Mixed Modes of Innovation

This study uses exploratory data analysis techniques to develop typologies of innovation modes or strategies for groups of firms. Analysing micro-level survey data from 18 countries we identify five innovation modes. The coherence and relevance of the innovation modes is tested by using them as explanatory factors in equations explaining economic performance. In most countries one or more innovation modes are positively associated with labour productivity. However, there is no consistent cross-country pattern as to which modes show significant associations with productivity. Even if common innovation patterns have been identified, there is no ‘single’ mode or form of innovation across countries that underlies the overall impact of innovation and there appear to be major national differences in patterns of competitive and comparative advantage with respect to levels of productivity as well as growth in turnover and employment. Importantly, sectoral innovation orientations are embedded in national systems, as well as exhibiting a degree of convergence at sectoral level.