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Despite the recognition that the determinants of exploratory and exploitative innovation differ, whether and how corporate culture affects exploratory and exploitative innovation has not been examined much in the literature. This study aims to fill this gap in the literature and empirically examines the relationship between corporate culture and product innovation using a unique survey of Japanese firms. From the survey, we identify four types of corporate culture in the Competing Values Framework and two types of product innovations (product novelty): explorative innovations (new-to-market products) and exploitative innovations (new-to-firm products). We employ a bivariate probit model to examine the effect of corporate culture on making new-to-market products and new-to-firm products. We find that firms that selected the words "market impact" and "creativity", both of which represent a Create-oriented culture, to describe their corporate culture in the survey are more likely to introduce new-to-market products. In contrast, firms that selected "bottom-up approach", which represents a Collaborate-oriented culture, have a higher likelihood of introducing new-to-firm products. The results suggest that the link between corporate culture and product innovation depends on whether a firm pursues explorative or exploitative innovations. [ABSTRACT FROM AUTHOR]

We quantitatively examine the factors which account for differences in innovation output depending on the mode of international activities, employing the innovation accounting framework proposed by Mairesse and Mohnen [2001.To be or not to be innovative: An exercise in measurement. NBER Working Paper No. 8644. Cambridge, MA: National Bureau of Economic Research; 2002. “Accounting for Innovation and Measuring Innovativeness: An Illustrative Framework and an Application.”American Economic Review92 (2): 226–230]. We find that internationally engaged firms use more innovation inputs and generate more innovation outputs. Firms with R&D establishments abroad show the best innovation performance. A significant part of the higher innovation performance of internationally engaged firms can be explained by their greater intra-firm knowledge spillovers, R&D intensity, perceived competitive pressure, and proximity to basic research. However, more importantly, our innovation efficiency analysis suggests that engagement in international activities increases the sales amount of innovative products though it does not necessarily raise the probability that a firm successfully develops a new product or process. [ABSTRACT FROM AUTHOR]

Deals with a study which investigated the extent that technological assets contribute to the value of the firm, using the sample of several Japanese firms. Estimation methodology and data; Estimation results; Conclusion.