Marketing and Organisational Innovations in Entrepreneurial Innovation Processes and their Relation to Market Structure and Firm Characteristics

Torben Schubert
Fraunhofer ISI/ University of Karlsruhe

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     Last modified: February 5, 2009

Abstract
This paper analyses the influence of marketing and organisational changes on the innovation process. Using data from the German Community Innovation Survey (CIS) 2007, two questions are investigated. Firstly, are there firm and market characteristics triggering certain innovation strategies? This allows the examination of whether product/ process (PP) and marketing/ organisational (MO) innovations are more likely to occur on monopolistic or competitive markets, whether there is an optimal degree of competition, but also how important human capital is for the implementation of specific innovation strategies. Secondly, are MO innovations complementary to PP innovations or do they substitute them? Interesting findings are that MO innovations are rather complements than substitutes for technological innovations. Further, there seems to be a u-shaped relationship with respect to market share, where firms are most innovative if they have medium market shares.