“Identifying complementary relationship between different types of innovation in certain European countries after the crisis: Evidence from CIS 2012”

Abstract

The main focus of this paper is to explore the relationship between four types of innovation: new to market innovation (product innovation), new to firm innovation (product innovation), process and organizational innovation. This paper is among the first to investigate simultaneously the complementarities between technological (product and process innovation) and organizational (process or product and organization) innovations on cross-sectional samples for two group of countries: Central and Eastern Europe (Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Romania, Slovakia and Slovenia) and Western European countries (Germany, Spain, Norway and Portugal) The paper employs the methodology developed in Athey and Stern (1998) and utilized in Mohnen and Roller (2005) and Doran (2012) in order to estimate the relationship between different types of innovation in the productivity of a firm. The data is derived from the Community Innovation Survey - CIS2012. The results for the CEE group of countries have shown that for the companies operating on that market we cannot confirm any kind of complementarity among the different types of innovation analyzed. As for the situation of the companies operating on the Western European market we found complementary relationship among organizational and process innovation, but not for organizational and product innovation (new to market and new to firm innovation)