Non-technological and technological innovation: Strange Bedfellows?


Schmidt, Tobias ; Rammer, Christian


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URL: http://ub-madoc.bib.uni-mannheim.de/1624
URN: urn:nbn:de:bsz:180-madoc-16249
Document Type: Working paper
Year of publication: 2007
The title of a journal, publication series: None
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 300 Social sciences, sociology, anthropology
Classification: JEL: O31 L25 O30 ,
Subject headings (SWD): Innovation , Organisationswandel , Marketing , Technischer Fortschritt , Rentabilität , Unternehmensentwicklung , Schätzung , Deutschland
Keywords (English): organisational innovation , marketing innovation, effects of innovation , CIS 4
Abstract: Non-technological innovation is an important element of firms’ innovation activities that both supplement and complement technological innovation, i.e. the introduction of new products and new processes. We analyse the spread of nontechnological innovation in firms, their relation to technological innovation, and their effects to firm performance and success with product and process innovation, using data from the German Community Innovation Survey conducted in 2005 (German CIS 4). Non-technological innovation is defined as the introduction of new organisational methods or the introduction of new marketing methods. We find that the determinants of a firm’s propensity to introduce technological and non-technological innovations are very similar and that both types are closely related. There are only small effects of nontechnological innovation on a firm’ profit margin, which contrasts the strong effects to be found from technological innovation. However, non-technological innovation spurs success with product and process innovation terms of sales with market novelties and cost reductions from new processes.
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