Organizational innovation, internal R&D and externally sourced innovation practices: Effects on technological innovation outcomes

This paper focuses on determining how organizational innovation, together with other innovation activities, such as internal and externally sourced innovation practices, influences the probability of obtaining product and process innovations. The research relies on panel data methodology; random effects bivariate and univariate probit models are estimated, as well as the corresponding average marginal effects (AMEs) in order to examine the causal effects. The results confirm the existence of positive effects of internal R&D and externally sourced innovation practices, as well as a positive influence of organizational innovation on the realization of technological innovations. Regarding the enhancing influence of organizational innovation on the effect of internally or externally sourced innovation practices, findings point to a moderating effect only on the probability of obtaining complex technological innovations (product and process innovations, jointly).