Marketing and organisational innovations in entrepreneurial innovation processes and their relation to market structure and firm characteristics

This paper analyses the influence of marketing and organisational changes on the innovation process. Using data from the German community innovation survey 2007, two topics are investigated: First, we analyse whether firm and market characteristics trigger certain innovation strategies. Second, this paper investigates whether marketing and organisational innovations (MO innovations) are complementary to product and process innovations (PP innovations) or whether they are substitutes. Our results suggest that firms choose broad innovation strategies, which combine MO and PP innovations, if they have large internal resources and intermediate market power. We also find that marketing innovations make product and process innovations more successful.