Determinants of innovation novelty: Evidence from Australian administrative data

Abstract

We examine the determinants of innovation novelty ranging from new-to-firm to new-to-world innovation. Higher levels of novelty help firms capture a larger share of the market, increase exports, and create positive spillovers. Using firm-level panel data for 2005-06 to 2015-16, from administrative and survey sources, this paper provides the first exploration of the determinants of innovation novelty among Australian firms. Firm-specific variables such as R&D, Collaboration, foreign ownership, business focus on innovation, Skills in IT and business management are associated with higher levels of innovation novelty. There are important differences in the results based on firm size and industry.