Developing hi-tech industrial products for world markets

The innovation process for 81 industrial products developed and launched internationally by 55 Israeli electronic and chemical manufactures between 1980-5, was investigated. The performance of 25 preparatory marketing activities listed in the context of an innovation process model was studied. Factor analysis and cluster analysis were used to identify four total activity patterns. These patterns were found to be significantly correlated with economic success: best performers were the clusters identified as market guided developers and systematic planners. While the preparatory marketing activity patterns are related to firm characteristics market/product characteristics, and technological process characteristics, the major intercluster differences appear to arise from managerial practice and market strategy rather than external characteristics