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How Firms Innovate: R&D, Non-R&D, and Technology Adoption

Huang, C, Arundel, A and Hollanders, H 2010 , How Firms Innovate: R&D, Non-R&D, and Technology Adoption.

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Non-R&D innovation is a common economic phenomenon, though R&D has been the central
focus of policy making and scholarly research in the field of innovation. An analysis of the third
European Community Innovation Survey (CIS-3) results for 15 countries finds that almost half
of innovative European firms did not perform R&D in-house. Firms with weak in-house
innovative capabilities and which source information from suppliers and competitors tend to
innovate through non-R&D activities. In contrast, firms that engage in product innovation, find
clients, universities and research institutions an important information source for innovation, or
apply for patents or use other appropriation methods are more likely to perform R&D. However,
non-R&D performers do not form a consistent block, with several notable differences between
firms that use three different methods of innovating without performing R&D. Many of these
determinants also influence the share of total innovation expenditures that are spent on non-R&D
innovation activities. Furthermore, an analysis of the determinants of the share of each firm’s
total innovation expenditures for non-R&D activities shows that the factors that influence how
innovation expenditures are distributed is generally consistent across sectors and European

Item Type: Report (Working Paper)
Authors/Creators:Huang, C and Arundel, A and Hollanders, H
Keywords: Non-R&D innovation, Technology adoption, Community Innovation Survey, CIS, repec R&D, Innovation
Publisher: United Nations University
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