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Organizational Competencies and Innovation Performances: The Case of Large Firms in Belgium

Carine Peeters () and Bruno van Pottelsberghe de la Potterie

No 03-19, IIR Working Paper from Institute of Innovation Research, Hitotsubashi University

Abstract: The objective of this paper is to assess whether large firms' organizational competencies affect their innovation performances. About 40 organizational sub-competencies are defined and measured through an original survey questionnaire answered by 148 large firms in Belgium. The sub-competencies are grouped into seven broad organizational competencies associated with the inovation process. For each broad competence a principal component analysis is run to illustrate whether the sub-competencies are related to three innovation performance indicators, including R&D intensity, the number of patents and the share of sales accounted for by innovative products and processes. The empirical results show that the output related innovation performance indicators (innovative output and the number of patents) are closely related with most organizational competencies, whereas R&D intensity is only correlated with two competencies (developing an innovation culture and using internal funding for innovation). Innovation performance is not only a function of the investment devoted to the creation of new products, processes or services, but also a function of the organizational process underlying innovative activities.

Keywords: Organizational competencies; innovation performance; R&D; principal component analysis (search for similar items in EconPapers)
JEL-codes: L20 L25 O31 O32 O34 (search for similar items in EconPapers)
Date: 2003-09
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