Product versus Process: Innovation Strategies of Multiproduct Firms

We investigate the effects of better access to foreign markets on innovation strategies of multiproduct firms in industries with different scope for product differentiation. Industry-specific demand and cost linkages induce a distinction between the returns to innovation. In differentiated industries, cannibalization is lower and firms invest more in product innovation. In homogeneous industries, firms internalize intra-firm spillovers and invest more in process innovation. Using firm-level data and large exchange rate devaluations, we show that better access to foreign markets increases the incentive to innovate. However, we exploit differential effects across industries and show that the innovation strategies depend on the scope of differentiation. (JEL D22, D25, F14, G31, L60, O14, O31)

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Competition and Product Innovation by Turkish Firms

Handbook of Research on Comparative Economic Development Perspectives on Europe and the MENA Region - Advances in Finance, Accounting, and Economics ◽

10.4018/978-1-4666-9548-1.ch019 ◽

2016 ◽

pp. 469-491

Author(s):

Fatma Nur Karaman Kabadurmus ◽

Sajal Lahiri

Keyword(s):

Research And Development ◽

Linear Relationship ◽

Product Innovation ◽

Strong Support ◽

Business Environment ◽

Process Innovation ◽

Enterprise Performance ◽

Firm Level ◽

Level Data ◽

Firm Level Data

This chapter examines empirically the determinants of research and development (R&D) activities by Turkish firms. It focuses on the question of how competition affects product innovation, and not process innovation, in Turkey. In particular, we test if there is a non-linear relationship between R&D activities of a firm and the degree of competition in that industry. We use Turkish firm-level data from the Business Environment and Enterprise Performance Survey (BEEPS) and find strong support for an inverted-U relationship between the two variables.

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A Taxonomy of Eco-Innovation Types in SMEs: Exploring Different Firm Profiles in the Canadian Wine Industry

Sustainability ◽

10.3390/su11205776 ◽

2019 ◽

Vol 11 (20) ◽

pp. 5776 ◽

Cited By ~ 1

Author(s):

David Doloreux ◽

Luisa Kraft

Keyword(s):

Wine Industry ◽

Firm Characteristics ◽

Firm Level ◽

Fully Integrated ◽

Level Data ◽

Firm Level Data ◽

Innovation Strategies ◽

Process Oriented

The paper examines eco-innovation strategies in the Canadian wine industry. It uses firm-level data of 151 wine firms that developed eco-innovations between 2015 and 2017 to build a taxonomy of four eco-innovation strategies: (i) eco-innovation laggers, (ii) product-oriented eco-innovators, (iii) process-oriented eco-innovators, and (iv) fully integrated eco-innovators. We then characterize these eco-innovation strategies with respect to firm-level innovation capabilities, firms’ knowledge openness, and firms’ specific characteristics. The results reveal heterogeneity in eco-innovation strategies and show that these strategies exhibit different configurations of innovation-related conditions and firm characteristics.

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