Empirical Operations

Business method innovation in US manufacturing and trade

Using text analysis of business method (BM) patents, we show that BM innovation in the US manufacturing and trade sectors improves how a firm targets customers, manages product delivery, or enhances the product through service offerings. We then show that BM innovation creates value on average, but the value is larger when (1) it is engaged by trade (vs. manufacturing) firms; and (2) the firm's BM innovation covers the range of customer targeting, product delivery, and product service support.