Innovation modes and productivity in the UK

Lambert, Ray and Frenz, Marion (2008) Innovation modes and productivity in the UK. Department for Innovation, Universities and Skills. ISBN 9781844789986.

Abstract

This paper is motivated by the aim to develop appropriate indicators capturing modes of innovation by UK enterprises, examine how such innovation practices vary across regions and industries and explore the extent to which they have an impact on productivity. There is an emphasis on identifying and examining the relevance of non-technological innovation that builds on and extends previous research in this important area. Traditionally, measures of innovation have rested on single indicators such as patenting or R&D, supplemented, by product and process and process innovation outputs. More recently innovations in management, organisational and marketing areas are being brought into the picture and the relevant information collected by innovation surveys. Among indicators of innovation the distinctions between technological and non-technological innovations has often been loosely translated into either activities in manufacturing versus services, or into product and process innovations versus organisational and marketing innovations. While these simplifications of technological and non-technological innovation can be a practically useful, since data is readily available, they do not fully recognize that mixed modes of innovations are adopted by today’s firms; firms whose environments are characterised by increased competition, internationalisation and shorter product life cycles.

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