2021/40 LEM Working Paper Series

Innovation pattern heterogeneity: A data-driven retrieval of the firms’ approaches to innovation

Marco Capasso and Marina Rybalka
Technological change; Innovation survey; Factor analysis; Business strategies; Intra-industry heterogeneity.

  JEL Classifications
O31, O32, O33
Innovation is one of the usual suspects in defining differences in performance among firms, according to a strong and diverse theoretical framework. Understanding the diversity that exists within the population of innovative firms is essential to elaborate appropriate innovation policies. Our study explores the diversity of innovation patterns among Norwegian firms included in the 2018 Community innovation survey (CIS2018). By applying factor analysis on a wide array of survey variables and on a large sample of firms, we identify eleven typical approaches to innovation, which recurrently connect innovation inputs and outputs at firm level. A main outcome of our study is a renewed fine-grained view on innovation as a multifaceted concept.
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