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-bydoing, by-using and by-interacting -DUI- (e.g. teamwork, collaboration with suppliers). 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 and inquire the peculiar innovation modes adopted by these firms as we expect SMEs to be less homogeneous than typically expected. Here, 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 drivers. Complementarily, we investigate the impact of these drivers on innovation output across these 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.