Technological Regimes and the Variety of Innovation Behaviour: Creating Integrated Taxonomies of Firms and Sectors

Abstract

This paper presents an integrated set of innovation taxonomies for firms and sectors. It discards the practice of representing industries by some average behaviour, instead characterising them by the distribution of diverse innovation modes at the firm level. The theoretical focus is on (i) Schumpeter’s distinction between ‘creative’ and ‘adaptive response,’ and (ii) differences regarding technological opportunities, appropriability conditions and the cumulativeness of knowledge. Applying statistical cluster analysis, the empirical identification is based on the micro-data of the Community Innovation Survey (CIS) for 22 European countries. The final cluster validation highlights the simultaneous diversity and contingency of firm behaviour with distinct technological regimes exhibiting systematic differences in the distribution of heterogenous firms.

Keywords: Technological Regimes, Innovation Modes, Sectoral Taxonomy, Industry Classification

JEL Classification: D21, D28, O31, O33, O34