Modelling the innovation value chain


Innovation events – the introduction of new products or processes – represent the end of a process of knowledge sourcing and transformation. They also represent the beginning of a process of exploitation which may result in an improvement in the performance of the innovating business. This recursive process of knowledge sourcing, transformation and exploitation comprises the innovation value chain. Modelling the innovation value chain for a large group of manufacturing firms in Ireland and Northern Ireland highlights the drivers of innovation, productivity and firm growth. In terms of knowledge sourcing,we find strong complementarity between horizontal, forwards, backwards, public and internal knowledge sourcing activities. Each of these forms of knowledge sourcing also makes a positive contribution to innovation in both products and processes although public knowledge sources have only an indirect effect on innovation outputs. In the exploitation phase, innovation in both products and processes contribute positively tocompany growth, with product innovation having a short-term ‘disruption’ effect on labour productivity. Modelling the complete innovation value chain highlights the structure and complexity of the process of translating knowledge into business value and emphasises the role of skills, capital investment and firms’ other resources in the value creation process.

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Divisions: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
College of Business and Social Sciences > Aston Business School
Additional Information: NOTICE: this is the author’s version of a work that was accepted for publication in Research policy. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Roper, S, Du, J & Love, JH, 'Modelling the innovation value chain' Research policy, vol. 37, no. 6-7 (2008) DOI
Uncontrolled Keywords: innovation,productivity,knowledge,business growth,Ireland,Business and International Management,Strategy and Management,Economics and Econometrics
Publication ISSN: 0048-7333
Last Modified: 18 Jul 2024 07:01
Date Deposited: 11 Mar 2019 17:49
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Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type: Article
Published Date: 2008-07
Authors: Roper, Stephen
Du, Jun (ORCID Profile 0000-0002-0449-4437)
Love, James H.



Version: Accepted Version

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