Factors affecting innovation revisited

1 Fac o s a ec ing inno a ion e isi ed José Mole o y An onio Ga cía WP05/08 2 3 Resumen El p opósi o de es e abajo es con ibui a un mejo conocimien o de los ac o es que a ec- an a la inno ación median e el análisis de los mic oda os de la encues a de inno ación de las emp esas españolas de 2003. El es udio se abo da desde la elabo ación de una axono- mía de sec o es combinando las Ven ajas Tecnológicas Re eladas de la indus ia española con el dinamismo ecnológico mundial; además se in oduce una clasi icación de las em- p esas en unción de la pe enencia o no a un g upo de emp esas y de si esos g upos son de nacionalidad española o ex anje a. Se u ilizan écnicas de Análisis Fac o ial pa a educi y o ganiza la abundan e in o mación disponible en Fac o es con signi icado económico que después son empleados como a ia- bles explica i as de la inno ación de p oduc o y de p oceso. Se encuen an di e encias en e ambos ipos de inno ación an o po el núme o de ac o es signi ica i os como en la in ensidad de su capacidad explica i a. La axonomía elabo ada mues a su impo ancia al mos a pa ones de compo amien o dis in os en e los cua o ipos de casos cons uidos. Abs ac The aim o his pape is o con ibu e o a be e unde s anding o ac o s a ec ing inno a- ion by analysing he Spanish manu ac u ing sec o using mic oda a o he 2003 Spanish Inno a ion Su ey. To en ich he analysis a sel de eloped sec o al axonomy is used com- ing om he combina ion o bo h o he sec o al Re ealed Technological Ad an ages (RTA) and wo ldwide echnological dynamism o he sec o s; mo eo e i ms a e classi ied acco ding o he ype o capi al owne ship: independen companies, companies belonging o a na ional g oup and subsidia ies o mul ina ional en e p ises. The abundance and he - e ogenei y o a iables ad ised us o use Fac o analysis o educe and o ganise he o iginal a iables in o a numbe o consis en and heo e ically signi ican ac o s. We ound di e - ences be ween p oduc and p ocess inno a ion, bo h in numbe o explica i e a iables (signi ican independen a iables) and in ela i e e ec o independen a iables (e en, in some cases, a sign change om p oduc o p ocess inno a ion). Taxonomy ma e s be- cause o some di e ences in explana o y (independen ) a iables o each sec o and model explana o y powe di e ences be ween sec o s, and, on he o he hand, because o he “non signi icance” o some signi ican a iables once we con ol by sec o al axonomy. Key wo ds: Inno a ion, Fac o s a ec ing inno a ion, Mul ina ional en e p ises, Sec o al axonomies, Spain. José Mole o, An onio Ga cía Ins i u o Complu ense de Es udios In e nacionales, Uni e sidad Complu ense de Mad id. Campus de Somo- saguas, Finca Mas Fe e. 28223, Pozuelo de Ala cón, Mad id, Spain. Facul ad de Ciencias Económicas y Emp esa iales. Uni e sidad de Se illa. A da Ramon y Cajal, 1. 41018, Se illa, Spain. © José Mole o, An onio Ga cía ISBN: Depósi o legal: El ICEI no compa e necesa iamen e las opiniones exp esadas en es e abajo, que son de exclusi a esponsabilidad de sus au o es. 4 5 Índice 1. In oduc ion…………………………………………………………………………….……..7 2. Theo e ical backg ound……………………………………………………………………….8 3. Me hodology and da a analysis………………………………………………...………...…..11 4. Some s ylised ac s o he inno a ion in he Spanish economy………………………….….13 5. Resul s…………………………………………………………………………………………15 5.1 Fac o analysis ..…………………………………….………………………………..15 5.2 Reg ession analysis………...…………………………………………………….…..16 6. Concluding ema ks…………………………………………………………………….……19 7. Annexe A……………………………………………………………………………………...21 Annexe B………………………………………………………………………………………22 8. Re e ences……………………………………………………………………………………..26 6 7 1. In oducción Inno a ion has expe ienced a ema kable change in ecen yea s as a consequence o a numbe o ac o s including he ad ance o science and echnology and he inc easing globalisa ion o a numbe o ma ke s and ac- i i ies. The g owing he e ogenei y o sou ces a ec ing he p ocess o i ms’ inno a ion has led o he knowledge c ea ed ou o he com- panies hemsel es achie ing g ea e im- po ance, and he e o e o he cen al ole o be played by he capaci y o in eg a ing inne and ou e sou ces o echnological capabili ies wi h o he compe i i e o ces. Simila ly, he accele a ion o in e na ionalisa ion a mos economic and social le els has inc eased he necessi y o exploi ing i ms’ ad an ages a in e na ional (some imes wo ld) le el and seeking new compe i i e ( echnological) asse s in a mul ina ional amewo k. Mo eo e , he specialised esea ch has eached a common conclusion ha sec o al ea u es ha e a e- ma kable in luence on he possibili ies and o ganisa ional modes o inno a o y ac i i y. F om Pa i ’s seminal sec o al axonomy on inno a ion, he e is a long adi ion o using se e al axonomies o “classi ica o y lis ” o p oduc i e sec o s acco ding o hei in- no a i e cha ac e is ic o in ensi y. Bo h a- cademic and ins i u ional axonomies can be desc ibed as “closed ap io is ic lis s” o sec- o s, buil on igo ous s udies bu wi hou lexibili y o allow coun y di e ences on sec- o cha ac e is ics. A main con ibu ion o his pape consis s o g ouping companies in di - e en ca ego ies o sec o s in a non-ap io is ic way: each sec o is “sel -classi ied” in a speci ic ype and no in any o he acco ding o pa - icula cha ac e is ics and “inno a i e be- ha iou ” in a gi en coun y (in ou case, Spain). To his end we ha e de eloped a a- xonomy om he combina ion o (RTA1) o each sec o o ac i i y and he e olu ion o i s wo ld weigh be ween 1993-1998 and 1999- 2003. O iginal sec o al da a come om pa en s g an ed by he USPTO by p io i y yea a he na ional le el by sec o o economic ac i i y (NACE class de i ed h ough conco dance wi h In e na ional Pa en Classi ica ion). 