Non-technological and technological innovations: do services differ from manufacturing? An empirical analysis of Luxembourg firms

The literature on innovation highlights the interactive nature of the innovation process in which non-technological activities are essential. However, few works have taken into account the role of other innovative strategies such as marketing and organisational innovations. The purpose of this paper is to contribute to fill this gap. For the empirical work, we used firm-level data drawn from the Community Innovation Survey 2006 for Luxembourg. We find that the effects of non-technological innovations differ depending on the phase of the innovation process. Marketing and organisational innovations significantly increase the likelihood of innovation, but not the commercial success of innovation. The study also shows the differentiated effects of the two types of non-technological innovation in manufacturing and service firms.