By Grant Illion Butterbaugh
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The estimated coefficients for each variable’s regression on product innovation are subtracted from the estimates for process innovation, by industry, in order to indicate the magnitude of the difference. The p-value tells us whether this difference in estimated coefficients is statistically significant. Table 3 provides some support for Hypothesis 1a, whereby pecuniary acquisition of technological IP has a positive and significant effect on product innovation, however only for the low-tech service industry.
In light of this, the model compares the returns to open innovation activities between service and manufacturing sectors. Although some research has shown that service and manufacturing firms often exhibit comparable patterns of the use of knowledge sources for technological innovation (Sirilli & Evangelista, 1998), the relative returns to these sources may differ substantially between industries. If service firms benefit from interactions with external suppliers due to the nature of service innovation and are indeed more passive adopters of technological innovation, then inbound open innovation will more strongly predict innovative performance in service firms than in the 19 Modes of Open Innovation in Service Industries and Process Innovation manufacturing sector.
An interesting aside from Laursen and Salter (2006) is that depth is a stronger predictor of sales from radical product innovations, whereas the effect of breadth is greater for sales from incremental product innovations. That is, the form of sourcing strategy impacts product innovation differently. Some authors differentiate two forms of process innovation: technological process innovation, which results from the incorporation of new goods and embodied knowledge into production or service delivery, and organizational process innovation, which involves learning and more intangible changes in the coordination of human resources, such as new management practices or ways of doing things (Edquist, Hommen, & McKelvey, 2001: 14-17).