1 RTAs o a sec o o a coun y is calcula ed as ollows: RTAij = (Pij / Pwj )/ (PTi / PTw) whe e i is he coun y, j he sec o , w he wo ld o al o j sec o , T is he o al o he coun y and w is he absolu e wo ld o al. All e e ed o pa en s in a pe iod o ime. Using mic oda a om he Spanish Inno a ion Su ey2, we had he ad an age o hei quali y and s a is ical signi icance. These da a a e o a g ea s a is ical alidi y inso a as an expe g oup coo dina ed by he Spanish Na ional S a is ics Ins i u e has, on he one hand, d awn up a pe manen sample o i ms wi h he in- en ion o c ea ing a s able panel o da a and, on he o he , has con olled he s a is ical sig- ni icance o he anonymous da a is-à- is he o iginal mic o da a. In addi ion, his in o ma- ion allows us o sepa a e i ms acco ding o hei independen ea u e o belonging o a g oup, including he coun y o o igin o he mo he house o MNCs. Ou opic o explain is he inno a i e ac i i y (p oduc and p ocess inno a ion) o Spanish manu ac u ing i ms (bo h na ional and mul- ina ional owne ship), using as explana o y a iables hose included in he Inno a ion Su ey. The abundance and he e ogenei y o a iables ad ised us o use Fac o analysis o educe and o ganise he numbe o o iginal a iables in a numbe o consis en and heo- e ically signi ican ac o s. We ha e made a se ies o sec o al analyses in an i e a i e way using bo h PITEC o iginal a iables and i s ans o ma ions. Non-included a iables ha e been ejec ed on he basis o KMO and MSA alues. Once ele an ac o s a e e ained, we ha e made wo se ies o logis ics eg essions o bo h p ocess and p oduc inno a ion im- plemen a ion, wi h ac o s and i ms owne - ship as independen a iables. In each se ies, i s ly we eg ess once o he whole sample and secondly we eg ess ou imes mo e con- olling by sec o al axonomy. In he nex sec ion, we p esen he main heo- e ical backg ound, in he hi d sec ion we discuss ou da a and me hodological guide- lines, in he ou h sec ion we p esen some s ylised ac s o inno a ion ac i i ies in Spain o a be e unde s anding o he con ex in which ou empi ical wo k is done, in he i h sec ion we show he empi ical esul s and i- nally in he six h sec ion we enhance he main conclusion 2 I is called he PITEC panel (Panel de Inno acion Tec- nologica). See: www. echnociencia.es. Due o he manipula ion o he o iginal su ey da a, he in o ma ion o his panel canno be compa ed in absolu e e ms wi h da a di ec ly de i ed om he inno a ion su ey used in he o me sec ion. 8 2. Theo e ical backg ound I is no ou in en ion o de elop a comple e heo y o ac o s a ec ing inno a ion. Fi s o all his is because such a heo y is no a ail- able, as demons a ed by bo h he a emp s o ga he he mos ele an empi ical in es iga- ions (Tidd, Bessan and Pa i , 1997), and he lis o issues included in seminal books as “is- sues a ec ing inno a ion” (Ro hwell and Dodgson, 1995; Fage be e al, 2006). On he con a y, ou aim is o b ie ly e iew he mos signi ican con ibu ions o ind some heo e i- cal guidelines o ou empi ical esea ch. In his ega d, o b ie ly summa ise he pano ama o heo e ical isions o he condi ions which p omo e success ul inno a i e ac i i ies o i ms, we can clus e hem oge he in wo undamen al g oups. On he one hand a e hose belonging o he long adi ion o in- dus ial o ganisa ion heo y which basically sea ch o a ew de e mining ac o s o he capaci y o inno a ion and, on he o he , hose mo e ep esen a i e o he ela i ely ecen app oach o he e olu iona y heo y which is based on he analysis o a ie y and di e si y o inno a i e modes and equen ly uses he classi ica ion o cases as a basic heo e ical ool. S a ing om he adi ion o indus ial o gani- sa ion s udies, one mus emembe hei cen- al me hodological cha ac e is ics consis ing o he combina ion o he h ee classical s eps o s uc u e-conduc -pe o mance (Sche e and Ross, 1990). As o me ly o o he e- conomic issues, he analy ical wo k is o ien ed o inding ou one o a ew ac o s (ne e a la ge numbe ) which can explain he in- no a o y ac i i y o he i ms in a sa is ac o y way3. Wi hou a doub hese wo a e he mos equen ly esea ched elemen s: he size o he i m and he concen a ion le el o he ma ke s in which i ms ca y ou hei inno a i e ac- i i ies. In spi e o he huge numbe o s udies made abou bo h o heses issues, he cu en si ua- ion is ha he e a e no conclusi e esul s al- lowing us o asse he sign and in ensi y o he impac hose ac o s ha e o induce in- no a ion. In ac , as a as he size o he i m is conce ned, we can sha e he a gumen o 3 O senigo (1989) sugges s hey use a dicho omous pe spec i e: la ge e sus small size, concen a ed e sus non-concen a ed ma ke s, e c. Cohen (1995) calls hem s udies in he Schum- pe e ian adi ion. F eeman and Soe e (1997, page 193) ha he size “ce ainly in luences wha kind o p ojec s can be a emp ed in e ms o echnology, com- plexi y and cos s bu does no in i sel de- e mine he ou come”. This inconclusi e conclusion