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Persistence of various types of innovation analyzed and explained

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  • Tavassoli, Sam
  • Karlsson, Charlie

Abstract

This paper analyzes the persistency in innovation behavior of firms. Using five waves of the Community Innovation Survey in Sweden, we have traced the innovative behavior of firms over a ten-year period, i.e., between 2002 and 2012. We distinguish between four types of innovations: process, product, marketing, and organizational innovations. First, using transition probability matrix, we found evidence of (unconditional) state dependence in all types of innovation, with product innovators having the strongest persistent behavior. Second, using a dynamic probit model, we found evidence of “true” state dependency among all types of innovations, except marketing innovators. Once again, the strongest persistency was found for product innovators.

Suggested Citation

  • Tavassoli, Sam & Karlsson, Charlie, 2015. "Persistence of various types of innovation analyzed and explained," Research Policy, Elsevier, vol. 44(10), pages 1887-1901.
  • Handle: RePEc:eee:respol:v:44:y:2015:i:10:p:1887-1901
    DOI: 10.1016/j.respol.2015.06.001
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    More about this item

    Keywords

    Persistence; Innovation; Product innovations; Process innovations; Marketing innovations; Organizational innovations; State dependence; Heterogeneity; Firms; Community Innovation Survey;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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