Types of innovation by source

The OECD in Oslo Manual systematised innovation types by dividing the source of innovation into two groups: R&D and non-R&D.

„Research and experimental development (R&D) comprises creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications (as defined in the Frascati Manual). The term R&D covers three activities: basic research, applied research, and experimental development.” (OECD: Frascati Manual (2002): p. 30.)

The idea is to show that not all innovation processes in firms have to be developed or/and implemented in co-operation with R&D institutions. The majority of innovative SMEs are not linked to any R&D institution.

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