is he esul o a la ge amoun o empi ical esea ch ela ing o he size o he i ms and inno a i e ac i i ies o he i ms. Pe haps he mos classic one is he associa ion o size wi h R&D expendi u e. In his case, he a ailable esea ch shows he e is a concen a ion o R&D expendi u e in la ge companies, basically de e mined by he size o R&D p og ammes ins ead o he size o he i m (F eeman and Soe e, 1997). Ne e heless, i is mo e di icul o ind a clea associa ion be ween he inc ease o he size and he in en- si y o R&D expendi u e. In ac , mainly a e con olling by sec o , he associa ion seems o ollow a g owing end ( he la ge he size he mo e in ense is R&D e o ) bu jus o a ce - ain ex en ; om his poin onwa d he do- minan ela ion is a p opo ional one (Cohen, 1995). Wi h ega d o small i ms, he e i- dence poin s o a wo old si ua ion: whe eas a as majo i y o small i ms do no pe o m any specialised R&D p og amme, in se e al coun ies hose small i ms ha do pe o m R&D ha e abo e a e age R&D in ensi ies (F eeman and Soe e, 1997, p. 232). The si ua ion is e en less clea i inno a ion eplaces R&D ac i i ies; mo e quali ica ions ha e o be inco po a ed, such as, o example, he possible ad an age o small companies in ea ly s ages o inno a i e wo k and he less expensi e bu mo e adical inno a ion, whe eas la ge i ms ha e ad an ages in he la e s ages and imp o emen and scaling up o ea ly b eak h oughs (F eeman and Soe e, 1997, 234). Mo e gene ally, Ro hwell and Dodgson (1995, 323) a i e a he ollowing conclusions: I. Inno a o y ad an age is unequi ocally associa ed nei he wi h la ge no small companies. Small i m ad an ages a e mainly beha iou al while hose o la ge i ms a e mainly ma e ial. II. A ailable da a sugges s ha he i m size/inno a ion sha e ela ionship is U- shaped. III. Small i ms´ inno a o y con ibu ion a- ies signi ican ly om sec o o sec o . 9 IV. Small and la ge i ms do no ope a e in isola ion om each o he and hey enjoy a a ie y o complemen a y ela ionships in hei echnological ac i i ies”. V. Any s udy o he oles o small and la ge i ms in inno a ion should be dynamic: hei ela i e oles a y conside ably o e he indus y cycle (Shephe d, 1991; U e back, 1994). The si ua ion is mo e con using i he aim is o associa e le els o concen a ion (o monopo- lis ic powe ) wi h a supe io inno a i e pe - o mance. The eason is ha he e a e wo di e en angles o app oach ha ela ionship: one is he passi e and di ec associa ion o highe le els o concen a ion wi h mo e in- ensi e beha iou and he second he mo e dynamic and complex one ha pos ula es he need o a monopolis ic ewa d o encou age inno a i e ac i i ies (O senigo, 1989; Cohen, 1995). In he i s case no s ong conclusi e esul can be shown and he second is e y di icul o es ; he e o e, some idea o a si- mul aneous de e mina ion o concen a ion and inno a ion can be p oposed (Cohen, 1995). To comple e ha une en pe spec i e we can conclude ha o gene alise abou size o he i ms, scale o R&D, in en i e ou pu and in- no a ion needs o be hea ily quali ied. In- dus y, echnology and his o y ma e 4 (F ee- man, 1982; F eeman and Soe e, 1997). The e a e no many o he ea u es so deeply in es i- ga ed. In gene al, p og ess has been poo in opics such as he in luence o cash lows o di e si ica ion (Cohen, 1995). Ne e heless, i is impo an o highligh he impo ance gi en o some o ganisa ional cha ac e is ics in he seminal SAPPHO p ojec (Ro hwell e al, 1974) and he enaissance o hose elemen s in he li e a u e and policy p ac ices (Nel- son&Sampa , 2001; Nelson, 2008; OECD, 2005). Following a me hodology o compa ing suc- cess and ailu e o inno a ion, he SAPPHO p ojec spo ligh ed a numbe o o ganisa ional a iables, mainly “ma ke ing ela ed”, “ex e - nal communica ion” and “ i m managemen ”. 4 I is impo an o emembe a numbe o empi ical limi s which se iously make i di icul o a i e a gene al conclusions. Acco ding o Cohen (1995), we can men ion he ac ha sam- ples a e mos ly no andom, in many cases he e a e o he i ms a iables ou o con ol and he mul isec o al cha ac e o mos la ge i ms. F eeman cle e ly summa ised i by saying: “ he ac ha he measu es which disc imi- na ed be ween success and ailu e include some which e lec ed mainly on he compe- ence on R&D, o he s which e lec ed mainly on e icien ma ke ing and some which meas- u ed cha ac e is ics o he business inno a o wi h good communica ions, con i ms ha iew o indus ial inno a ion as essen ially a coupling p ocess” (F eeman, 1982, 125). The o me no wi hs anding, he inno a ion heo y eo ien ed he app oach o in es iga e he ole o he i ms. P ecisely he ci ed book o F eeman, oge he wi h seminal wo ks such as Rosenbe g 1976, Nelson and Win e , 1982, Dosi, 1984 and Pa i , 1984 made claims o a be e unde s anding o echnology and inno- a ion ha enables o c ea e a mo e accu a e heo e ical app oach. Apa om o he gene al conside a ions (O senigo, 1979; Dosi, 1984) as a as his pape is conce ned, he cen al change has o do wi h he in oduc ion o a i- e y and di e si y as opposed o he main s eam pe spec i e o gene al de e minan s o i ms’ inno a ion; u he mo e, he no ion o “lea ning” occupied a cen al posi ion as a consequence o conside ing echnology and inno a ion as speci ic kinds o knowledge (Pa i , 2006). As a consequence o his new o ien a ion he app oach o i ms’ inno a o y beha iou in- co po a es