Is Service Innovation Different?

Aija Leiponen

No 1151, Discussion Papers from The Research Institute of the Finnish Economy

Abstract: This exploratory empirical study compares the determinants of innovation in manufacturing and services through descriptive and regression analyses of sales from innovative products and services. The results suggest that, contrary to earlier research, R&D investments play a positive and significant role in both services and manufacturing. Service firms also benefit from broad strategies of sourcing external information. In contrast, strategic breadth in terms of pursuing multiple different innovation objectives or cooperating with different types of partners appears to have detrimental effects on service innovation. We interpret the latter results through reference to service firms R&D and alliance management capabilities : Managing multiple innovation projects or multiple cooperative arrangements is challenging, and some service firms may not have accumulated the requisite managerial capabilities to benefit from these strategies. The available data provide partial support for this conjecture.

JEL-codes: L8 O31 O32 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2008
New Economics Papers: this item is included in nep-ino, nep-knm, nep-mic and nep-ppm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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