Munich Personal RePEc Archive

Determinants of the choice between different innovation regimes amongst firms in the enlarged European Union

Hashi, Iraj and Stojcic, Nebojsa (2013): Determinants of the choice between different innovation regimes amongst firms in the enlarged European Union.

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Abstract

A substantial degree of heterogeneity in the performance and competitiveness of firms can be attributed to their choice between different innovation regimes. These range from small incremental improvements in everyday activities to completely new products or processes; the acquisition of knowledge from external sources to in house innovation activities; and the choice between occasional and continuous innovation. This study focuses on two important questions: what factors and forces influence the decision to pursue a particular innovation regime and how different innovation regimes affect the productivity of firms. The research is based on the 2006 wave of Community Innovation Survey (CIS) for several mature (EU15) and new members of the EU (EU10). Using multinomial logit regression the investigation shows that market orientation, organisational and marketing innovations as well as the presence of demand-driven incentives for innovation have important role in explaining the choice of firms between different innovation regimes. Furthermore, the findings indicate that firms in the new EU members are more inclined towards incremental and internal innovation activities than open innovation regime.

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