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Patterns of Innovation Capabilities in KIBS Firms: Evidence from the 2003 Statistics Canada Innovation Survey on Services

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  • Nabil Amara
  • Rejean Landry
  • Norrin Halilem
  • Namatie Traore

Abstract

The aim of this paper is to shed light on complementarities and substitutions between various types of innovation capabilities in knowledge-intensive-based service (KIBS) firms. The data used in this study are the responses of 2,625 innovative firms to the 2003 Statistics Canada Innovation Survey on services. The empirical results suggest the presence of three patterns of complementary innovation capabilities, one pattern of substitute activities and finally, four patterns of innovation capabilities that are independent from each other. Hence, the results suggest the presence of complementarities: first, between internal R&D, external R&D, acquisition of equipment and machinery, and marketing activities; second, between external R&D, acquisition of equipment and machinery, acquisition of external knowledge and marketing activities; third, between acquisition of equipment and machinery, acquisition of external knowledge and marketing activities. Such complementarities lead to the conclusion that, in practice, managers of KIBS firms consider the consolidation of these capabilities jointly instead of separately. The paper also discusses issues related to patterns of capabilities that are substitutes and independent from each other. The results of this study also show significant heterogeneity in the determinants of the different patterns of innovation capabilities.

Suggested Citation

  • Nabil Amara & Rejean Landry & Norrin Halilem & Namatie Traore, 2010. "Patterns of Innovation Capabilities in KIBS Firms: Evidence from the 2003 Statistics Canada Innovation Survey on Services," Industry and Innovation, Taylor & Francis Journals, vol. 17(2), pages 163-192.
    • Handle: RePEc:taf:indinn:v:17:y:2010:i:2:p:163-192
    DOI: 10.1080/13662711003633371
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    References listed on IDEAS

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    1. Claude LACOUR & Sylvette PUISSANT, 2008. "Medium-Sized Cities and the Dynamics of Creative Services," Cahiers du GREThA (2007-2019) 2008-08, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    2. Charlie Karlsson & Börje Johansson, 2012. "Knowledge, Creativity and Regional Development," Chapters, in: Charlie Karlsson & Börje Johansson & Roger R. Stough (ed.), The Regional Economics of Knowledge and Talent, chapter 2, Edward Elgar Publishing.
    3. Susan Athey & Scott Stern, 1998. "An Empirical Framework for Testing Theories About Complimentarity in Organizational Design," NBER Working Papers 6600, National Bureau of Economic Research, Inc.
    4. Christ, Julian P., 2007. "Varieties of systems of innovation: A survey of their evolution in growth theory and economic geography," Violette Reihe: Schriftenreihe des Promotionsschwerpunkts "Globalisierung und Beschäftigung" 25/2007, University of Hohenheim, Carl von Ossietzky University Oldenburg, Evangelisches Studienwerk.
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    Cited by:

    1. Heredia Pérez, Jorge A. & Geldes, Cristian & Kunc, Martin H. & Flores, Alejandro, 2019. "New approach to the innovation process in emerging economies: The manufacturing sector case in Chile and Peru," Technovation, Elsevier, vol. 79(C), pages 35-55.
    2. D'Este, Pablo & Amara, Nabil & Olmos-Peñuela, Julia, 2016. "Fostering novelty while reducing failure: Balancing the twin challenges of product innovation," Technological Forecasting and Social Change, Elsevier, vol. 113(PB), pages 280-292.
    3. Rodriguez, Mercedes & Doloreux, David & Shearmur, Richard, 2017. "Variety in external knowledge sourcing and innovation novelty: Evidence from the KIBS sector in Spain," Technovation, Elsevier, vol. 68(C), pages 35-43.

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