Determinants of product innovation in entrepreneurial high-tech firms

Abstract

This study examines factors that determine the propensity of product innovation of entrepreneurial firms in ICT sector. These factors include R&D, founding team characteristics, education level of employees, environment, networking activities, adaptability to customer needs, and environment. Our Logit model shows that except environment, all of these variables have direct significant effects on product innovation in new ICT firms. But environment affects product innovation by interacting with adaptability to customer needs. Among them, education level of employees plays the most important role.