Innovation determinants over industry life cycle

Abstract

This paper analyzes how the influence of firm-level innovation determinants varies over the industry life cycle. Two sets of determinants are distinguished: (1) determinants of a firm's innovation propensity, i.e. the likelihood of being innovative and (2) determinants of its innovation intensity, i.e. innovation sales. By combining the literature emphasizing firms' internal resources (micro level) with the research strand on the role of the industry context (mesolevel), the paper develops hypotheses about the relative importance of firm-level innovation determinants over the industry life cycle. Estimation of a firm-level model of innovation in Sweden, while acknowledging the stage of the life cycle of the industry a firms belongs to, shows that the importance of the determinants of innovation propensity and intensity are not equal over the stages of an industry's life cycle.

Empirical Studies on Innovation Performance in the Manufacturing and Service Sectors Since 1995: A Systematic Review

“…In-house R&D indirectly helps the firm to exploit externally available scientific knowledge from collaborators (Vega-Jurado et al, 2008;Alvarez et al, 2009;De Jong & von Hippel, 2009;Love et al, 2011). Such external technological opportunities induce investment in R&D because there is a positive correlation between absorptive capacity, innovativeness and R&D intensity (Vega-Jurado et al, 2008;Tavassoli, 2015). According to Mansury and Love (2008) and Freel (2005), service sector firms are more likely to develop innovations in collaboration with customers and suppliers by emphasising the collaborative interactions, while firms in manufacturing tend to develop their in-house R&D and linkages with universities.…”

The relationship between innovation and export behaviour: The case of Galician firms

“…Dosi et al, 1990;Soete, 1987;Verspagen and Wakelin, 1997). Recent approaches have been carried out from new perspectives, such as the industry life cycle (Tavassoli, 2015). In general, there is a consensus that technology-intensive sectors export more than other sectors, and therefore, the sector variable, along with other firm characteristics, is usually included as a control variable to take into account factors that can affect firm export behaviour (e.g.…”

Persistence of various types of innovation analyzed and explained

“…and managerial characteristics of firms. We still have a limited understanding of the long-term determinants of the innovation behavior of firms including their investments in different types of innovation, such as products, processes, organization and markets (Tavassoli, 2015). To increase our understanding of these issues, we in this paper try to answer the following five related questions: Is innovation persistent at the firm level?…”