Differences in the Determinants of Product and Process Innovations: The French Case

Empirical studies have noticed the differing impact of product and process innovation on international competitiveness, the level of employment and the types of skills used, and on the profit rate of firms (Vernon, 1966; Rottmann and Ruschinski, 1997; Duguet and Greenan, 1997; Capon et al., 1992). These studies show that the type of innovative behaviour of firms is important. However, little is known from either a theoretical or an empirical point of view, about the determinants of these different types of innovation. Therefore, the purpose of this study is to identify the microeconomic determinants of the innovative behaviour of French manufacturing firms. Studying a sample of innovative firms, we try to understand why they develop product innovations rather than process innovations, or product and process innovations simultaneously.