a numbe o ema kable modi y- ca ions. Fou o hem a e pa icula ly sig- ni ican o he objec i es o his in es iga ion: he ole o sys ems o inno a ion, he im- po ance o non- echnological inno a ion, he ele ance o he sec o o ac i i y and he in- oduc ion o axonomies o map he he e o- genei y o conduc s. The concep o sys ems o inno a ion (F ee- man, 1987; Lund all, 1992) basically ein- o ced he idea o sys emic in e ac ion among i ms and a la ge amoun o ins i u ions. Thus, in he con ex o his pape , he ele an issue is he necessi y o inco po a ing in e nally and ex e nally sou ces o knowledge o he i m, ei he on a collabo a i e mode o h ough ma ke mechanisms. In o he wo ds, he i- sola ed conside a ion o i ms´ cha ac e is ics is no enough o ully unde s and he inno a- i e p ac ice o en e p ises (Ro hwell, 1995; Tidd, Bessan and Pa i , 1997); hence a- iables measu ing such an in e ac ion mus be inco po a ed. 16 2 ac o s be ween 9.5% and 10.5%; le el II, 3 o 2 ac o s be ween 7% and 8.5%; le el III, 3 ac o s be ween 5.5% and 6,5%; le el IV, 2 ac o s a ound 4,5%). The mo e solid Fac o s uc u es a e: • NESTR, NGEST, NORG, NMARK, NESTE, always in he i s le el and usually he i s ac o . • GMAQUI, GTECNO, GPREP, usually in he second le el, we ind a endency o inco po a e GFORM also. • PATNUM, FPRO, usually in he se- cond le el. GINTID has a endency o link his ac o . • INNOVEM, INNPROD, some imes in he second le el, o he s in he hi d. • PIDTEJpw, FAP, some imes in he second le el, o he s in he hi d. • TAMMED, GEXTID, GMARKET, u- sually in he hi d le el. • INNNOVET, INNPROC, always in he las le el. • INNOVEC, INFUN, always in he las le el oo. Ou selec ed Fac o s uc u e is shown in Ta- ble 1 and i s qui e easonable possibili y o being in e p e ed in economic and inno a i e e ms mus be unde lined; each ac o is ac- companied by he a iables ha clus e o- ge he and he name we ha e assigned o make explici i s economic o inno a i e signi i- cance. TABLE 1: ex ac ed ac o s. EXPLAINED VAR (%) Fac o DESCRIPTION Each ac o Accumula ed 1 O ganiza ional Inno a ion (ORGINNV) 10.53 10.53 2 Non-R&D inno a i e expendi u es (NRDEXPEND) 10.42 20.95 3 Own R&D and esul s (RD&PAT) 7.5 28.45 4 P oduc inno a ion on inne e o (PRODINNER) 7.15 35.6 5 Human esou ces and Public unds (HUMCAP&FUNDS) 6.15 41.75 6 Size and ex e nal knowledge in eg a ion (SIZE&INTEGRATION) 6.05 47.8 7 EU unds a ac ion (UEFUNDS) 5.81 53.61 8 Basic esea ch and coope a ion (BASICR&COOP) 4.82 58.43 9 P ocess inno a ion on ex e nal sou ces (PROCEXTER) 4.81 63.24 Sou ce: Own elabo a ion om PITEC; p incipal componen s me hod. 5.2 Reg ession analysis. This phase o he analysis has been done h ough he es ima ion o eg ession models using he o me ac o s as independen a- iables o explain he inno a i e ac i i y o he i ms. Following he esea ch pa h p oposed, we ha e es ima ed a numbe o logis ic e- g essions wi h se e al cha ac e is ics: • We ha e sepa a ed p oduc and p o- cess inno a ion on he unde s anding ha he e can be signi ican di e ences be ween hem. In bo h cases models y o explain he p obabili y o any i m belonging o he inno a i e g oup o no . • Apa om he ac o s we ha e in- cluded as independen a iables wo dummies ying o con ol he ix e- ec o i ms belonging o any o he h ee g oups in which we ha e di ided he sample: independen Spanish com- panies (EIN), i ms belonging o a na- ional g oup (GN), and i ms be- longing o o eign mul ina ional g oups (GMN). The idea is o conside he impo ance o he g owing in e na- 17 ionalisa ion o he inno a ion in he Spain. • In addi ion o he gene al eg essions o p oduc s and p ocesses we ha e es- ima ed in each case ou o he eg e - ssions co esponding o he ypes o sec o s o me ly explained. The esul s a e shown in ables 2 and 3 om which we can deduce as he main indings he ollowing. TABLE 2: Logi coe icien s o “innp od” (p oduc inno a ion) Va iable GLOBAL DYNAMIC STATIC LOST OPP. RETREAT ein .226** gmn basic _coop .209*** .241*** .182* humcap_ unds .981*** .977** .526*** 1.29*** n dexpend .406** -5.26*** .804** -6.13*** o ginn .424*** .435*** .402*** .439*** .393*** d_pa .449*** 1.57*** .65*** Size_in eg .238** 2.06*** .324*** .146* 2.12*** ue unds .195** .46*** .437* cons an .677*** 1.22*** .618*** .915*** .582*** N 3691 805 1362 1086 438 ll -2213 -427 -852 -634 -250 ll_0 -2395 -500 -900 -695 -294 chi2 363 144 96.1 123 87 2_p .0758 .144 .0534 .0881 .148 aic 4445 869 1713 1284 509 bic 4500 902 1739 1324 525 legend: * p<0.05; ** p<0.01; *** p<0.001 Sou ce: Own elabo a ion om PITEC da a. TABLE 3: Logi coe icien s o “innp oc” (p ocess inno a ion) Va iable GLOBAL DYNAMIC STATIC LOST OPP. RETREAT ein .383*** .666*** gmn basic _coop .886*** .973*** 1.12*** .971*** .768*** humcap_ unds -.471*** -3.76*** -.969*** -.436*** -3.12*** N dexpend .499*** -8.55*** -1.06*** .886*** -10.6*** o ginn .597*** .475*** .65*** .532*** .43*** d_pa .128* -1.75*** -.297** .291** Size_in eg .502** Ue unds 1.89*** 1.87*** 1.09*** cons an -.213*** -.803*** -.196* -.0482 -.455*** N 3691 805 1362 1086 438 Ll -2033 -390 -726 -598 -225 ll_0 -2552 -551 -944 -752 -297 chi2 1037 322 436 309 145 2_p .203 .292 .231 .205 .244 aic 4083 791 1470 1210 459 bic 4132 820 1517 1245 480 legend: * p<0.05; ** p<0.01; *** p<0.001 Sou ce: Own-elabo a ion om PITEC da a. 18 GENERAL FINDINGS. 