Abstract

In this paper, we join the debate on business innovation modes that originates from the wider literature on innovation systems. These specific contributions identify and study the impact of different innovation modes, particularly the mode focused on scientific and technologically-based innovation (STI) vs. the mode based on learning-by-doing, by-using, and by-interacting (DUI). Echoing the seminal contribution by Jensen et al. (2007) and a range of other studies, we confirm the importance of the combined STI&DUI interaction mode, which has a stronger impact on innovation output (technological and non-technological) than the two separate individual modes. Additionally, we propose a novel hypothesis on the effectiveness of firm's interaction modes. We argue that the independent STI mode has a stronger effect on technological innovation, whereas the independent DUI mode has a stronger impact on non-technological innovation. In addition, in line with works on the geography of innovation, and innovation systems, we try to determine the impact of regional vs. global DUI and STI interactions on technological and non-technological innovations. In this case, we expect that in diverse geographic locations, businesses tend to adopt their own context-specific interaction modes, which produce a differentiated impact on innovation output. This study is applied to a large sample of firms in the context of the Basque Autonomous Community in Spain.

Highlights

  • We join the debate on business innovation modes that is derived from the wider literature on innovation systems (Lundvall, 1992, 2007; Jensen et al, 2007)

  • This study proposes a novel hypothesis on the effectiveness of business innovation modes

  • “Size”, “international market” and belonging to a business group’ exercise a significant impact on non-technological innovation. This evidence is in line with the former study of Fitjar and Rodriguez-Pose (2013) that indicated that global-DUI collaborations and regional-scientific and technology-based innovation (STI) and global-STI are relevant for technological innovations, while DUI-regional are not

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Summary

Introduction

We join the debate on business innovation modes (i.e., approaches to produce effective innovation outputs) that is derived from the wider literature on innovation systems (Lundvall, 1992, 2007; Jensen et al, 2007). Echoing the seminal contribution by Jensen et al (2007) and a range of other studies (Isaksen and Karlsen, 2010; Aslesen et al, 2011; Chen et al, 2011; Parrilli and Elola, 2012; Fitjar and Rodriguez-Pose, 2013; Nunes et al, 2013), we analyse in particular whether the combined STI&DUI interaction mode has a stronger impact on innovation output than the two separate individual modes. In line with the work of Fitjar and Rodriguez-Pose (2013) on the geography of innovation, we attempt to determine the contextspecificity of these business interactions and innovation modes and their impact on the range of innovation outcomes Through this analysis, we assess the impact of the proposed technology-based divide in synergy with the potential effect of cultural, institutional and social idiosyncrasies on the geographical reach (global vs local) of STI and DUI interaction modes.

Innovation modes and types of innovation
The context-specificity of innovation modes
Sample and data
Measures
Descriptive statistics
Econometric results
Findings
Concluding remarks
Full Text
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