Sources of innovation and innovation type: Firm-level evidence from the United States

Abstract

Only a handful of studies on innovation empirically analyze the links between firm innovation and the sources of that innovative activity of sources of innovation on types of innovation. To fill this gap in the literature, this study provides one of the first tests to identify how important sources of new information (suppliers, customers, other business people in the industry, workers, and university) are associated with types of innovations (product, process, and marketing). Data come from the 2014 National Survey of Business Competitiveness sponsored by the Economic Research Service at the United States Department of Agriculture (n = 10,952). The results show that innovation ideas emanating from customers, workers, and universities are positively associated with all types of innovations, suggesting that these sources are critical for developing different types of innovation. In particular, universities as a source of innovation activity are especially important. In contrast, other sources, such as suppliers and people in industry do not seem to be as important as a source of innovation.