STI-DUI innovation modes and firm performance in the Indian capital goods industry: Do small firms differ from large ones?

N. Mathew*, G. Paily

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Despite the importance of informal modes of learning and innovation for developing countries, there is little empirical evidence on their role in firm performance. This paper examines the effect of formal and informal learning modes followed by small and large firms on their overall performance in the capital goods industry. Following the wider literature on national innovation systems, we categorise the innovation modes as formal Science, Technology and Innovation (STI) and informal learning by Doing, Using and Interacting (DUI) mode. We observe that in the case of small firms the informal learning and experience-based innovation is related to improved performance, while the formal STI mode does not have any effect. On the other hand, for large firms, both STI and DUI innovation modes are positively related to their sales growth. Our results indicate that building certain DUI capabilities may act as a pre-condition to enhance the strength of science and technology-based innovation strategies.
Original languageEnglish
Pages (from-to)435-458
Number of pages24
JournalJournal of Technology Transfer
Volume47
Issue number2
Early online date6 Jun 2021
DOIs
Publication statusPublished - Apr 2022

JEL classifications

  • o33 - "Technological Change: Choices and Consequences; Diffusion Processes"
  • o32 - Management of Technological Innovation and R&D

Keywords

  • Capabilities accumulation
  • Capital goods
  • Corporate performances
  • DUI
  • Developing countries
  • Engineering research
  • Firm Performance
  • Formal science
  • Indian capital goods industry
  • Informal learning
  • L20
  • Modes of innovation
  • National innovation systems
  • O32
  • O33
  • STI
  • Sales
  • Sales growth
  • Science and Technology
  • Small firm
  • CAPABILITIES
  • DETERMINANTS
  • PATTERNS
  • TECHNICAL CHANGE
  • GROWTH
  • COLLABORATION
  • TECHNOLOGY
  • RESEARCH-AND-DEVELOPMENT
  • KNOWLEDGE
  • SYSTEMS

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