The innovation decision: An economic analysis

Du, Jun; Love, James H.; Roper, Stephen

doi:10.1016/j.technovation.2007.05.008

Cited by 34 publications

(51 citation statements)

References 22 publications

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“…μi is the error term. Du et al (2007) propose two alternative models of innovation decision-making. The first, a one-stage model, represents the business as making a one-off choice between four discrete alternatives.…”

Section: Methodsmentioning

confidence: 99%

“…In our empirical examination of firm level innovation, we follow the Du et al (2007) approach. We adopt the innovation production function approach and test whether a onestage or two-stage model of the innovation process best predicts innovative activity.…”

Section: Methodsmentioning

confidence: 99%

“…To date, no researchers have empirically tested and compared the one-and two-stage models as proposed by Du et al (2007). Our empirical analysis will allow us to determine which model best explains innovation decision-making.…”

Section: Methodsmentioning

confidence: 99%

“…Du, Love and Roper (2007) note the lack of research into the innovation decision-making process, and suggest that a better understanding of these distinct aspects of the innovation process are required.…”

Section: Conceptual Frameworkmentioning

confidence: 99%

“…In line with Du, Love and Roper (2007), we test the performance of two alternative models of the innovation process. In other words, we test the assumption that the innovation process consists of a decision to product and/or process innovate (a one-step approach) by providing an alternative two step approach which identifies the first stage as being the likelihood of the incidence of innovation followed by a second stage for innovators consisting of product and/or process innovation.…”

Section: Conceptual Frameworkmentioning

confidence: 99%

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A two-stage examination of business innovation decision-making: evidence from Ireland

Bourke

Jordan

2015

IJBIR

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Access to the full text of the published version may require a subscription. Abstract: This paper sheds light on how businesses make decisions regarding product and process innovation by comparing the power of one-stage and two-stage models to explain business-level innovation decision-making. The first, a one-stage model, represents the business as making a one-off choice between four discrete alternatives. These are not to innovate, to product innovate only, to process innovate only or to both product and process innovate. The second model, a two-stage model, represents the business as making an initial decision on whether or not to innovate. This approach facilitates analysis of business innovation as simultaneous and sequential processes and identification of the model which best explains innovation decision-making. The paper uses original business-level survey data from over 400 small and medium-sized enterprises in Ireland. The results suggest that a two-stage model of the innovation decision has a statistically significant advantage in predicting the innovation output, indicating that there is a need to incorporate the incidence and type of innovation into future empirical studies utilising a knowledge production function. The results suggest that the use of a two-stage model provides a better understanding of the impact of different knowledge sources on different types of innovation. However, the paper also discusses whether the two-stage model is a useful way of understanding how businesses make decisions on innovation in practice. Rights

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Conceptual Frameworkmentioning

confidence: 99%

Section: Conceptual Frameworkmentioning

confidence: 99%

See 3 more Smart Citations

A two-stage examination of business innovation decision-making: evidence from Ireland

Bourke

Jordan

2015

IJBIR

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Exploring the relationships between innovation and internationalization of small and medium‐sized enterprises: A nonrecursive structural equation model

2013

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This article seeks to provide more insights on the two‐way link between internationalization and innovation by considering total, direct, and reciprocal effects using a nonrecursive structural model. Innovation is defined through product and process development, while internationalization is defined through inward and outward internationalization in both closer and farther markets. The results suggest that these two major sources of growth are linked by different sets of relations, from the investment in product and process innovation to outward internationalization in a closer market, or from inward and outward internationalization in farther markets to the investment in product innovation. Copyright © 2013 ASAC. Published by John Wiley & Sons, Ltd.

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