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Marketing and the persistence of Innovation

Author

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  • Stéphane Lhuillery

    (ICN Business School, BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique)

Abstract

When the sources of innovation persistence are considered, marketing activities are overlooked despite their critical role in innovation success. Using three waves of the French CIS innovation survey covering the period 2002-2008, this paper investigates the role of marketing activities on innovation success and on the hypothesis that successful manufacturing firms are able to stay successful over time. The econometric results confirm that innovation success depends on past innovation success. The magnitude is small and similar to previous findings. Marketing is also found to be a determinant of innovation success but only with short term effects and only when directly related to new products. The impact of innovation marketing does not change the magnitude or significance of the state dependence of innovation success. Nonetheless, it may compensate a lack of past innovation. Important differences are also exposed: in high-tech industries success breeds success works but thanks to imitation. Firms are able to maintain the share of their innovative turnover whereas they are not able to stay leaders with radical innovations. Innovation marketing may compensate a lack of persistence or complement persistence but only in low-tech industries where leading firms are found likely to maintain their positions.

Suggested Citation

  • Stéphane Lhuillery, 2013. "Marketing and the persistence of Innovation," Post-Print hal-01514577, HAL.
    • Handle: RePEc:hal:journl:hal-01514577
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