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Firms’ Innovation Strategies Analyzed and Explained

Author

Listed:
  • Tavassoli , Sam

    (CIRCLE, Lund University and Blekinge Institute of Technology, Karlskrona)

  • Karlsson , Charlie

    (Blekinge Institute of Technology, Karlskrona, Centre of Excellence for Science and Innovation Studies, KTH, Stockholm and Jönköping International Business School)

Abstract
This paper analyzes various innovation strategies of firms. Using five waves of the Community Innovation Survey in Sweden, we have traced the innovative behavior of firms over a ten-year period, i.e. between 2002 and 2012. We distinguish between sixteen innovation strategies, which compose of Schumpeterian four types of innovations (process, product, marketing, and organizational) plus various combinations of these four types. First, we find that firms are not homogenous in choosing innovation strategies, instead, they have a wide range of preferences when it comes to innovation strategy. Second, using Transition Probability Matrix, we found that firms also persist to have such a diverse innovation strategy preferences. Finally, using Multinomial Logit model, we explained the determinant of each and every innovation strategies, while we gave special attention to the commonly used innovation strategies among firms.

Suggested Citation

  • Tavassoli , Sam & Karlsson , Charlie, 2015. "Firms’ Innovation Strategies Analyzed and Explained," Papers in Innovation Studies 2015/14, Lund University, CIRCLE - Centre for Innovation Research.
    • Handle: RePEc:hhs:lucirc:2015_014
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    2. Sam Tavassoli & Lars Bengtsson, 2018. "The Role Of Business Model Innovation For Product Innovation Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(07), pages 1-28, October.
    3. Mounir Amdaoud & Christian Bas, 2021. "Patent Determinants for SMEs in Least-Developed Countries: How Enterprise Size Makes the Difference," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 943-961, June.
    4. Anzola-Román, Paula & Bayona-Sáez, Cristina & García-Marco, Teresa, 2018. "Organizational innovation, internal R&D and externally sourced innovation practices: Effects on technological innovation outcomes," Journal of Business Research, Elsevier, vol. 91(C), pages 233-247.
    5. Gema García‐Piqueres & Rebeca García‐Ramos, 2020. "Is the corporate social responsibility–innovation link homogeneous?: Looking for sustainable innovation in the Spanish context," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 803-814, March.
    6. Tavassoli, Sam & Karlsson, Charlie, 2021. "The role of location on complexity of firms’ innovation outcome," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    7. Bingqiang Li & Jing Yu & Lei Huang & Jinzhi Li & Changhan Luo, 2021. "Coupling Development of Manufacturing Promotion and Innovation in China," SAGE Open, , vol. 11(4), pages 21582440211, October.
    8. Dr. Ishtiyaque Ahmed, 2023. "An Overview on the Crucial Nature of Innovation Strategies for Sustainable Businesses," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 14(3), pages 21-29, September.
    9. Bingqiang Li & Lei Huang, 2019. "The Effect of Incremental Innovation and Disruptive Innovation on the Sustainable Development of Manufacturing in China," SAGE Open, , vol. 9(1), pages 21582440198, February.
    10. Mounir Amdaoud & Christian Le Bas, 2020. "Firm Patenting and Types of innovation in Least Developed Countries. An Empirical Investigation on Patenting Determinants," CEPN Working Papers hal-03059466, HAL.
    11. Edeh, Jude Ndubuisi & Obodoechi, Divine Ndubuisi & Ramos-Hidalgo, Encarnación, 2020. "Effects of innovation strategies on export performance: New empirical evidence from developing market firms," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    12. Stefano Bianchini & Federico Tamagni & Gabriele Pellegrino, 2016. "Innovation strategies and firm growth," Working Papers 2016/10, Institut d'Economia de Barcelona (IEB).
    13. Arranz, N. & Arroyabe, M.F. & Li, Jun & de Arroyabe, J.C. Fernandez, 2019. "An integrated model of organisational innovation and firm performance: Generation, persistence and complementarity," Journal of Business Research, Elsevier, vol. 105(C), pages 270-282.
    14. Cristian Barra & Nazzareno Ruggiero, 2023. "Quality of Government and Types of Innovation—Empirical Evidence for Italian Manufacturing Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1749-1789, June.
    15. Enas Nadher Al-Baghdadi & Ahmad Abu Alrub & Husam Rjoub, 2021. "Sustainable Business Model and Corporate Performance: The Mediating Role of Sustainable Orientation and Management Accounting Control in the United Arab Emirates," Sustainability, MDPI, vol. 13(16), pages 1-26, August.
    16. Leogrande, Angelo, 2024. "The Propensity for Patenting in the Italian Regions," SocArXiv p4exf, Center for Open Science.
    17. Rudawska Edyta & Frąckiewicz Ewa & Wiścicka-Fernando Małgorzata, 2018. "Socio-Ecological Innovations in Marketing Strategy – A Comparative Analysis Of Companies Operating in Western European Countries and Central-Eastern European Countries," Economics and Business Review, Sciendo, vol. 4(3), pages 51-68, July.
    18. Andriana G. Dimakopoulou & Nikos Chatzistamoulou & Kostas Kounetas & Kostas Tsekouras, 2023. "Environmental innovation and R&D collaborations: Firm decisions in the innovation efficiency context," The Journal of Technology Transfer, Springer, vol. 48(4), pages 1176-1205, August.
    19. Istipliler, Baris & Bort, Suleika & Woywode, Michael, 2023. "Flowers of adversity: Institutional constraints and innovative SMEs in transition economies," Journal of Business Research, Elsevier, vol. 154(C).
    20. Peter Bogetoft & Lene Kroman & Aleksandrs Smilgins & Anders Sørensen, 2024. "Innovation strategies and firm performance," Journal of Productivity Analysis, Springer, vol. 62(2), pages 175-196, October.
    21. Carlos Martin-Rios & Eva Parga-Dans & Susana Pasamar, 2019. "Innovation strategies and complementarity between innovation activities: the case of commercial archaeological firms," Service Business, Springer;Pan-Pacific Business Association, vol. 13(4), pages 695-713, December.
    22. Hakyeon Lee & Pilsung Kang, 2018. "Identifying core topics in technology and innovation management studies: a topic model approach," The Journal of Technology Transfer, Springer, vol. 43(5), pages 1291-1317, October.

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    More about this item

    Keywords

    Innovation strategy; product innovations; process innovations; market innovations; organizational innovations; innovation strategies; heterogeneity; firms; persistence; Community Innovation Survey;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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