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Innovations in Manufacture with Some Evidence from Romania

Author

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  • Radu Herman

    (Faculty of Business and Administration, University of Bucharest, Romania)

  • Cornelia Nistor

    (Faculty of Business and Administration, University of Bucharest, Romania)

Abstract

The aim of this article is to study the relationship between the type of industry and the rate of adoption of product innovation, process innovation and organizational innovation. In the traditional approach, being innovative is only effective in the short run because competition will begin to imitate that innovation. In an alternative approach, there is a distinction between innovative and non-innovative firms. We tried to capture this process by making two groups of industries: low-tech industries and high-tech industries. If they seek to be competitive in the long run, innovative firms are strategically proposing to adopt new technologies and to innovate in product, process or internally in the organization. A study is being conducted using the data provided by the European Bank for Reconstruction and Development through the Business Environment and Enterprise Performance Survey (BEEPS) database for Romania in the year 2012. At industry level, companies’ innovative behavior is unclear, but after grouping them into low-tech and high-tech industries, results have become more robust, respectively, in high-tech industries, there is an average of more product or process innovations. An interesting observation is that the percentage of adopting organizational innovations remains constant for both low-tech and high-tech industries. An interpretation related to the long term competitive innovative behavior is that by product and process innovation, the firm has a strategic vision and will have a constant process of structural organization.

Suggested Citation

  • Radu Herman & Cornelia Nistor, 2018. "Innovations in Manufacture with Some Evidence from Romania," Manager Journal, Faculty of Business and Administration, University of Bucharest, vol. 28(1), pages 74-83, December.
    • Handle: RePEc:but:manage:v:28:y:2018:i:1:p:74-83
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    References listed on IDEAS

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