INNOVATION DIFFERENCES BETWEEN SERVICE AND NON-SERVICE FIRMS IN CROATIA

Services have different characteristics than products, and naturally
we would expect this to be refl ected in innovation development practices of service companies. Although there exist empirical studies that address this issue in developed economies, no study to date investigated this question in a transition country. In particular, this paper explores whether service firms in Croatia are inclined to adopt modern business tools like new product development process, and whether they differ in the use of business functions in product development. The paper is based on an empirical study of Croatian companies performed in spring 2002.