Innovative culture and differences for product versus process innovation: reflect on Confucianism and Taoism

This article examines the difference between innovative culture for product innovation vs. process innovation and sheds light on Confucian and Taoist philosophical roots in innovative cultures for the two types of innovation. We first identify four dimensions of innovative culture: freedom, openness, team spirit, and support & career development, and hypothesise that freedom and openness are more emphasized in innovative culture for product innovation, while team spirit and support & career development are more stressed in innovative culture for process innovation. Using survey data from 33 high-tech enterprises in China, we find support for our predictions. We further analyse that Taoism is more relevant to innovative culture for product innovation, whereas Confucianism is more related to innovative culture for process innovation. By distinguishing innovative cultures between product vs. process innovation and relating to Confucianism and Taoism, this paper provides a nuanced as well as philosophical understanding of innovative culture.