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Firms' decisions to innovate and innovation routines

  • Elizabeth Webster

This article investigates the forces that lead some firms to engage in more innovative activities than others using a survey of 360 large Australian firms. Many earlier studies on the determinants of innovation followed the Schumpeterian tradition, and focused on size and market structure as possible causes of innovativeness; however, with the event of new qualitative measures of industry knowledge and managerial styles, these factors have been found to be less important. The results of the present study show that external factors and generic routines common to all industries, such as the extent of learning, knowledge spillovers, appropriability and managerial approach are more important than industry specific forces. Locally-owned companies were also found to be more innovative, other things considered.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/10438590410001686824
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Article provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.

Volume (Year): 13 (2004)
Issue (Month): 8 ()
Pages: 733-745

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Handle: RePEc:taf:ecinnt:v:13:y:2004:i:8:p:733-745
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  1. Sidney G. Winter & Yuri M. Kaniovski & Giovanni Dosi, 2003. "A Baseline Model of Industry Evolution," LEM Papers Series 2003/12, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  2. Suma Athreye, 2001. "Competition, Rivalry And Innovative Behaviour," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 10(1), pages 1-21.
  3. Marco Valente & Andrea Bassanini & Luigi Marengo & Giovanni Dosi, 1999. "Norms as emergent properties of adaptive learning: The case of economic routines," Journal of Evolutionary Economics, Springer, vol. 9(1), pages 5-26.
  4. Dosi, Giovanni, 1988. "Sources, Procedures, and Microeconomic Effects of Innovation," Journal of Economic Literature, American Economic Association, vol. 26(3), pages 1120-71, September.
  5. Geroski, P A & Walters, C F, 1995. "Innovative Activity over the Business Cycle," Economic Journal, Royal Economic Society, vol. 105(431), pages 916-28, July.
  6. Spyros Arvanitis, 2008. "Explaining Innovative Activity In Service Industries: Micro Data Evidence For Switzerland," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(3), pages 209-225.
  7. Covin, Jeffrey G. & Slevin, Dennis P. & Heeley, Michael B., 2001. "Strategic decision making in an intuitive vs. technocratic mode: structural and environmental considerations," Journal of Business Research, Elsevier, vol. 52(1), pages 51-67, April.
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