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Effects of organizational innovation

In: Elgar Encyclopedia on the Economics of Knowledge and Innovation

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  • Brian P. Cozzarin

Abstract

Organizational innovation is a relatively new concept in economics. The OSLO manual only mentions organizational innovation in 2005. Thousands of papers exist that investigate organizational innovation. Yet, few of them use a standard definition that aids in comparison. The Oslo definition of organizational innovation is used to screen papers for inclusion in this chapter. This is necessary to limit the scope of the chapter and to have a reasonable comparison of apples to apples. To summarize the literature, three key findings stand out: the adoption of organizational innovation usually enhances firm performance. Also, OI is typically complementary with technical innovation in terms of firm performance, although no universal prescription exists for which types of organizational innovation are "best". Finally, organizational innovation has a positive effect on the likelihood of introducing product and process innovations.

Suggested Citation

  • Brian P. Cozzarin, 2022. "Effects of organizational innovation," Chapters, in: Cristiano Antonelli (ed.), Elgar Encyclopedia on the Economics of Knowledge and Innovation, chapter 14, pages 120-126, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:19760_14
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