Allocentrism and numerator-based innovation: Panel data evidence

Abstract

We explore the existence of a relationship between firms' allocentric approach, measured by their collaboration activities for innovation, and the orientation of their innovation. In particular, we propose a distinction between numerator-driven and denominator-driven innovation and how that relates to collaboration. We discuss the theoretical underpinnings of this relationship and test its existence using survey data from the PITEC, a panel of Spanish firms. We find that cooperation is indeed associated with a greater emphasis on numerator-driven innovation relative to denominator-driven innovation.