Sources and determinants of intra-industry heterogeneity in the innovation process

Yurtseven, Alp Eren
This thesis aims to explore the sources of intra – industry heterogeneity of innovation modes and the effects of such heterogeneity on the innovation process. A taxonomy of innovative firms was constructed and different modes of innovation were explored for this purpose, then micro and macro level determinants of intra – industry heterogeneity were analyzed. The linkage between firm’s innovative characteristics and its resource position, knowledge base and relationships with other organizations was established. Finally the effects of intra – industry heterogeneity on the innovation process were investigated using a modified version of the Crépon – Duguet – Mairesse model. Analysis results indicate that there are groups of firms within the same sector that display distinct innovation characteristics and firm’s resource position, knowledge base and cooperation behavior have a bearing on the innovative characteristics of firms. Furthermore, it was found that variables related to variety generation within a sector increase heterogeneity; whereas increasing average firm size or concentration of firms that belong to a group reduces the amount of heterogeneity in that sector. Research findings indicate that firms operating in more diverse sectors (in terms of innovative behavior) spend more on innovation and introduce product innovations more efficiently. Research based evidence from this thesis show that sectors are populated with firms that have distinct innovative characteristics. Therefore, sectoral innovation policies should target specific groups, rather than emphasizing innovation typologies based on vague abstractions. Moreover heterogeneity of innovative behavior can be regarded as a risk – mitigation tool to control the adverse effects of path dependency and lock – in.


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Citation Formats
A. E. Yurtseven, “Sources and determinants of intra-industry heterogeneity in the innovation process,” Ph.D. - Doctoral Program, Middle East Technical University, 2015.