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Profit and Innovation Strategies in Low-Tech Firms



    () (Departmento de Sociologíay. UNIVERSITY OF OVIEDO. Campus del Cristo, 33006 Oviedo/Asturias)


The present article outlines the main developments of what may be called the ‘new innovation theory’. This theory is based on the work of Schumpeter and combines it with the profit strategy approach. The purpose of this combination is to show that innovation needs to be embedded in coherent profit strategies in order to be effective. Innovation capacity and economic performance are much more the result of the smooth interplay between the stakeholders of firms than of high-tech or the intensity of research and development. The argument is illustrated in a comparative case-study of two firms. Este artículo combina la Nueva Teoría de la Innovación a partir de Schumpeter con el enfoque de las estrategias de beneficio para analizar la capacidad innovadora de empresas de baja intensidad tecnológica. La capacidad innovadora y la rentabilidad económica dependen mucho más de la coherencia de la estrategia de beneficio adoptada y de la fluidez de relaciones entre los principales grupos de interés en la empresa que de la intensidad tecnológica o de las inversiones en I+D. El argumento es ilustrado en un estudio comparativo de dos casos.

Suggested Citation

  • Holm-Detlev Köhler, 2008. "Profit and Innovation Strategies in Low-Tech Firms," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 26, pages 73-88, Julio.
  • Handle: RePEc:lrk:eeaart:26_3_14

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    References listed on IDEAS

    1. Coriat, Benjamin & Weinstein, Olivier, 2002. "Organizations, firms and institutions in the generation of innovation," Research Policy, Elsevier, vol. 31(2), pages 273-290, February.
    2. John E. Elliott, 1980. "Marx and Schumpeter on Capitalism's Creative Destruction: A Comparative Restatement," The Quarterly Journal of Economics, Oxford University Press, vol. 95(1), pages 45-68.
    3. Nelson, Richard R. & Winter, Sidney G., 1993. "In search of useful theory of innovation," Research Policy, Elsevier, vol. 22(2), pages 108-108, April.
    4. Loasby, Brian J., 2002. "The evolution of knowledge: beyond the biological model," Research Policy, Elsevier, vol. 31(8-9), pages 1227-1239, December.
    5. Dosi, Giovanni, 1988. "Sources, Procedures, and Microeconomic Effects of Innovation," Journal of Economic Literature, American Economic Association, vol. 26(3), pages 1120-1171, September.
    6. Dosi, Giovanni, 1993. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 22(2), pages 102-103, April.
    7. Dosi, Giovanni & Nelson, Richard R, 1994. "An Introduction to Evolutionary Theories in Economics," Journal of Evolutionary Economics, Springer, vol. 4(3), pages 153-172, September.
    8. Lundvall, Bengt-Ake & Johnson, Bjorn & Andersen, Esben Sloth & Dalum, Bent, 2002. "National systems of production, innovation and competence building," Research Policy, Elsevier, vol. 31(2), pages 213-231, February.
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    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives


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