1. Gene ally speaking we ob ain a be e explana ion o p ocess han o p oduc inno a ion. I is e lec ed in he highe pseudo R2 alues and in he highe homogenei y ound ac oss ypes o sec o s. Ne e heless, signi- ican ac o s a e a he simila , al- hough size & in eg a ion is mo e impo an in p oduc inno a ion. F om a mo e specula i e poin o iew we ask i hose di e ences a e a e lec ion o he Spanish inno a ion cha ac e ised, among o he elemen s, by a lesse p esence o adical and s a egic inno a ions and a hea ie weigh o adop ions and by a lesse dependence on o eign inpu s in p ocess echnologies (Buesa& Mole o, 1992; Mole o, 2007). 2. The associa ion be ween human ca- pi al (pe sonnel) and he access o public unds changes i s signs: posi- i e o p oduc inno a ion and nega- i e o p ocess. All he emaining ac o s main ain he same sign in bo h cases. 3. The kind o sec o eme ges as much mo e impo an han he ype o i ms´ owne ship, con i ming wha was expec ed. Once we con ol o he i s , we only ind a case in which he ype o i m is ele an : ICs in p ocess inno a ion o S a iona y Spe- cialisa ion sec o s. Impo an ly enough i mus be said ha his g oup ga he s a non negligible num- be o so called adi ional indus ies in which independen companies a e s ill he bulk o he ac i i y. 4. O ganiza ional inno a ion a ises as he mos impo an ac o explaining he beha iou o inno a i e i ms. I s uni e sal p esence in bo h ypes o inno a ion and in all kinds o sec o s, always wi h a posi i e sign, allows us o asse ha his new e idence con- i ms and ein o ces wha heo y and p e ious s udies p edic ed. 5. A e con olling o ype o sec o , a numbe o di e ences can be ound. I is so bo h o he explana o y ca- paci y o he models and o conc e e ac o s which a e signi ican in some cases bu no in o he s (some imes changing he sign). In ou opinion his con i ms and jus i ies he e- le ance o he axonomy used. Mo e- o e he le el o adjus men a ies signi ican ly be ween he sec o s be- e adap ed o he in e na ional dy- namism (Dynamic Specialisa ion and Re ea ) and he o he wo mo e im- balanced sec o s (Los Oppo uni ies and S a iona y Specialisa ion). PRODUCT INNOVATION 1. The ype o i m is no signi ican in any o he cases. Howe e he size & in eg a ion ac o has a a ou able e ec in all cases. 2. Expendi u es on non R&D in- no a i e ac i i ies ha e a posi i e impac in Los Oppo uni ies, ne- ga i e in Dynamic Specialisa ion and Re ea and a e non- signi ican in S a iona y Specialisa ion. This poin s ou o a g ea e necessi y o p ope R&D ac i i ies in mo e dy- namic sec o s o ollow he wo ld e olu ion whe eas in dynamic sec- o s in which Spain has echnologi- cal disad an ages, non R&D ac i i- ies can be conside ed as an al e - na i e o build some capaci ies o be comple ed a e wa ds h ough R&D. 3. The al eady men ioned ole o o - ganisa ional inno a ion shows a highe e ec in he wo sec o s wi h weake adap a ion o he wo ld dy- namic: S a iona y Specialisa ion and Los Oppo uni ies. In o he wo ds, i is o hose sec o s ha his non echnological inno a ion seems o play i s mos impo an ole. 4. The join e ec o R&D expendi u e and Pa en s is a ac o which po- si i ely in luences p oduc in- no a ion in in e na ionally dynamic sec o s, ega dless o ha ing ech- nological ad an ages o disad an- ages. Tha is o say, in ma u e sec- o s he echnological e o mea- su ed h ough R&D and pa en s is no a disc imina ing ac o be ween inno a i e and non inno a i e i ms; whe eas i posi i ely dis- 19 c imina es in dynamic sec o s. In hese cases R&D and pa en s appea as a equi emen o ge echnologi- cal ad an ages. A simila commen can be made wi h ega d o UE unds; his ac o can be unde s ood as an index o inno a i e dynamism. 5. Basic esea ch and Coope a ion is only signi ican in he wo sec o s which e eal a bad in e na ional a- dap a ion: S a iona y Specialisa ion and Los Oppo uni ies. The e o e we can send a message o policy conside a ions: o s eng hen hose ac i i ies is essen ial o imp o e he si ua ion o he i ms in Los Oppo - uni ies sec o s. PROCESS INNOVATION 1. Independen companies a e mo e ac- i e in S a iona y Specialisa ion sec- o s, oge he wi h Size & In eg a- ion ac o . The weigh o adi ional sec o s wi h independen companies –some o hem o no iceable size- a- llows us o in e p e his esul as a si ua ion in which o eign companies come o “ ollow” o “adap ” he be- ha iou o na ional companies wi h ema kable echnological ad an- ages. 2. Basic Resea ch & Coope a ion is a- ou able in he ou cases, albei i s e ec is ela i ely highe in sec o s wi h bad in e na ional adjus men : Los Oppo uni ies and S a iona y Specialisa ion. This esul suppo s wha was said in he analysis o p oduc inno a ion: inancing basic esea ch and coope a i e ac i i ies posi i ely in luences inno a ion in p oduc and p ocess. 