# Pavitt's Taxonomy

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**Pavitt's Taxonomy** categorizes mostly large industrial firms along trajectories of technological change according to sources of technology, requirements of the users, and appropriability regime (Pavitt 1984). The [taxonomy](/source/Taxonomy_(general)) aims to classify innovation modes according to different sectoral groups and the flow of knowledge between such groups. It was first proposed by [Science Policy Research Unit](/source/Science_Policy_Research_Unit) (SPRU) researcher [Keith Pavitt](/source/Keith_Pavitt) at the [University of Sussex](/source/University_of_Sussex) and has since been applied in [innovation](/source/Innovation) research to describe and categorize industries and the firms therein ([Archibugi](/source/Daniele_Archibugi) 2001). According to Castellacci (2008), "Pavitt's model of the linkages between science-based, specialized suppliers, scale-intensive and supplier-dominated industries provides a stylized and powerful description of the core set of industrial sectors that sustained the growth of advanced economies during the Fordist age."

## Pavitt's Taxonomy

Pavitt's taxonomy consists of four categories of industrial firms:

1. **Supplier-dominated**: includes firms from mostly traditional manufacturing such as textiles and agriculture which rely on sources of innovation external to the firm.

1. **Scale-intensive**: characterized by mainly large firms producing basic materials and [consumer durables](/source/Consumer_durables), e.g. automotive sector. Sources of innovation may be both internal and external to the firm with a medium-level of appropriability.

1. **Specialized suppliers**: smaller, more specialized firms producing technology to be sold into other firms, e.g. specialized machinery production and high-tech instruments. There is a high level of appropriability due to the tacit nature of the knowledge.

1. **Science-based**: [high-tech firms](https://en.wikipedia.org/w/index.php?title=High-tech_firm&action=edit&redlink=1) which rely on R&D from both in-house sources and university research, including industries such as [pharmaceuticals](/source/Pharmaceuticals) and [electronics](/source/Electronics). Firms in this sector develop new products or processes and have a high degree of appropriability from [patents](/source/Patent), secrecy, and tacit [know-how](/source/Know-how).

## See also

- [Innovation](/source/Innovation)

- [Innovation system](/source/Innovation_system)

## References

- [Archibugi, D.](/source/Daniele_Archibugi) (2001). "Pavitt's Taxonomy Sixteen Years on: A Review Article". *Econ. Innov. New Techn*. **10** (5): 415–425. [doi](/source/Doi_(identifier)):[10.1080/10438590100000016](https://doi.org/10.1080%2F10438590100000016).

- Castellacci, F. (2008). ["Technological paradigms, regimes and trajectories: Manufacturing and service industries in a new taxonomy of sectoral patterns of innovation"](https://mpra.ub.uni-muenchen.de/26408/1/MPRA_paper_26408.pdf) (PDF). *Research Policy*. **37** (6–7): 978–994. [doi](/source/Doi_(identifier)):[10.1016/j.respol.2008.03.011](https://doi.org/10.1016%2Fj.respol.2008.03.011).

- Pavitt, K. (1984). "Sectoral patterns of technical change: towards a taxonomy and a theory". *Research Policy*. **13** (6): 343–373. [doi](/source/Doi_(identifier)):[10.1016/0048-7333(84)90018-0](https://doi.org/10.1016%2F0048-7333%2884%2990018-0).

## Further reading

- Fagerberg, J.; Mowery, D.; Nelson, R., eds. (2003). *The Oxford Handbook of Innovation*. Oxford: Oxford University Press.

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