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Innovation strategies and firm performance : Simple or complex strategies?

Tavassoli, Sam LU and Karlsson, Charlie (2015) In Economics of Innovation and New Technology p.1-20
Abstract

This paper analyzes the effect of various innovation strategies (ISs) of firms on their future performance, captured by labor productivity. Using five waves of the Community Innovation Survey in Sweden, we have traced the innovative behavior of firms over a decade, that is, from 2002 to 2012. We defined ISs to be either simple or complex (in various degrees). We call an IS a simple IS when firms engage in only one of the four types of Schumpeterian innovations, that is, product, process, marketing, or organizational, while a complex IS is when firms simultaneously engage in more than one type. The main findings indicate that those firms that choose and afford to have complex ISs are better off in terms of their future productivity in... (More)

This paper analyzes the effect of various innovation strategies (ISs) of firms on their future performance, captured by labor productivity. Using five waves of the Community Innovation Survey in Sweden, we have traced the innovative behavior of firms over a decade, that is, from 2002 to 2012. We defined ISs to be either simple or complex (in various degrees). We call an IS a simple IS when firms engage in only one of the four types of Schumpeterian innovations, that is, product, process, marketing, or organizational, while a complex IS is when firms simultaneously engage in more than one type. The main findings indicate that those firms that choose and afford to have complex ISs are better off in terms of their future productivity in comparison with those firms that choose not to innovative (base group) and also in comparison with those firms that choose simple ISs. The results are mostly robust for those complex innovators that have a higher degree of complexity and also keep the balance between technological (product and process) and non-technological (organizational and marketing) innovations.

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author
publishing date
type
Contribution to journal
publication status
in press
subject
keywords
Community Innovation Survey, complex, firm level, firm performance, Innovation strategy, panel, productivity, simple
in
Economics of Innovation and New Technology
pages
20 pages
publisher
Taylor & Francis
external identifiers
  • Scopus:84947733840
ISSN
1043-8599
DOI
10.1080/10438599.2015.1108109
language
English
LU publication?
no
id
bf24d7ca-620a-4182-80c9-e67f637907b4
date added to LUP
2016-05-18 22:05:52
date last changed
2017-01-01 08:26:25
@article{bf24d7ca-620a-4182-80c9-e67f637907b4,
  abstract     = {<p>This paper analyzes the effect of various innovation strategies (ISs) of firms on their future performance, captured by labor productivity. Using five waves of the Community Innovation Survey in Sweden, we have traced the innovative behavior of firms over a decade, that is, from 2002 to 2012. We defined ISs to be either simple or complex (in various degrees). We call an IS a simple IS when firms engage in only one of the four types of Schumpeterian innovations, that is, product, process, marketing, or organizational, while a complex IS is when firms simultaneously engage in more than one type. The main findings indicate that those firms that choose and afford to have complex ISs are better off in terms of their future productivity in comparison with those firms that choose not to innovative (base group) and also in comparison with those firms that choose simple ISs. The results are mostly robust for those complex innovators that have a higher degree of complexity and also keep the balance between technological (product and process) and non-technological (organizational and marketing) innovations.</p>},
  author       = {Tavassoli, Sam and Karlsson, Charlie},
  issn         = {1043-8599},
  keyword      = {Community Innovation Survey,complex,firm level,firm performance,Innovation strategy,panel,productivity,simple},
  language     = {eng},
  month        = {11},
  pages        = {1--20},
  publisher    = {Taylor & Francis},
  series       = {Economics of Innovation and New Technology},
  title        = {Innovation strategies and firm performance : Simple or complex strategies?},
  url          = {http://dx.doi.org/10.1080/10438599.2015.1108109},
  year         = {2015},
}