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Industry - and firm-specific factors of innovation novelty

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Abstract

This paper investigates the underlying factors that might shape the firm’s choices with respect to degrees of innovation novelty. Using a sample of 2983 firms observed under the Portuguese Community Innovation Survey, we assess the relative relevance of a set of firm- and industry-specific factors in explaining firms’ choices about incremental or radical innovation. The results indicate that both the firm’s idiosyncratic historical factors giving rise to heterogeneous R&D capabilities and the industry context have power to shape the firm’s innovation choices, even though firm-specific factors appear to be more powerful. The estimated impacts on firm’s innovation novelty are, nonetheless, significantly moderated by the type of firm and industry.

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  • Natália Barbosa & Ana Paula Faria & Vasco Eiriz, 2013. "Industry - and firm-specific factors of innovation novelty," NIPE Working Papers 10/2013, NIPE - Universidade do Minho.
    • Handle: RePEc:nip:nipewp:10/2013
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    1. repec:wsi:ijitmx:v:14:y:2017:i:06:n:s0219877017500407 is not listed on IDEAS
    2. repec:eee:techno:v:68:y:2017:i:c:p:35-43 is not listed on IDEAS
    3. Spyros Arvanitis & Florian Seliger, 2014. "Imitation versus innovation," KOF Working papers 14-367, KOF Swiss Economic Institute, ETH Zurich.

    More about this item

    Keywords

    Radical and incremental innovation; competitive environment; R&D capabilities.;

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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