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How Firms Innovate: R&D, Non-R&D, and Technology Adoption

Can Huang, Anthony Arundel () and Hugo Hollanders ()
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Anthony Arundel: Australian Innovation Research Centre, University of Tasmania, Australia

No 9854, Working Papers from University of Tasmania, Tasmanian School of Business and Economics

Abstract: Non-R&D innovation is a common economic phenomenon, though R&D has been the central focus of policy making and scholarly research in the field of innovation. An analysis of the third European Community Innovation Survey (CIS-3) results for 15 countries finds that almost half of innovative European firms did not perform R&D in-house. Firms with weak in-house innovative capabilities and which source information from suppliers and competitors tend to innovate through non-R&D activities. In contrast, firms that engage in product innovation, find clients, universities and research institutions an important information source for innovation, or apply for patents or use other appropriation methods are more likely to perform R&D. However, non-R&D performers do not form a consistent block, with several notable differences between firms that use three different methods of innovating without performing R&D. Many of these determinants also influence the share of total innovation expenditures that are spent on non-R&D innovation activities. Furthermore, an analysis of the determinants of the share of each firm’s total innovation expenditures for non-R&D activities shows that the factors that influence how innovation expenditures are distributed is generally consistent across sectors and European countries.

Keywords: Non-R&D innovation; Technology adoption; Community Innovation Survey; CIS (search for similar items in EconPapers)
JEL-codes: L13 L60 O31 O32 O33 (search for similar items in EconPapers)
Pages: 62 pages
Date: 2010-07-07, Revised 2012-11-19
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Published by United Nations University. Working Paper 2010-027.

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