Taking up the proper modes of innovation - DUI, STI or both?

Abstract Next to R&D based innovation activities, the STI-mode, there is an innovation mode based on doing, using and interacting without R&D, the DUI mode. For both, STI and DUI, internally and externally oriented sub-modes can be distinguished. A gap in the literature exists, however, with respect to when these modes are implemented and with respect to the relationship between these modes. This paper attempts to fill these gaps. The analyses are based on data from the German Community Innovation Survey and apply a two-step approach, the adoption-productivity approach. As a first result, the relations among the different sub-modes of respectively DUI and of STI are adopted in a complementary way. Combinations of sub-modes between main modes, STI and DUI, are less likely, indicating in a substitutive relationship. Turning to performance of the various sub-modes, it appears that there are differences between DUI and the STI sub-modes and their combinations to positively affect the likelihood of incremental as well as of radical innovation. Whereas for radical innovation STI sub-modes perform rater well, DUI sub-modes would gain in performance when being combined with STI sub-modes. The opposite holds for the case of incremental innovation. Focusing on SMEs and on peripheral compared to central regions delivers further results of the effect of innovation sub-modes.