The effects of economic status and recent experience on innovative behavior under environmental variability: an experimental approach

We build and empirically test a model that predicts the display of innovative behavior as a function of environmental change, with recent experience and economic status acting as moderators. We start with the model developed by Slevin (1971), which evolved from the so-called innovation boundary. This is the threshold beyond which the display of innovative behavior becomes attractive. We show how environmental change creates uncertainty about the position of the innovation boundary; however, this uncertainty is reduced by recent experiences. Furthermore, economic status serves as both an enhancer and an inhibitor of innovation. Our model was tested and largely confirmed in two experiments: one conducted in a laboratory setting and one conducted as a discrete choice experiment. Currently experiments are rarely conducted in the field of innovation studies. By presenting this evidence we also hope that more authors will conduct experiments in their work.