Are Complex Innovators More Persistent than Single Innovators? An Empirical Analysis of Innovation Persistence Drivers

Abstract

This paper examines the persistence of innovation behaviour at the firm level (manufacturing and services sectors). We attempt to answer the question: does being successful in past innovation activities increase the probability of being successful in current innovation activities? We contribute to the literature by explicitly distinguishing between single and complex innovation strategies. Using two waves of the Community Innovation Survey (2002–2004, 2006–2008) conducted in Luxembourg, the regressions show that complex innovators are more inclined to remain persistent innovators than single innovators. Within the group of single innovators pure product innovators have an advantage over pure process innovators. The results support the idea that the differences in innovation strategies across firms are important for understanding the firm innovation dynamics.

Keywords: Innovation, Persistence, Single and Complex Innovators, CIS

JEL Classification: O31