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Modelling the innovation value chain

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Roper, Stephen, Du, Jun and Love, James H. (2008) Modelling the innovation value chain. Research Policy, Volume 37 (Numbers 6-7). pp. 961-977. doi:10.1016/j.respol.2008.04.005 ISSN 0048-7333.

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Official URL: http://dx.doi.org/10.1016/j.respol.2008.04.005

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Abstract

Innovation events - the introduction of new products or processes - represent the end of a process of knowledge sourcing and transformation. They also represent the beginning of a process of exploitation which may result in an improvement in the performance of the innovating business. This recursive process of knowledge sourcing, transformation and exploitation comprises the innovation value chain. Modelling the innovation value chain for a large group of manufacturing firms in Ireland and Northern Ireland highlights the drivers of innovation, productivity and firm growth. In terms of knowledge sourcing, we find strong complementarity between horizontal, forwards, backwards, public and internal knowledge sourcing activities. Each of these forms of knowledge sourcing also makes a positive contribution to innovation in both products and processes although public knowledge sources have only an indirect effect on innovation outputs. In the exploitation phase, innovation in both products and processes contribute positively to company growth, with product innovation having a short-term 'disruption' effect on labour productivity. Modelling the complete innovation value chain highlights the structure and complexity of the process of translating knowledge into business value and emphasises the role of skills, capital investment and firms' other resources in the value creation process. (C) 2008 Elsevier B.V. All rights reserved.

Item Type: Journal Article
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HD Industries. Land use. Labor
Divisions: Faculty of Social Sciences > Warwick Business School > Centre for Small & Medium-Sized Enterprises
Faculty of Social Sciences > Warwick Business School > Entrepreneurship, Innovation & Management
Faculty of Social Sciences > Warwick Business School > Strategy & International Business
Faculty of Social Sciences > Warwick Business School
Library of Congress Subject Headings (LCSH): Production (Economic theory) -- Mathematical models, Business logistics, Corporations -- Growth -- Ireland
Journal or Publication Title: Research Policy
Publisher: Elsevier BV
ISSN: 0048-7333
Official Date: July 2008
Dates:
DateEvent
July 2008Published
Volume: Volume 37
Number: Numbers 6-7
Number of Pages: 17
Page Range: pp. 961-977
DOI: 10.1016/j.respol.2008.04.005
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access
Funder: Economic and Social Research Council (Great Britain) (ESRC)
Grant number: RES-000-22-0729 (ESRC)

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