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How Firms Innovate: R&D, Non-R&D, and Technology Adoption

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Listed:
  • Huang, Can

    () (UNU-MERIT, and Maastricht University)

  • Arundel, Anthony

    () (UNU-MERIT, and Australian Innovation Research Centre, University of Tasmania)

  • Hollanders, Hugo

    () (UNU-MERIT, and Maastricht University)

Abstract

Non-R&D innovation is a common economic phenomenon, though R&D has been the central focus of policy making and scholarly research in the field of innovation. An analysis of the third European Community Innovation Survey (CIS-3) results for 15 countries finds that almost half of innovative European firms did not perform R&D in-house. Firms with weak in-house innovative capabilities and which source information from suppliers and competitors tend to innovate through non-R&D activities. In contrast, firms that engage in product innovation, find clients, universities and research institutions an important information source for innovation, apply for patents, or use other appropriation methods are more likely to perform R&D. However, non-R&D performers do not form a consistent block, with several notable differences between firms that use three different methods of innovating without performing R&D. Many of these determinants also influence the share of total innovation expenditures that are spent on non-R&D innovation activities. Furthermore, an analysis of the determinants of the share of each firm's total innovation expenditures for non-R&D activities shows that the factors that influence how innovation expenditures are distributed is generally consistent across sectors and European countries.

Suggested Citation

  • Huang, Can & Arundel, Anthony & Hollanders, Hugo, 2010. "How Firms Innovate: R&D, Non-R&D, and Technology Adoption," MERIT Working Papers 2010-027, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:unumer:2010027
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    Cited by:

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    2. Rammer, Christian & Köhler, Christian & Murmann, Martin & Pesau, Agnes & Schwiebacher, Franz & Kinkel, Steffen & Kirner, Eva & Schubert, Torben & Som, Oliver, 2010. "Innovationen ohne Forschung und Entwicklung: Eine Untersuchung zu Unternehmen, die ohne eigene FuE-Tätigkeit neue Produkte und Prozesse einführen," Studien zum deutschen Innovationssystem 15-2011, Expertenkommission Forschung und Innovation (EFI) - Commission of Experts for Research and Innovation, Berlin.
    3. Paola Azar, 2020. "Politics as a determinant of primary school provision The case of Uruguay, 1914-1954," Documentos de Trabajo (working papers) 20-07, Instituto de Economia - IECON.
    4. Brink, Siegrun & Nielen, Sebastian & May-Strobl, Eva, 2018. "Innovationstätigkeit des nicht-forschenden Mittelstands," IfM-Materialien 266, Institut für Mittelstandsforschung (IfM) Bonn.
    5. Dragana Radicic & Jonathan Pinto, 2019. "Collaboration with External Organizations and Technological Innovations: Evidence from Spanish Manufacturing Firms," Sustainability, MDPI, Open Access Journal, vol. 11(9), pages 1-31, April.
    6. Sandra M. Leitner & Robert Stehrer, 2013. "R&D and Non-R&D Innovators in the Financial Crisis: the Role of Binding Credit Constraints," wiiw Working Papers 95, The Vienna Institute for International Economic Studies, wiiw.
    7. Reichert, Fernanda Maciel & Torugsa, Nuttaneeya (Ann) & Zawislak, Paulo Antonio & Arundel, Anthony, 2016. "Exploring innovation success recipes in low-technology firms using fuzzy-set QCA," Journal of Business Research, Elsevier, vol. 69(11), pages 5437-5441.
    8. Mihaela DIACONU, 2018. "Innovation – trends and patterns at Romanian firms," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(615), S), pages 51-68, Summer.
    9. Elena DRUICA & Roxana ADAM, 2015. "Logistic Regression Models: Reassessing The Determinants Of Product Innovation Using Romanian Survey Data," Journal of Social and Economic Statistics, Bucharest University of Economic Studies, vol. 4(2), pages 1-18, DECEMBER.
    10. Massimiliano Volpi, 2014. "Universities as sources of information: comparing the role of 'open innovation' and companies' motivations," SEEDS Working Papers 0514, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Mar 2014.
    11. Lin, Chia-Ling & Lin, Hui-Lin & Lin, Eric S., 2016. "Is There A Complementary Relationship Between Product And Process Innovation On Productivity In Taiwanese Manufacturing Firms?," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 57(2), pages 139-173, December.
    12. Hartmut Hirsch-Kreinsen, 2015. "Patterns of knowledge use in ‘low-tech’ industries," Prometheus, Taylor & Francis Journals, vol. 33(1), pages 67-82, January.
    13. Hervas-Oliver, Jose-Luis & Sempere-Ripoll, Francisca & Boronat-Moll, Carles, 2012. "Process innovation objectives and management complementarities: patterns, drivers, co-adoption and performance effects," MERIT Working Papers 2012-051, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    14. Carlos Bianchi & Hugo Laguna, 2020. "Firm’s innovation strategies and employment: new evidence from Uruguay," Documentos de Trabajo (working papers) 20-06, Instituto de Economia - IECON.
    15. Choi Seung Mo & González Daniel Toro & Gray Peter, 2013. "International technology adoption, R&D, and productivity growth," The B.E. Journal of Macroeconomics, De Gruyter, vol. 13(1), pages 1-24, June.
    16. Mohnen, Pierre, 2019. "R&D, innovation and productivity," MERIT Working Papers 2019-016, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    17. Jian Hou & Jiancheng Chen & Hongfeng Song & Gang Wang, 2018. "Are Non-R&D Innovation Activities Actually Effective for Innovation Sustainability? Empirical Study from Chinese High-Tech Industry," Sustainability, MDPI, Open Access Journal, vol. 11(1), pages 1-14, December.
    18. Ping Lv & Monica Plechero & Rakesh Basant, 2013. "International competitive strategy choices: comparing firms in China and India," Asia Pacific Business Review, Taylor & Francis Journals, vol. 19(4), pages 542-558, October.
    19. George Paily, 2018. "Innovation Strategies, Outcomes and Firm Performance: An Analysis of Firm Behaviour in India's Manufacturing Sector," Economics Bulletin, AccessEcon, vol. 38(4), pages 1769-1786.
    20. Chen, Jin & Heng, Cheng Suang & Tan, Bernard C.Y. & Lin, Zhijie, 2018. "The distinct signaling effects of R&D subsidy and non-R&D subsidy on IPO performance of IT entrepreneurial firms in China," Research Policy, Elsevier, vol. 47(1), pages 108-120.
    21. Juan Ricardo Perilla Jimenez, 2019. "Mainstream and evolutionary views of technology, economic growth and catching up," Journal of Evolutionary Economics, Springer, vol. 29(3), pages 823-852, July.
    22. Hervas-Oliver, Jose-Luis & Sempere-Ripoll, Francisca & Arribas, Ivan, 2015. "Asymmetric modeling of organizational innovation," Journal of Business Research, Elsevier, vol. 68(12), pages 2654-2662.

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    More about this item

    Keywords

    Non-R&D innovation; Technology adoption; Community Innovation Survey; CIS; R&D; Innovation;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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