What is Innovation Results

Innovation literature sustains that the environment impacts firms' behaviors and this leads to changes in the firms' innovative strategies. Innovative strategies, in turn, impact on firms' performance, which feedbacks the set of decisions (and possibilities) about the innovative strategy. Although there is a vast empirical literature that support this theory, scarce attention has been paid to the changes in the innovative behavior, resulting from these feedbacks between past and present decisions. This chapter aims to contribute to that gap in the literature by providing a dynamic perspective to the firms' innovative decisions. Results show that looking at continuities and changes in the firm's innovative strategy helps to understand how innovation impacts performance. This way, results show that the sources of path creation are a key element behind innovation and more research from that perspective could shed light on the subject.