The impact of non-technological innovation on technical innovation: do services differ from manufacturing? An empirical analysis of Luxembourg firms

Generally speaking, the support of technological innovation has been viewed in terms of input such as R&D and instruments such as legal protection. The literature on innovation highlights the interactive nature of the innovation process in which non-technological activities are essential. However, few works have taken into account the role of other innovative strategies such as marketing and organisational innovation, a role which may differ according to whether the firm is involved in manufacturing or in services. The purpose of this paper is to contribute to fill this gap by highlighting the effects of non-technological innovation strategies on technological innovation. For the empirical work, we used firm-level data drawn from the Community Innovation Survey 2006 for Luxembourg. Our results show that the effects of non-technological innovations differ depending on the phase of the innovation process. Marketing and organisational innovations significantly increase the likelihood of innovation, but not the commercial success of innovation. The study also shows the differentiated effects of the two types of non-technological innovation in manufacturing and service, and confirms the key role of organisational innovation for services.