Persistence in generating and adopting product innovations

Abstract

Purpose -The purpose of this paper is to test the existence of true persistence in the generation and adoption of product innovations in the context of a developing country. Design/methodology/approach -A dynamic probit model with random effects is used to test true persistence relying on a panel data set constructed from three waves of the Colombian innovation survey (Encuesta de Desarrollo e Innvovación Tecnológica) covering the time span from 2003 to 2008.Findings -This paper empirically shows the existence of true innovation persistence for two of the three types of product innovation studied: the adoption of product innovation that is new to the firm; and the adoption of product innovation that is new to the national market. However, the study could not confirm true persistence in the generation of product innovation. Originality/value -To the best of our knowledge, this is the first study that systematically tests innovation persistence differentiating between the adoption of innovations that are new to the firm and innovation that is new to the national market. It is also the first study in this research area that uses a dynamic probit model with random effects according to the original specification by Wooldridge (2005). ResumenPropósito -En este trabajo se prueba la existencia de verdadera persistencia en la generación y adopción de innovaciones de productos en el contexto de un país en desarrollo. Diseño/metodología -Para probar la existencia de verdadera persistencia se estima un modelo probit dinámico con efectos aleatorios utilizando tres cohortes de la Encuesta de Desarrollo e Innvovación Tecnológica (EDIT) que cubren el periodo de tiempo 2003-2008. Resultados -Este trabajo muestra empíricamente la existencia de verdadera persistencia en dos de los tres tipos de innovación de productos estudiados: en i) la adopción de innovación de productos nuevo para la empresa, y ii) la adopción de innovación de productos nuevo para el mercado nacional. Sin embargo, el estudio no pudo confirmar la verdadera persistencia en la generación de innovación de productos. Originalidad -Este es el primer estudio que evalúa sistemáticamente la persistencia en la innovación diferenciando entre la adopción de innovaciones que son nuevas para la empresa de las que lo son para el mercado nacional. También es el primer estudio en esta área de investigación que utiliza un modelo probit dinámico con efectos aleatorios de acuerdo con la especificación original de Wooldridge (2005). Palabras claves Persistencia en innovación, dependencia verdadera, innovación de productos, adopción de productos, imitación, país en desarrollo, empresas manufactureras Tipo de papel Trabajo de investigación

To persist or not?

“…However, those Argentinean firms which make sustained innovation investments are more likely to innovate in this kind of environment. The second study is that of Juliao-Rossi and Schmutzler (2016). They provide empirical evidence that in a period of stable macro-economic development true innovation persistence can be found in Colombian manufacturing firms for innovation based on processes of imitation.…”

“…on EDIT are recent but increasing in number (Bogliacino and Naranjo, 2008;Crespi and Zuñiga, 2012;Juliao-Rossi et al, 2013;Juliao-Rossi and Schmutzler, 2016;Lambardi and Mora, 2014). Our final sample consists of 4491 firms.…”

The effect of technological innovation on low-tech Peruvian manufacturing firms' performance: the role of external sources of knowledge

“…The literature review indicates that the results are mixed, but the present study shows that this relationship is direct and positive. It has also been possible to show that product innovation is positively associated with firm performance (Juliao-Rosi and Schmutzler, 2016), which makes sense since firm performance consists of factors such as the introduction of new products to the market, an increase in the product portfolio and improved product quality. While it is striking that the relationship between process innovation and firm performance is not statistically significant, considering that firm performance included items such as improved flexibility, increased production and the reduction of labor costs, it is still intricately linked to process innovation (e.g.…”

Organizational Innovation and Tech Innovation Persistence

“…The relationship between organizational innovation and technological innovation persistence in low-and medium-low-tech firms has been researched in different contexts. More research has been done in developed countries (Juliao-Rossi & Schmutzler, 2016), but research has also been carried out in the Latin American context.…”

“…The literature review indicates that most research has been oriented toward analyzing firms with higher levels of technological intensity in developed economies (Juliao-Rossi & Schmutzler, 2016), there being little interest in studying the innovative behavior of lower-tech firms in less developed economies (Hervas-Oliver et al, 2011). In particular, it is desirable to study technological innovation persistence, as the results regarding this phenomenon have been ambiguous: some authors indicate that the idea of innovation persistence is spurious (Raymond et al, 2010), while others have stated that there are indeed firms that persistently carry out technological innovations (Le Bas et al, 2015).…”