Abstract
This empirical study compares the determinants of innovation in manufacturing and services through descriptive and regression analyses of sales from innovative products and services. A particular focus is on the effects of R&D investments and breadth in knowledge sourcing and innovation objectives. The results suggest that, contrary to earlier research, R&D investments play a statistically and economically significant role in service innovation. We suggest that this results from the growing engagement of service firms in regular R&D activity. Both service and manufacturing firms also benefit from breadth in external knowledge sourcing strategies. In contrast, breadth in terms of pursuing parallel innovation objectives appears to have detrimental effects on innovation in service industries. We interpret the latter results through reference to service firms' R&D management capabilities: Managing multiple innovation projects is challenging, and some service firms may not have accumulated the requisite managerial processes and capabilities to benefit from these strategies. The available data provide support for this conjecture. The detrimental effects of breadth in innovation objectives are significantly mitigated by regular R&D activities. Copyright 2012 The Author 2012. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
