---
title: "Innovation Does Not Equal R&D. Strategic Innovation Profiles and Firm Growth"
authors:
  - name: "Ketokivi, Mikko"
  - name: "Ali-Yrkkö, Jyrki"
    url: "https://www.etla.fi/henkilot/ali-yrkko-jyrki/"
    sameAs:
      - "https://orcid.org/0009-0005-2977-6878"
date_published: "2010-10-27"
series: "Discussion Papers no."
series_number: "1220"
jel_codes:
  - "L86"
  - "L8"
  - "L25"
language: "en"
publisher: "ETLA Economic Research"
pdf_url: "https://www.etla.fi/wp-content/uploads/2012/10/dp1220.pdf"
keywords:
  - "Innovation"
  - "firm"
  - "growth"
  - "non-technical"
  - "technological"
  - "technical"
identifier: "https://www.etla.fi/julkaisut/id/Discussion-Papers-no.-1220"
---

# Innovation Does Not Equal R&D. Strategic Innovation Profiles and Firm Growth

**Published:** 2010-10-27  
**Categories:** Publikationer  
**URL:** https://www.etla.fi/sv/publikationer/dp1220-en/

In this paper, we examine firm innovation and its link to firm growth. Instead of using the conventional conceptualization and operationalization of innovation in terms of the R&D budget, we use a more elaborate 12-dimensional conceptualization, which takes into account also the non-technological aspects of innovation. The 12-dimensional operationaliza-tion further enables the examination of strategic innovation profiles of individual firms. We find that different kinds of innovation activity all have effects on firm growth, but in different ways. R&D activity is important in that it leads to introduction of new products, but innovation in other dimensions – value chain strategy, brand, and distribution channels – is also linked to new product introduction. Value chain innovation is also related to the development and introduction of new services: innovation aimed at development and improvement of the customer experience in particular has a significant role in the development and introduction of new services.

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