The Adoption and Diffusion of Organizational Innovation: Evidence for the U.S. Economy

53 Pages Posted: 27 Jun 2007 Last revised: 14 Dec 2022

See all articles by Lisa M. Lynch

Lisa M. Lynch

Tufts University - The Fletcher School of Law and Diplomacy; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

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Date Written: June 2007

Abstract

Using a unique longitudinal representative survey of both manufacturing and non-manufacturing businesses in the United States during the 1990's, I examine the incidence and intensity of organizational innovation and the factors associated with investments in organizational innovation. Past profits tend to be positively associated with organizational innovation. Employers with a more external focus and broader networks to learn about best practices (as proxied by exports, benchmarking, and being part of a multi-establishment firm) are more likely to invest in organizational innovation. Investments in human capital, information technology, R&D, and physical capital appear to be complementary with investments in organizational innovation. In addition, non-unionized manufacturing plants are more likely to have invested more broadly and intensely in organizational innovation.

Suggested Citation

Lynch, Lisa M., The Adoption and Diffusion of Organizational Innovation: Evidence for the U.S. Economy (June 2007). NBER Working Paper No. w13156, Available at SSRN: https://ssrn.com/abstract=992159

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