Innovation patterns in manufacturing and services: sectoral-determinism or strategic-choice?

Abstract

This paper presents the results from a multivariate (factor and cluster) analysis of the variation in innovation processes of manufacturing and service firms. Using data from the third Community Innovation Survey for Flanders (Belgium), a set of seven clusters of firms that are to be interpreted as ‘innovation patterns’ or ‘innovation strategies’ is identified. Two major findings emerge: (i) the ‘sectoral determinism’ of innovation does not hold true for Flemish firms, since multiple innovation strategies seem to co-exist within the same industry; (ii) firms in the service industry seem to form a separate, ‘low-profile’ innovation cluster. The latter finding may, however, raise some issues about the ‘technological bias’ of CIS-3. In conclusion, we point to some important implications for the design of adequate innovation-policy measures.