Abstract
Low-technology industry is still commonly regarded as an assistant role in the modern process of innovation and economic change. However, we believe that innovation may happen in all different types of industries and firms, including low-technology firms. The aim of this paper is to analyze the types of innovation in low-tech intensity industries of emerging markets. We conduct an exploratory study in 21 low-tech firms in Brazil. The results suggest that even firms with low technological intensity can be considered innovative, although they presented a different view regarding to changes, innovation and competitive differential. Considering that innovative performance is a result of four capabilities, the operational and transactional capabilities seem to be the most important for low-tech industry.
Highlights
In innovation research, this term “low-technology denotes the industrial sectors that have no or low R&D expenditures
Schumpeter (1942) understands that innovation drives the economic development of societies
Firms that innovate will present a combination of different capabilities, being one more prevalent than other, which allow firms of lower technological intensity to develop its innovative capability
Summary
This term “low-technology denotes the industrial sectors that have no or low R&D expenditures. Schumpeter (1942) understands that innovation drives the economic development of societies. He mentions that the fundamental impulse that sets and keeps the capitalist engine in motion comes from the new consumers’ goods, the new methods of production or transportation, the new markets, the new forms of industrial organization that capitalist enterprise creates (Schumpeter, 1942). New methods of production, new markets, and so on, may occur in different industries, no matter of what technological intensity it is, i.e.: high-technology or low-technology. Firms that innovate will present a combination of different capabilities, being one more prevalent than other, which allow firms of lower technological intensity to develop its innovative capability
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