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The Nature of Innovation in R&D- and Non-R&D-Intensive Service Firms: Evidence from Firm-Level Latent Class Analysis

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  • Alexandre Trigo

Abstract

Innovation in services has been largely characterised by the predominance of non-technological innovation and low intensity in research and development (R&D) activities. However, most cross-industry analyses still overlook the organisational character of innovation in services. In this article, we use latent class analysis to examine the nature of innovation in 2148 firms from 20 service industries in Spain. On the basis of the analysis of 10 innovation types and 5 kinds of innovation activities, a taxonomy composed of 2 R&D-intensive and 2 non-R&D-intensive clusters is proposed. The findings indicate that organisational innovation counts for three of the four profiles, the new management techniques being the most common organisational innovation in all clusters. Furthermore, micro- and small-sized firms from several subsectors are more likely to be R&D-oriented than medium and large companies. The results underline the coexistence of different innovation patterns within the same industry as well as the predominance of hidden innovators in several industries.

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  • Alexandre Trigo, 2013. "The Nature of Innovation in R&D- and Non-R&D-Intensive Service Firms: Evidence from Firm-Level Latent Class Analysis," Industry and Innovation, Taylor & Francis Journals, vol. 20(1), pages 48-68, January.
    • Handle: RePEc:taf:indinn:v:20:y:2013:i:1:p:48-68
    DOI: 10.1080/13662716.2013.761380
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    1. Jarle Aarstad & Olav Andreas Kvitastein & Stig-Erik Jakobsen, 2019. "What Drives Enterprise Product Innovation? Assessing How Regional, National, And International Inter-Firm Collaboration Complement Or Substitute For R&D Investments," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(05), pages 1-25, June.
    2. Savastano Marco & Anagnoste Sorin, 2020. "Pioneering Strategies in Retail Settings: An Empirical Study of Successful Practices," Management & Marketing, Sciendo, vol. 15(4), pages 643-663, December.
    3. Xiuying Ma & Fei Jia & Hong Jiang & Xiangyun Xu, 2022. "The Impact of Non-R&D Intangible Capital on TFP Growth: Evidence from Multi-country Industry Level Data," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2890-2910, December.
    4. Esther Goya, 2014. "How Important Are Internal Knowledge Flows for Firms' Innovative Performance in Spain?," Economics Discussion Papers em-dp2014-07, Department of Economics, University of Reading.
    5. Bergner, Sören Martin & Bräutigam, Rainer & Evers, Maria Theresia & Spengel, Christoph, 2017. "The use of SME tax incentives in the European Union," ZEW Discussion Papers 17-006, ZEW - Leibniz Centre for European Economic Research.
    6. Stef Bouwhuis & Dimitris Pavlopoulos & Mauricio Garnier‐Villarreal & Wendy Smits, 2024. "Ad hoc decisions as latent strategies: How do firms use nonstandard employment contracts?," Industrial Relations Journal, Wiley Blackwell, vol. 55(2), pages 81-99, March.
    7. Alexandre Trigo, 2013. "Mechanisms Of Learning And Innovation Performance: The Relevance Of Knowledge Sharing And Creativity For Non-Technological Innovation," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 10(06), pages 1-27.
    8. Juan A. Martínez-Román & Isidoro Romero, 2017. "Determinants of innovativeness in SMEs: disentangling core innovation and technology adoption capabilities," Review of Managerial Science, Springer, vol. 11(3), pages 543-569, July.
    9. Anders Broström & Eric Giertz, 2021. "Service development accounts for an even smaller share of European R&D investments than we may think," The Journal of Technology Transfer, Springer, vol. 46(4), pages 1256-1267, August.
    10. Pantano, Eleonora, 2014. "Innovation drivers in retail industry," International Journal of Information Management, Elsevier, vol. 34(3), pages 344-350.
    11. O'Brien, Kieran, 2020. "Innovation types and the search for new ideas at the fuzzy front end: Where to look and how often?," Journal of Business Research, Elsevier, vol. 107(C), pages 13-24.

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