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The impact of non-technological innovation on technical innovation: do services differ from manufacturing? An empirical analysis of Luxembourg firms

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  • MOTHE Caroline
  • NGUYEN Thi Thuc Uyen

Abstract

Generally speaking, the support of technological innovation has been viewed in terms of input such as R&D and instruments such as legal protection. The literature on innovation highlights the interactive nature of the innovation process in which non-technological activities are essential. However, few works have taken into account the role of other innovative strategies such as marketing and organisational innovation, a role which may differ according to whether the firm is involved in manufacturing or in services. The purpose of this paper is to contribute to fill this gap by highlighting the effects of non-technological innovation strategies on technological innovation. For the empirical work, we used firm-level data drawn from the Community Innovation Survey 2006 for Luxembourg. Our results show that the effects of non-technological innovations differ depending on the phase of the innovation process. Marketing and organisational innovations significantly increase the likelihood of innovation, but not the commercial success of innovation. The study also shows the differentiated effects of the two types of non-technological innovation in manufacturing and service, and confirms the key role of organisational innovation for services.

Suggested Citation

  • MOTHE Caroline & NGUYEN Thi Thuc Uyen, 2010. "The impact of non-technological innovation on technical innovation: do services differ from manufacturing? An empirical analysis of Luxembourg firms," LISER Working Paper Series 2010-01, Luxembourg Institute of Socio-Economic Research (LISER).
    • Handle: RePEc:irs:cepswp:2010-01
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    References listed on IDEAS

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    1. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
    2. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation And Productivity: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 115-158.
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    Cited by:

    1. Jaan Masso & Priit Vahter, 2012. "The link between innovation and productivity in Estonia's services sector," The Service Industries Journal, Taylor & Francis Journals, vol. 32(16), pages 2527-2541, December.
    2. Georgios Efthyvoulou & Priit Vahter, 2016. "Financial Constraints, Innovation Performance and Sectoral Disaggregation," Manchester School, University of Manchester, vol. 84(2), pages 125-158, March.
    3. Crespi, G. & Tacsir, E. & Vargas, F., 2014. "Innovation and productivity in services: Empirical evidence from Latin America," MERIT Working Papers 2014-069, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Silvia Cruz & Faïz Gallouj & Sônia Paulino, 2013. "Innovation in Local Public Services -the Solid Waste Sector from the perspective of Clean Development Mechanism landfill projects," Post-Print halshs-01133824, HAL.
    5. Behrens, Vanessa & Berger, Marius & Hud, Martin & Hünermund, Paul & Iferd, Younes & Peters, Bettina & Rammer, Christian & Schubert, Torben, 2017. "Innovation activities of firms in Germany - Results of the German CIS 2012 and 2014: Background report on the surveys of the Mannheim Innovation Panel Conducted in the Years 2013 to 2016," ZEW Dokumentationen 17-04, ZEW - Leibniz Centre for European Economic Research.

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    Keywords

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    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • 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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