3. Non R&D inno a i e expendi u es ha e a nega i e impac in all sec o s excep in Los Oppo uni ies. Mo e- o e , he size o he e ec is much g ea e in sec o s posi i ely adap ed o in e na ional e olu ion. Again, mos dynamic sec o s a e much mo e dependen on R&D while in o he cases non R&D ac i i ies can be a p elimina y s ep o c ea e R&D capabili ies. 4. O ganisa ional inno a ion, as always, a ou s inno a ion and i s e ec is g ea e in in e na ionally dynamic sec o s, pa icula ly i i is a sec o wi h echnological disad an ages. 5. The posi i e sign o Human Capi al and Funds sugges s in p ocesses wi h mo e sys ema ic and in- c emen al inno a ion, he s abili y o human esou ces is impo an and hey seem o be s ongly connec ed wi h he a ailabili y o public unds. A complemen a y way o exploi ing he ind- ings can be made h ough he poin o iew o he kinds o sec o s o highligh some ele an egula i ies. The s a ing poin is he exis ence o mo e simila i ies be ween sec o s wi h good i ness conce ning in e na ional dynamism, on he one hand, and be ween hose badly adap ed, on he o he . As a as he i s wo a e conce ned we can poin ou ha in he Dynamic Specialisa ion ca ego y wo ac o s a e common o p oduc and p ocess inno a ion: O ganisa ional In- no a ion, wi h a posi i e impac , and non R&D expendi u es, wi h a nega i e one. An- o he wo show di e en signs in p oduc and p ocess: Human capi al and Funds and R&D and Pa en s- bo h ha e a posi i e e ec in p oduc inno a ion and a nega i e e ec in p ocess. Rega ding Re ea Sec o s, only wo ac o s a ise as common o p oduc and p ocess: The salien ac is ha O ganisa ional Inno a ion and Non R&D expendi u es a e common o bo h Dynamic and Re ea and bo h ypes o inno a ion, p oduc and p ocess. The i s has a egula posi i e in luence and he second a nega i e one. In Dynamic sec o s he ole o human capi al and unds and R&D and pa en s is also e- ma kable. The wo a e signi ican o bo h ypes o inno a ion, al hough wi h di e en signs; posi i e o p oduc and nega i e o p ocess. Coming o sec o s wi h nega i e in e na ional adjus men , i is no iceable ha he e is less egula i y han in he o me cases. The mos ou s anding a e he ollowing. Apa om he sys ema ic p esence o o - ganisa ional inno a ion, he e also a ises he 20 egula p esence o Basic Resea ch and Co- ope a ion. This, on he one hand, explains he insu icien ole played inso a as i has no been enough o gua an ee a be e in e na- ional adjus men . This is why we insis ed on he idea ha policy has o os e hose ac i i- ies in o de o upg ade he si ua ion. A second egula i y has o do wi h Human Capi al and Funds. This ac o is common o he wo sec o s and ypes on inno a ion, al- hough o he las one, he sign changes om posi i e in p oduc o nega i e in p ocess. 6. Concluding ema ks. As on many occasions, he dis ance be ween he heo e ical deba e and empi ical indings has been non-negligible in his esea ch exe - cise. In ac , he heo y abou ac o s a ec ing i ms´ inno a ion has s ill a long way o go because he analy ical objec is complex and di icul o se limi s o , as ou e iew o he li e a u e has shown. In spi e o hose di icul- ies we ha e ied o cas some ligh on he bases o he s udy o he Spanish case wi h some no iceable ea u es: i s , he impo ance gi en o he ca ego y o sec o by cons uc ing a new axonomy h ough he combina ion o sec o al echnological RTAs and he in e na- ional dynamism; second, he u ilisa ion o a e y eliable da abase, which, based on he CIS has been s a is ically imp o ed and eady o be used p epa ed by a g oup o specialis s; hi d, he combina ion o a e y la ge numbe o a iables in o de o cap u e he ichness and complexi y o he inno a o y p ocess; ou h, he inclusion o a sepa a e s udy o p oduc and p ocess inno a ion; and i h, he inco po- a ion o he ype o company by di e en ia- ing be ween na ional independen en e p ises om ei he na ional o mul ina ional g oups. The esul s ob ained allow us o make explici he ollowing ema ks: 1. Fi s o all, he me hodology has demons a ed i s use ulness because bo h he sec o al axonomy and he sepa a ion o p oduc and p ocess in- no a ion show signi ican di e ences. We should like o unde line he im- po ance o ypological analysis in he o e all heo e ical e o . 2. Pa icula ly impo an a e some ind- ings abou di e ences ac oss ca ego- ies o sec o s. I in a p elimina y ap- p oach we di e en ia e be ween he posi i e diagonal (dynamic and e- ea sec o s) and he nega i e one (los oppo uni ies and s a iona y specialisa ion), we a i e a he con- clusion ha ou es ima ions a e s onge o he posi i e one, bo h o p oduc and p ocess inno a ion. In o he wo ds, he in luence o he a iables g ouped in ac o s, allows us o asse ha he e is a be e in e- g a ion and unc ioning in he cases in which he Spanish specialisa ion coincides wi h he wo ld dynamic. 3. Simila ly, al hough less clea ly, he sepa a ion o p oduc and p ocess has shown i s use ulness. In gene al e ms he be e adjus men o he model o explaining p ocess inno a- ion is adequa e o Spanish inno a- i e specialisa ion which is mo e p ocess o ien ed. E en hough wi h he necessa y cau ion, we can e- membe he demons a ed bias o he Spanish pa e n owa ds less in en- si e and mo e adop ion based kinds o inno a ions. Fu he mo e, he ex- ao dina y impo ance o machine y and equipmen pu chases as sou ces o inno a ion o a majo i y o i ms i s well in o ou indings. 