Title: Examining the Schumpeter hypothesis in the context of closed and open innovation: survey evidence from Norway and Sweden

Authors: Tommy Hoyvarde Clausen

Addresses: Nordland Research Institute, N-8027 Bodo, Norway

Abstract: In this paper, we examine the relevance of the Schumpeter hypothesis in the context of open and closed innovation. The Schumpeter hypothesis states that larger firms are more innovative than smaller firms. Our findings suggest that there is a tight link between larger firm size, internal R&D and turnover from incremental innovation among incumbent older firms in the context of closed innovation. In the closed context, we find rather strong empirical support for a traditional interpretation of the Schumpeter hypothesis. In the open innovation context, we find much stronger links between start-up firms, external R&D and radical innovation. Here we find empirical support for a more evolutionary interpretation of the Schumpeter hypothesis highlighting also start-up firms as a source of innovation.

Keywords: open innovation; closed innovation; Schumpeter hypothesis; internal R&D; external R&D; community innovation; surveys; Norway; Sweden; research and development; firm size; turnover; incremental innovation; incumbent firms; older firms; start-up firms; radical innovation; small and medium-sized enterprises; SMEs; entrepreneurs; entrepreneurship.

DOI: 10.1504/IJESB.2011.038534

International Journal of Entrepreneurship and Small Business, 2011 Vol.12 No.2, pp.158 - 172

Available online: 10 Feb 2011 *

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