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Product–process matrix and complementarity approach

Manuel Guisado-González (), Len Tiu Wright () and Manuel Guisado-Tato ()
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Manuel Guisado-González: Universidad de Extremadura
Len Tiu Wright: University of Huddersfield
Manuel Guisado-Tato: Universidad de Vigo

The Journal of Technology Transfer, 2017, vol. 42, issue 3, 441-459

Abstract: Abstract The relationship between different types of innovation is analysed from three different approaches. On the one hand, the distinctive view assumes that the determinants of each type of innovation are different and therefore there is no relationship between them. On the other hand, the integrative view considers that the different types of innovation are complementary. Finally, the product–process matrix framework suggests that the relationship between product innovation and process innovation is substitutive. Using data from Spain belonging to the Technological Innovation Panel (PITEC) for the years 2008, 2009, 2010, 2011 and 2012, we tested which of the three approaches is predominant. To perform the hypothesis test, we used the so-called complementarity approach. We find that there is no unique relation. The nature of the relationship depends on the types of innovation that interact. Our most significant finding is that the relationship between product innovation and process innovation is complementary. This finding contradicts the proposal of the product–process matrix framework. Consequently, the joint implementation of both types of innovation generates a greater impact on the performance of a company than the sum of their separate implementations.

Keywords: Product innovation; Process innovation; Organizational innovation; Product–process matrix; Complementarity approach (search for similar items in EconPapers)
JEL-codes: O31 O32 (search for similar items in EconPapers)
Date: 2017
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