Effect of External Innovation Capacity on Company Level Innovativeness

Abstract

This study focuses on the correlation of national innovation inputs and the external innovation environment with the company-level innovation output. Since all companies are aiming at sustainable innovation to ensure sustainable profit growth, the current literature has highlighted the need for a well-structured internal innovation system for innovation success and discussed the factors affecting the performance of organisations. The internal innovation system has its own dimensions that affect the success of the whole system and emphasize the significant impact of firms on innovation results. Do all companies with a high internal innovation competency and a suitable corporate culture have the chance to become worldwide innovative? What are the impacts of the external environment where the companies are located on the innovation success? And how big is the importance of external environmental inputs? This study seeks to answer these questions and draws attention to the appropriate external environment and conditions to increase firms' innovation competencies.