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Modes Of Innovation & Uncertainties In The Capital Goods Industry


  • Celeste Amorim Varum

    () (Universidade de Aveiro)

  • Leonildo Monteiro

    () (Universidade de Aveiro)


Product innovation is a subtle process, frequently leading to shifts in the competitiveness of firms. Developing products in an environment undergoing technological change is given to frequent failure, even in well-established and sophisticated organizations. In order to tackle competitiveness and to deal with innovation uncertainty, firms develop diverse innovation processes. Two modes of innovation are suggested in recent literature: 1) Science, Technology and Innovation (STI) mode, which is based on the production and use of codified scientific and technical knowledge; and 2) Doing, Using and Interacting (DUI) mode, which relies on informal processes of learning and experience-based know-how. In this paper we analyse product innovation at firm level. We perform an exploratory analysis in four leading equipment and machinery producers from the Aveiro region, in Portugal. Doing so, we explore the main features of the capital goods’ industry with implications for innovation, and analyse the dominant uncertainties associated to the innovation process. and modes of innovation. Key findings include the complete absence of DUI mode in the cases studied, and even a low learning characteristic in one company. The paper concludes by considering the implications for firms’ competitiveness and for innovation policy.

Suggested Citation

  • Celeste Amorim Varum & Leonildo Monteiro, 2007. "Modes Of Innovation & Uncertainties In The Capital Goods Industry," Working Papers de Economia (Economics Working Papers) 47, Departamento de Economia, Gestão e Engenharia Industrial, Universidade de Aveiro.
  • Handle: RePEc:ave:wpaper:472007

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    References listed on IDEAS

    1. Michael T. Pich & Christoph H. Loch & Arnoud De Meyer, 2002. "On Uncertainty, Ambiguity, and Complexity in Project Management," Management Science, INFORMS, vol. 48(8), pages 1008-1023, August.
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    More about this item


    modes of innovation; uncertainties; R&D; capital goods; SME;

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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