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Abstract:
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The objective of this paper is to explore the role played by firms' strategies during
innovation process and its effects on innovation success. We argue that firm's innovative
decisions not only concern how much innovation effort to make but, more especially,
what kind of innovation objectives to pursue, which refer to strategic decisions taken at
the level of the firm. Our econometric analysis is based on a sample of 3,919
manufacturing and services firms taken from the Spanish Technological Innovation Panel
(PITEC) for the period 2008–2012. Firstly, applying a principal component analysis we
identified a diverse range of innovation strategies (no strategy, unfocused, market,
production, cost and environmental and regulatory strategy). Secondly, after controlling
positive skewness of the dependent variables a generalized linear model is used to
exanimate the impact of these innovation strategies. Our empirical results reveal some
relevant aspects. Firstly, firms that do not have a well-defined innovation strategy
experience fewer probability of being a successful innovative firm. Secondly, firms that
do have an innovation strategy, but not focused on any specific orientation, have enhanced
innovation success, but less than that of firms with an oriented strategy. Finally, the results
also show that there is a good fit between an oriented strategy pursued by firms and their
innovation success.
Keywords: innovation objectives, innovation strategy, innovation success, Spain
JEL Classification Numbers: D21. O31. O32 |
