Modes of innovation in six industrial sectors

Patterns of innovation in 43 firms selected from six industrial sectors in Canada are examined. The sectors are pharmaceuticals, financial services, software services, pulp and paper, metallic products, and apparel. Modes of innovations are found to be differentiated and sector specific. Most firms are innovative in predictable ways, according to the logic of innovation prevailing in their industrial environment. A few firms, however, seem to use modes of innovation copied from other industries. In addition to industrial context, modes of innovation are influenced primarily by the firms' competencies, business opportunities, and managerial preferences. A taxonomy of modes of innovation extending beyond industrial lines is presented. Four configurations emerged from the data analysis: science-based product innovation, entrepreneurial fast-track experimentation, global cost leadership, and conventional reliance on information technology and process adaptation.<
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