Summary: The Economic Impact Of Technological And Organizational Innovations

Read the summary and the most important questions on The economic impact of technological and organizational innovations

• 1 Introduction

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• What is the purpose of the paper?

  
  

  1. Investigate the extent to which non-technological innovations are complements or substitutes of technological innovations
     
  2. Investigate the relative importance of technological and organizational changes as drivers of firms’ economic performances
     
  3. Investigate whether there are differences in the relevance and economic impact of these two different forms of innovations
     

• What are product innovations?

  Provide firms with a competitive advantage via the technological novelty and improved performances of the product. 

• What are process innovations?

  Provide a competitive advantage via the efficiency/productivity gains obtained through the introduction of more performing ways of producing (pre-existing) products. 

• What is the Schumpeterian perspective on selection mechanisms?

  
  In Schumpeterian perspective of selection mechanism, both product and process innovation should in turn give a competitive premium in terms of above average growth rates and market share gains.

• Which 3 main complications emerge when the framework and the emprirical analysis of the innvoation-performance relationship are extended to services?

  1. Relevance and effectiveness – in the case of service industries – of the traditional distinction between product and process innovation;
     
  2. Need of broadening the concept of innovation beyond the technological domain
     
  3. Difficulties of measuring economic outputs and performances (productivity) in many service industries.
     

• 2 Looking for "innovation modes" in manufacturing and service industries

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• What are "innovation modes"? 

  The possibility of synthesizing (in an effective way) the highly heterogeneous nature of firms’ innovative behaviors into a manageable and interpretable set of typologies of innovation practices, strategies and performances. 

• Which 4 clusters can be interpreted as distinct innovation modes?

  1. Product oriented
  2. Process oriented
  3. Organizational
  4. Complex

• What are product oriented innovation modes?

  
  These firms have introduced only product innovation, often accompanied with a marketing one

• Where do product oriented modes attach high importance?

  Attach high importance to objectives such as increasing the range of goods or services, enter in new markets or increase market share and improve quality of goods or service as well as by the relatively high share of sales related to new or improved products and services.

• Where are product innovation modes most relevant?

  They are more relevant in the manufacturing sector than it is in services industries.