empirical Analysis," IZA Discussion Papers 7302, Institute for the Study of Labor (IZA).
  8. Sotiris Zygiaris, 2009. "Regional Innovation System Failures And Highlights," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 3(2), pages 54-76, DECEMBER.
  9. Olivér KOVÁCS, 2013. "Black swans or creeping normalcy? – An attempt to a holistic crisis analysis," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 4, pages 127-143, June.
  10. Ljiljana Božić, 2011. "Marketing Innovations in Croatia," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 23(1), pages 63-72.
  11. Martin Borowiecki & Bernhard Dachs & Doris Hanzl-Weiss & Steffen Kinkel & Johannes Pöschl & Magdolna Sass & Thomas Christian Schmall & Robert Stehrer & Andrea Szalavetz, 2012. "Global Value Chains and the EU Industry," wiiw Research Reports 383, The Vienna Institute for International Economic Studies, wiiw.

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