Identifying complementary relationships between different types of innovation: Evidence from Community Innovation Survey 2012

We explore the complementarities between technological and organizational innovations by utilizing cross-sectional data taken from the Community Innovation Survey - CIS2012 for two group of countries: Central and Eastern Europe (CEE - Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Romania, Slovakia and Slovenia) and Western European countries (WE - Germany, Spain, Norway and Portugal). We find that in CEE there is no complementarity between the different types of innovation analyzed. On the other hand, we show that probably in WE there is complementary relationship between organizational and process innovations, but not between organizational and product innovation. Altogether, this indicates that there is a variety in the relationships between the types of innovation in more developed countries (the WE group), but not in less developed countries (CEE group).