Industry- and firm-specific factors of innovation novelty

• Author(s): Barbosa, Natália ; Faria, Ana Paula ; Eiriz, Vasco
• Date: 2013
• Persistent ID: http://hdl.handle.net/1822/24268
• Origin: RepositóriUM - Universidade do Minho
• Subject(s): Radical and incremental innovation; Competitive environment; R&D capabilities
• Document Type: Research paper
• Language: English

Description

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.