mixed modes of innovation: integrating technological and

Mixed modes of innovation: integrating technological and non technological forms

Mixed modes of innovation

• a set of activities which are done together or hang together and form a specific strategy or routine of firms

• are derived through factor analyses of micro data using a harmonized approach across countries

• modes have a different impact on productivity and growth in individual countries

• so reinforce the relevance of national contexts to policy

Mixed modes of innovation

1. IP/technology innovating

2. Marketing based innovating

3. Process modernizing

4. Wider innovating

5. Networked innovating

Mixed Modes of Innovation Generic modes based on weighted factor loadings across 18 countries

Measures feeding into the factor analysis

IP /

technology innovating

Marketing

based innovating

Process

modernizing Wider

innovating Networked

innovating

1 NEWFRM 0.09 0.73 -0.03 0.04 0.07

2 NEWMKT 0.35 0.60 -0.05 0.06 0.17

3 INPCS 0.02 -0.18 0.68 0.23 0.04

4 ORGSYS 0.05 0.03 0.11 0.64 0.21

5 ORGSTR 0.06 0.03 0.11 0.69 0.18

6 ORGREL 0.09 0.04 0.10 0.48 0.15

7 MKTDES 0.14 0.28 0.04 0.54 -0.01

8 MKTMET 0.11 0.23 0.01 0.44 -0.09

9 RRDIN 0.46 0.26 0.03 0.05 0.45

10 PROPAT 0.80 0.10 0.01 0.01 0.18

11 RMAC 0.05 0.07 0.67 0.06 0.08

12 PRODSG 0.77 0.11 0.06 0.09 0.02

13 PROCP 0.66 -0.02 0.02 0.12 0.04

14 RTR 0.14 0.24 0.41 0.24 0.17

15 RMAR 0.35 0.43 0.14 0.23 0.20

16 EXTINN -0.28 -0.06 0.40 -0.12 -0.36

17 SOURCING 0.29 0.19 0.26 0.13 0.44

18 INFOMKT 0.09 0.31 0.32 0.17 0.15

19 INFOKB 0.17 -0.01 0.10 0.14 0.54

20 CO 0.25 0.16 0.18 0.11 0.53

Mixed Modes of Innovation

Services and other sectors

Selected Countries

-1

-0.5

0

0.5

1 Austria

Belgium

Canada

Chile

Denmark

Germany

Korea Luxembourg

Netherlands

Italy

S.Africa

Spain

UK

Vehicles by country

IP/technology innovating (collaborative)

Wider innovating

External process modernizing

Market-led following

Networked innovating

-0.8

-0.6

-0.4

-0.2

0

0.2

0.4

0.6

0.8

Austria

Belgium

Chile

Denmark

Germany

Luxembourg Netherlands

Italy

S.Africa

Spain

UK

Wholesale

IP/technology innovating (collaborative) Wider innovating

External process modernizing Market-led following

Networked innovating

-0.5

-0.4

-0.3

-0.2

-0.1

0

0.1

0.2

0.3

0.4

Austria

Belgium

Denmark

Germany

Italy

Lux

Netherlands

S.Africa

Spain

UK

Kibs and other technical services

IP/technology innovating (collaborative) Wider innovating

(External)process modernizing Market-led /leading

Networked innovating

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

textiles paper,publishig vehicles transport post and telecoms kibs

Austria- Selected Sectors

IP/technology innovating (collaborative) Wider innovating

External process modernizing Market-led following

Networked innovating

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

primary, extraction textiles machinery other manufacturing construction kibs

Chile-selected sectors

Wider innovating Market based innovating Long-term/technology innovators Process modernizing Networked

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

machinery utilities post and telecoms financial services, insurances

kibs

Denmark - Selected sectors

Business process modernizing Market and design led innovating Market leading innovating

Networked innovating (with own tech) External process innovating

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

textiles machinery vehicles wholesale, trade financial services, insurances

kibs

Germany - Selected Sectors

IP/techn innovating (collaborative) Networked innovating

Wider innnovating Process modernizing (external)

Market leading product innovating

-80%

-60%

-40%

-20%

0%

20%

40%

60%

metal products vehicles construction hotels and restaurants

financial services, insurances

kibs

Netherlands-selected sectors

Wider innovating IP/techn innovating Market leading innovating

Networked innovating External process modernizing

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

food, beverages machinery vehicles hotels and restaurants

transport kibs

Italy-Selected sectors

IP/techn innovating (internal) Wider innovating Market leading

Networked innovating External process modernizing

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

textiles vehicles hotels and restaurants

post and telecoms financial services, insurances

kibs

UK - Selected Sectors

IP/sources Open process modernizing Wider innovating

Market leading innovating Networking with own techn

Country PRODUCTIVITY

IP/technology

innovating

Marketing

based

innovating

Process

modernizing

Wider

innovating

Networked

innovating

Australia + -

Austria + + + +

Belgium

Canada +

Chile + +

Denmark + +

Iceland

Korea + + +

Luxembourg + +

Netherlands + + + +

Spain +

UK + + +

Conclusions and Implications.

• There is a set of Core Modes, broadly similar but more or less subtly varied across countries.

• And all countries have at least one very distinctive mode.

• Different modes have a significant impact on performance in different countries.

• And this varies with whether productivity or growth is the performance variable.

Conclusions and Implications.

• Forms (modes) of innovation not confined to the fashionable New Forms.

• So in formulating a policy mix, national and international bodies need to be aware of heterogeneity of modes at national and industry level and the interdependencies of inputs, outputs and systemic links

• Clear cut “Open –Innovation” does not emerge as a well defined single strategy, though there is a broader “networking” mode.

• The innovation systems variables – information and collaboration – modify the core factors generally.