Title: Assessing innovative behaviour of firms: an attempt to reveal path dependency effects

Authors: Kadri Ukrainski, Jaan Masso, Urmas Varblane, Elias G. Carayannis

Addresses: Faculty of Economics and Business Administration, University of Tartu, 4-A211 Narva Rd, Tartu, 51009, Estonia. ' Faculty of Economics and Business Administration, University of Tartu, 4-A211 Narva Rd, Tartu, 51009, Estonia. ' Faculty of Economics and Business Administration, University of Tartu, 4-A211 Narva Rd, Tartu, 51009, Estonia. ' Department of Information Systems and Technology Management, School of Business, European Union Research Centre (EURC), Global and Entrepreneurial Finance Research Institute (GEFRI), George Washington University, Washington, DC 20052, USA

Abstract: The article is targeted to explain similarities and differences in innovative behaviour of Estonian industries by their previous development or path dependency matters. Path dependency of industries expressed by their dynamic capabilities is causing different upgrading strategies involving various types of innovative behaviour. The analysis of innovative behaviour is based on the data from the Estonian Community Innovation Survey covering the years 2002-2004. Indicators of innovation behaviour were divided into three groups – input, process and outcome indicators. With the help of factor analysis the whole set of innovation indicators was compressed into eight synthetic factors. Dynamic aspects of path dependency were assessed by the level and growth of value added per employee and the industries were grouped according to this indicator into four groups. Based on factor analysis, synthetic factors reflecting innovation inputs, process and outcomes were created and analysed across industry groups.

Keywords: innovation; path dependency; dynamic capabilities; factor analysis; innovative behaviour; Estonia; value added.

DOI: 10.1504/IJIRD.2011.040527

International Journal of Innovation and Regional Development, 2011 Vol.3 No.3/4, pp.273 - 304

Published online: 29 Nov 2014 *

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