The study "Radical innovations and company age" shows that radical innovators differ from other companies in some important characteristics. Their share of all companies is only six percent, but they account for one third of the revenues that Austrian companies generate with innovations. On average, radical innovators are significantly younger than other firms. They are mostly found in R&D-intensive industries and knowledge-intensive services and make much greater use of external knowledge than the average of innovative firms in Austria.
Radical innovators also face major challenges in the innovation process: a lack of knowledge, a shortage of qualified personnel and excessively high costs mean that radical innovators are more often affected than other companies. Policymakers can support radical innovations by giving greater consideration to young companies in funding programs and by increasing acceptance of risky projects. In addition, more support for the networking of companies with non-European partners can benefit radical innovators. Thirdly, the results suggest stronger support for the growth and expansion phase of companies. Finally, long-term changes require a strengthening of the entrepreneurial spirit - especially among women - and more entrepreneurial education.
Key Words: Radical Innovation
Duration: 1 year
Funded by: Austrian Council for Research and Technology Development
Contact: Bernhard Dachs