4. On he con a y, he ype o i ms ac- co ding o he dis inc ion be ween na ional and o eigne s does no shed much ligh . Ve y much in acco dance wi h p e ious wo ks (Mole o & Ga - cia, 2008), ou esul s do no ind ex- ao dina y di e ences be ween com- panies belonging o na ional o mul- ina ional g oups. Al hough a num- be o quali ica ions mus be in- oduced ega ding he o ganisa ion o inno a i e p ocess, ou s udy inds mo e simila i ies han di e ences e- ga ding he inno a o y e iciency. Thus no wi hs anding, we ind ou some di e ences o companies which a e no membe s o a g oup ( ega dless o i s na ionali y) pa icu- la ly in sec o s named as “ adi ional” o o low o medium echnological in ensi y. 5. To explain di e ences sec o al ax- onomy is clea ly mo e ele an han i m owne ship ypology. This ac 21 poin o, bo h, on he ele ance o axonomy and on he adap a i e s a- egies o MNCs. 6. Public g an s enhance p oduc in- no a ion, pe haps because hey help o sol e p oblems wi h human e- sou ces expendi u es on conc e e p ojec de elopmen . Bu , on he o he hand, hey hampe p ocess in- no a ion, e ealing weakness in hu- man esou ces expendi u e inancing while o p ocess inno a ion s abili y and empo al con inui y hey a e u - gen ly equi ed. ANNEXE A: SECTORAL CLASSIFICATION Two c i e ia ha e been combined: he posi ion o he sec o in he Spanish economy acco d- ing o i s Re ealed Technological Ad an age (RTA) and he in e na ional dynamism o he sec o in e ms o i s pe cen age in wo ld o al pa en s. The sou ce has been he US pa en o ice and he pe iod selec ed 1993-2003, di- ided in o wo sub pe iods. 1993-1998 and 1999-2003. Pa en s ha e been ob ained a wo digi le el o NACE classi ica ion as p o ided by Eu os a . RTA has been calcula ed o he sub pe iod 1999-2003 while he echnological dynamism o he sec o s has been es ima ed h ough he di e ence be ween he pe cen - ages each sec o has in o al pa en s in he second pe iod compa ed wi h he same pe - cen age in he i s one. Combining he wo c i e ia we a i e a a y- pology wi h ou cases: 1: sec o s wi h RTA > 1 and an inc ease o i s pe cen age in wo ld pa - en s be ween he wo pe iods ( Dynamic Spe- cialisa ion ). 2: sec o s wi h RTA<1 and a de- c easing pa icipa ion in o al pa en ing ( Re- ea ). 3: sec o s wi h RTA > 1 and a dec eas- ing pa icipa ion in wo ld echnological dyna- mism ( S a iona y Specialisa ion ) and 4: sec o s wi h RTA < 1 and an inc easing pa icipa ion in o al pa en s ( Los Oppo uni ies ). SECTORAL CLASSIFICATION Los Oppo uni ies Sec o s Tanning, d essing o lea he ; manu ac u e o luggage Manu ac u e o ab ica ed me al p oduc s, excep machine y and equipmen Manu ac u e o o ice machine y and com- pu e s Manu ac u e o elec ic mo o s, gene a o s and ans o me s Manu ac u e o accumula o s, p ima y cells and p ima y ba e ies Manu ac u e o ligh ing equipmen and elec- ic lamps Manu ac u e o elec ical equipmen n.e.c. Manu ac u e o elec onic al es and ubes and o he elec onic componen s Manu ac u e o ele ision and adio ansmi - e s and appa a us o line elephony and line eleg aphy Manu ac u e o ele ision and adio ecei - e s, sound o ideo eco ding o ep oducing appa a us and associa ed goods Manu ac u e o indus ial p ocess con ol equipmen Manu ac u e o op ical ins umen s, pho o- g aphic equipmen Manu ac u e o wa ches and clocks Manu ac u e o mo o ehicles, aile s and semi- aile s Manu ac u e o o he anspo equipmen Dynamic Specialisa ion Sec o s Manu ac u e o ex iles Manu ac u e o wea ing appa el; d essing; dyeing o u Manu ac u e o basic me als Manu ac u e o machine y o he p oduc ion and use o mechanical powe , excep ai c a , ehicle and cycle engines Manu ac u e o o he gene al pu pose ma- chine y Manu ac u e o ag icul u al and o es y ma- chine y Manu ac u e o machine- ools (spli in o DK2941, DK2942 and DK2943 in NACE Re .1.1) Manu ac u e o o he special pu pose ma- chine y Manu ac u e o domes ic appliances n.e.c. Manu ac u e o elec ici y dis ibu ion and con ol appa a us, manu ac u e o insula ed wi e and cable 22 Manu ac u e o u ni u e; manu ac u ing n.e.c. Re ea Sec o s Manu ac u e o obacco p oduc s Manu ac u e o wood and o p oduc s o wood and co k, excep u ni u e; manu ac u e o a icles o s aw and plai ing ma e ials Manu ac u e o o he non-me allic mine al p oduc s Manu ac u e o medical and su gical equip- men and o hopaedic appliances Manu ac u e o ins umen s and appliances o measu ing, checking, es ing, na iga ing and o he pu poses, excep indus ial p ocess con ol equipmen S a iona y Specialisa ion Sec o s Manu ac u e o ood p oduc s and be e ages Manu ac u e o pulp, pape and pape p od- uc s Publishing, p in ing, ep oduc ion o eco ded media Manu ac u e o coke, e ined pe oleum p od- uc s and nuclea uel Manu ac u e o basic chemicals Manu ac u e o pes icides and o he ag o- chemical p oduc s Manu ac u e o pain s, a nishes and simila coa ings, p in ing ink and mas ics Manu ac u e o pha maceu icals, medicinal chemicals and bo anical p oduc s Manu ac u e o soap, de e gen s, cleaning, polishing Manu ac u e o o he chemical p oduc s Manu ac u e o man-made ib es Manu ac u e o ubbe and plas ic p oduc s Manu ac u e o weapons and ammuni ion Sou ce: Own elabo a ion ANNEXE B TABLE B1: Calcula ed Va iables. VARIABLE CALCULUS FROM PITEC VARIABLES AND DESCRIPTIÓN EGTINN (GTINN/CIFMED*100) Inno a ion e o GTINNpw (GTINN/TAMMED) Expendi u e in inno a ion pe wo ke PIDTEJCpw (PIDTEJ/TAMMED*100) R&D s a pe 100 wo ke s. PGINTID (GINTID/GTINN*100) % In e nal R&D expendi u e PGEXTID (GEXTID/GTINN*100) % Ex e nal R&D expendi u e PGID (PGINTID+PGEXTID) % R&D expendi u e PGMAQUI (GMAQUI/GTINN*100) % Expendi u e in acquisi ion o machines, equipmen and so wa e PGTECNO (GTECNO/GTINN*100) % Expendi u e in acquisi ion o ex e nal know-how PGPREP (GPREP/GTINN*100) % Expendi u e in p epa a ion o p oduc ion/dis ibu ion. PGFORM (GFORM/GTINN*100) % Expendi u e in aining PGMARKET (GMARKET/GTINN*100) % Expendi u e in in oduc ion o inno a ions FPRO (F1) Own unds FEMP (F2+F3+F4) Funds om o he i ms FEMPEXT (F11+F12) Funds om o he o eign i ms FAP (F5+F6+F7+F8) Funds om AAPPs FUNI (F9+F15) Uni e si y unds FIPSFL (F10+F16) Funds om IPSFLs Sou ce: Own elabo a ion om PITEC. 