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CIRCLE, Center for Innovation, Research and Competences in the Learning Economy, Lund University Papers in Innovation Studies, CIRCLE, Center for Innovation, Research and Competences in the Learning Economy, Lund University

No 2015/19:
Persistence of Various Types of Innovation Analyzed and Explained

Sam Tavassoli () and Charlie Karlsson ()

Abstract: This paper analyzes the persistency in innovation behavior of firms. Using five waves of the Community Innovation Survey in Sweden, we have traced the innovative behavior of firms over a ten-year period, i.e. between 2002 and 2012. We distinguish between four types of innovations: process, product, marketing, and organizational innovations. First, using Transition Probability Matrix, we found evidence of (unconditional) state dependence in all types of innovation, with product innovators having the strongest persistent behavior. Second, using a dynamic probit model, we found evidence of “true” state dependency among all types of innovations, except marketing innovators. Once again, the strongest persistency was found for product innovators.

Keywords: Persistence; innovation; product innovations; process innovations; market innovations; organizational innovations; state dependence; heterogeneity; firms; Community Innovation Survey; (follow links to similar papers)

JEL-Codes: D22; L20; O31; O32; (follow links to similar papers)

37 pages, May 14, 2015

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