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The role of demand in innovation: A lead market analysis for high-tech industries in the EU-25

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  • Cleff, Thomas
  • Grimpe, Christoph
  • Rammer, Christian

Abstract

This document presents an indicator-based methodology that attempts to approximate the Lead Market attributes of EU-25 countries for four high-tech industries. A Lead Market is defined as a country where users prefer and demand a specific innovation design that not only appeals to domestic users, but can subsequently be commercialised successfully in other countries as well. A system of five particular country-specific attributes - the so called Lead Market factors - is regarded as critical for the probability of the market becoming a Lead Market. These factors, which influence a country's Lead Market potential, are as follows: price advantage, demand advantage, export advantage, transfer advantage and market structure advantage. The aim of this document is to identify and operationalise indicators to measure and compare the Lead Market properties at international level. The indicators used are taken from the Community Innovation Surveys (CIS-3 and CIS-4), the Eurostat/OECD PPP and Expenditure Database at BH level, the UNCTAD FDI-Database, the EU Business Demography Statistics, and the Eurostat Foreign Trade Database (Comext). Based on the Lead Market analysis, implications for policy makers are outlined.

Suggested Citation

  • Cleff, Thomas & Grimpe, Christoph & Rammer, Christian, 2007. "The role of demand in innovation: A lead market analysis for high-tech industries in the EU-25," ZEW Dokumentationen 07-02, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdok:0702
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    Cited by:

    1. Thomas Cleff & Klaus Rennings, 2011. "Theoretical and Empirical Evidence of Timing-to-Market and Lead Market Strategies for Successful Environmental Innovation," Discussion Papers dp11-01, Department of Economics, Simon Fraser University.
    2. Thomas Cleff & Christoph Grimpe & Christian Rammer, 2009. "Customer - Driven Innovation in the Electrical, Optical and ICT Industry," Interdisciplinary Management Research, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 5, pages 651-682.
    3. Grimpe Christoph & Jessica Mitchell, 2016. "RIO Country Report 2015: Denmark," JRC Research Reports JRC101183, Joint Research Centre.

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