Eager and able: a study of innovation activity among young, mature and old firms in Norway

Abstract

This article investigates how age is related to innovation activity and innovation outcomes among firms in the Norwegian manufacturing and knowledge-intensive business services (KIBS) sectors. It aims to shed new light on two questions: (i) are young firms or old firms the most prolific innovators and (ii) are young firms more eager to innovate, while old firms are more able to innovate. It makes use of Community Innovation Survey (CIS) data and explores the two questions using probit model regression techniques. The article concludes that firms are at their most prolific state when they are neither young nor old – but mature. At this stage in their life cycle, firms are both eager and able to introduce innovations.