KTH/CESIS Working Paper Series in Economics and Institutions of Innovation
Innovation Strategies and Firm Performance
() and Sam Tavassoli
Abstract: This paper analyzes the effect of various innovation
strategies of firms on their future performance, captured by labour
productivity. Using five waves of the Community Innovation Survey in
Sweden, we have traced the innovative behaviour of firms over a decade,
i.e. from 2002 to 2012. We distinguish between sixteen innovation
strategies, which compose of Schumpeterian four types of innovations, i.e.
process, product, marketing, and organizational (simple innovation
strategies) plus various combinations of these four types (complex
innovation strategies). The main findings indicate that those firms that
choose and afford to have a complex innovation strategy are better off in
terms of their future productivity in compare with both those firms that
choose not to innovative (base group) and those firms that choose simple
innovation strategies. Moreover, not all types of complex innovation
strategies affect the future productivity significantly; rather, there are
only few of them. This necessitates a purposeful choice of innovation
strategy for firms.
Keywords: Innovation Strategy; firm performance; productivity; firm level; Community Innovation Survey; Panel; (follow links to similar papers)
JEL-Codes: D22; L20; O31; O32; (follow links to similar papers)
31 pages, March 16, 2015
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Vardan Hovsepyan ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom