Determinants of persistence in innovation: evidence from the case study of the ‘Eye Microsurgery’ Complex

Abstract

This study aims at determining the major factors supporting innovative persistence based on an in-depth analysis of the internal organizational processes of the state-owned medical institution, ‘Eye Microsurgery’ Complex in Moscow. I propose a systemic approach to the study of innovation activities, which incorporates aspects of evolutionary economics, institutional analysis and dynamic capabilities theory. The study explicitly incorporates the changing external environment as a factor shaping innovation dynamics. The findings suggest that at the earliest stage of the firm's development, the interaction between the nature of the technology and the nature of the demand, the presence of prolific innovators and a certain organizational structure that supports learning, effective knowledge production and accumulation are determinant of persistence in innovation. In later periods, the availability of resources (material, financial, specialized human capital), external collaborations, specific production techniques, well-organized technological diffusion, and motivational factors are the elements providing the basis for innovative persistence. Leadership plays a crucial role in supporting innovation and organizational transformation.