Persistence in generating and adopting product innovations

Purpose The purpose of this paper is to test the existence of true persistence in the generation and adoption of product innovations in the context of a developing country. Design/methodology/approach A dynamic probit model with random effects is used to test true persistence relying on a panel data set constructed from three waves of the Colombian innovation survey (Encuesta de Desarrollo e Innvovacion Tecnologica) covering the time span from 2003 to 2008. Findings This paper empirically shows the existence of true innovation persistence for two of the three types of product innovation studied: the adoption of product innovation that is new to the firm; and the adoption of product innovation that is new to the national market. However, the study could not confirm true persistence in the generation of product innovation. Originality/value To the best of our knowledge, this is the first study that systematically tests innovation persistence differentiating between the adoption of innovations that are new t...