STI and DUI innovation modes in micro-, small-, medium- and large-sized firms: distinctive patterns across Europe and the U.S.

Abstract

A growing literature discusses the effectiveness of business innovation modes on innovation performance. In particular, the innovation mode based on the application of science and technology drivers -STI-(e.g. R&D; collaboration with universities) is analysed and compared to the mode based on learning-by-doing, by-using and by-interacting -DUI-(e.g. teamwork, collaboration with suppliers and clients). These modes express the archetypical strategies firms use to innovate. The literature has long identified specificities of small and medium-sized enterprises (SMEs). However, in this study we segment this group of enterprises further and inquire the peculiar innovation modes adopted by these firms as we expect SMEs to be less homogeneous than typically expected. In this work, we distinguish between internal STI and DUI drivers, and external STI and DUI drivers as we expect firms of different sizes to compete through different combinations of these drivers. Complementarily, we investigate the impact of these drivers on innovation output across these different types of firms. The results show the effective adoption of internal STI drivers across micro/small firms, and the well-rounded approach taken by medium-sized firms. Large firms show a more limited effectiveness of external STI and DUI drivers, which seems to be linked to a selective approach to innovation.

Business innovation modes and their impact on innovation outputs: Regional variations and the nature of innovation across EU regions

“…Medicon valley in Denmark/Sweden, biotech cluster in Cambridge) whose critical mass of enterprises generates opportunities for value chain coordination ( Porter, 2008 ). Businesses in these regions are aware of the importance of managing effective supply chain-based collaborations for innovation ( Fitjar and Rodriguez-Pose, 2013 ; Parrilli and Radicic, 2020 ). Based on their very high absorptive capacity ( Parrilli et al., 2016 ), and the capacity to coordinate the contribution of all employees in the firm, and all firms in the chain, we also expect firms in these regions to be able to combine STI and DUI modes effectively.…”

Environmental innovation across SMEs in Europe

“…However, more specifically and according to previous studies on innovation modes (Parrilli and Radicic, 2021) and on environmental innovation (Triguero et al, 2013), we expect SMEs to be able to reap benefits from STI drivers in relation to product-based eco-innovation but not so much in relation to process and non-technological innovation. Instead, we expect to find the DUI drivers to generate impact on eco-innovation through process, organizational and marketing innovation.…”

“…This literature on business innovation modes has produced a large number of contributions that focus on a range of aspects that include the special approach taken in traditional industries, e.g. food industry (Trott and Simms, 2017), and in knowledge-intensive business services (Lee and Miozzo, 2019), the different approach taken by high technology vs traditional industries in emerging economies (Chen et al, 2011, for China), the importance of global vs local STI and DUI collaborations (Fitjar and Rodriguez-Pose, 2013;Parrilli and Alcalde, 2016), a peculiar approach taken by small and medium-sized enterprises (Thomä, 2017;Thomӓ and Zimmermann, 2020;Parrilli and Radicic, 2021) or the innovation mode typically taken by firms in a range of regions classified among leading, strong, moderate and modest innovators (Parrilli et al, 2020) (see Table 1 for a review).…”

“…Echoing previous work on small and medium-sized enterprises (SMEs) and innovation (Parrilli and Elola, 2012;Thomä, 2017;Parrilli and Radicic, 2021;Alhusen and Bennat, 2021), we want to discuss the peculiar approach that SMEs take on production and innovation practices that generate some type of eco-innovations. While Del Rio et al ( 2017) identified a lower capacity of SMEs (vis-à-vis large firms) to produce eco-innovations, Marin et al (2015) identified a significant SME heterogeneity in terms of their access and capacity to eco-innovate (see Table 3 for a review).…”

Does personality matter? Small business owners and modes of innovation

“…Empirical research on the STI/DUI concept acknowledges that actual innovation practices of firms are usually based on a mix of STI and DUI factors. Hence, depending on the nature of this mix, groups of innovating firms can be classified along different points on the DUI-STI continuum, thereby accounting for the stark heterogeneity among innovating SMEs (see Alhusen and Bennat 2020;Apanasovich et al 2016;Parrilli and Elola 2012;Parrilli and Radicic 2020;Thomä and Zimmermann 2020).…”