23 TABLE B2: Va iables. NAME DESCRIPTIÓN TAMMED A e age numbe o wo ke s in he sphe e o ac i i y o which he i m belongs. CIFMED A e age igu e o businesses in he sphe e o ac i i y o which he i m belongs EXPMED A e age expo olume in he sphe e o ac i i y o which he i m belongs. INVMED A e age g oss in es men in ma e ial goods in sphe e o ac i i y i belongs o. INNOVE Ca ies ou inno a ion ac i i ies. INNOVEM Inno a ion de eloped by i m o g oup. INNOVEC Inno a ion de elope in coope a ion wi h o he i ms o ins i u ions. INNOVET Inno a ion de elope by o he i ms o ins i u ions. INNPROD Inno a ion p oduc s om ( -2) o INNPROC Inno a ion p ocess om ( -2) o GINTID Figu e o in e nal R&D expendi u e. GEXTID Figu e o ex e nal R&D expendi u e. GMAQUI Figu e o expendi u e on acquisi ion o machine y, equipmen and so wa e. GTECNO Figu e o expendi u e on acquisi ion o ex e nal know-how. GPREP Figu e o expendi u e on p oduc /dis ibu ion p epa a ion.. GFORM Figu e o expendi u e on aining. GMARKET Figu e o expendi u e on in oduc ion o inno a ions. EGTINN Inno a ion e o PIDTEJpw EJC s a in R&D pe 100 wo ke s. INFUN Basic o undamen al esea ch INAPL Applied esea ch DESTEC Technological de elopmen . FPRO Own unds FEMP O he i ms’ unds FEMPEXT Funds om o he o eign i ms. FAP AAPP unds FUNI Uni e si y unds FIPSFL IPSFL unds FUE EU p og am unds FEXT O he unds om ab oad COOPERA Coope a ed om ( -2) a wi h o he i ms PAT Reques o pa en s PATNUM Numbe o eques s o pa en s PATOEPM OEPM Pa en s PATEPO EPO Pa en s PATUSPTO USPTO Pa en s PATPCT PCT Pa en s PATINT In e na ional Pa en s (ou side OEPM) NESTR Non- echnological inno a ion s a egy NGEST Non- echnological inno a ion managemen NORG Non- echnological inno a ion o ganiza ion NMARK Non- echnological inno a ion : ma ke ing NESTE Non- echnological inno a ion: aes he ic o subjec i e change Sou ce: Own elabo a ion om PITEC. 24 TABLE B3: Co espondences o PITEC sec o al classi ica ion and RTA-Dynamism sec o al ypology. PITEC SECTOR RAMAI D DESCRIPTION NACE_RE V_1 SECTORAL TYPOLOGY 02 Manu ac u e o ood p oduc s and be e ages DA_15 3 (los oppo uni ies) 03 Manu ac u e o obacco p oduc s DA_16 2 ( e ea ) 04 Manu ac u e o ex iles DB_17 1 (dynamic speciali- sa ion) 05 Manu ac u e o clo hing / d essing and dyeing o u DB_18 1 (dynamic speciali- sa ion) 06 Tanning and d essing o lea he / manu ac u e o luggage, handbags, saddle y, ha ness and oo wea DC_19 4 (s a iona y specia- lisa ion) 07 Manu ac u e o wood and o p oduc s o wood and co k, excep u ni u e/ manu ac u e o a icles o s aw and plai ing ma e ial DD_20 2 ( e ea ) 08 Manu ac u e o pulp, pape and pape p od- uc s DE_21 3 (los oppo uni ies) 09 Publishing, p in ing and ep oduc ion o e- co ded media DE_22 3 (los oppo uni ies) 10 Manu ac u e o coke, e ined pe oleum p od- uc s and nuclea uel DF_23 3 (los oppo uni ies) 11 Manu ac u e o chemicals and chemical p od- uc s (excep Manu ac u e o pha maceu icals, medicinal chemicals and bo anical p oduc s) DG_24 excep 24.4 3 (los oppo uni ies) 12 Manu ac u e o pha maceu icals, medicinal chemicals and bo anical p oduc s DG_24.4 3 (los oppo uni ies) 13 Manu ac u e o ubbe and plas ic p oduc s DH_25 3 (los oppo uni ies) 14 Manu ac u e o ce amic iles and lags DI_26.3 2 ( e ea ) 15 Manu ac u e o o he non-me allic mine al p oduc s (excep Manu ac u e o ce amic iles and lags) DI_26 excep 26.3 2 ( e ea ) 16 Manu ac u e o basic i on and s eel and o e ous alloys and e ous p oduc s DJ_27.1, 27.2, 27.3, 27.51, 27.52 1 (dynamic speciali- sa ion) 17 Manu ac u e o basic p ecious and non- e ous me als and non- e ous p oduc s DJ_27.4, 27.53, 27.54 1 (dynamic speciali- sa ion) 18 Manu ac u e o ab ica ed me al p oduc s (ex- cep machine y and equipmen ) DJ_28 4 (s a iona y specia- lisa ion) 19 Manu ac u e o machine y and equipmen n.e.c DK_29 1 (dynamic speciali- sa ion) 20 Manu ac u e o o ice machine y and com- pu e s DL_30 4 (s a iona y specia- lisa ion) 21 Manu ac u e o elec ical machine y and appa- a us n.e.c. DL_31 4 (s a iona y specia- lisa ion) 22 Manu ac u e o elec onic al es and ubes and o he elec onic componen s DL_32.1 4 (s a iona y specia- lisa ion) 23 Manu ac u e o adio, ele ision and commu- nica ion equipmen and appa a us DL_32 excep 321 4 (s a iona y specia- lisa ion) 24 Manu ac u e o medical, p ecision and op ical ins umen s, wa ches and clocks DL_33 2 ( e ea ) 25 Manu ac u e o mo o ehicles, aile s and semi- aile s DM_34 4 (s a iona y specia- lisa ion) 26 Building and epai ing o ships and boa s DM_35.1 4 (s a iona y specia- lisa ion) 27 Manu ac u e o ai c a and spacec a DM_35.3 4 (s a iona y specia- 25 lisa ion) 28 Manu ac u e o o he anspo equipmen DM_35, excep 35.1, 35.3 4 (s a iona y specia- lisa ion) 29 Manu ac u e o u ni u e DN_36.1 4 (s a iona y specia- lisa ion) 30 Manu ac u e o games and oys DN_36.5 4 (s a iona y specia- lisa ion) 31 Manu ac u e o games and oys DN_36, excep 36.1,36.5 4 (s a iona y specia- lisa ion) Sou ce: Own elabo a ion om PITEC and OECD pa en d