Science vs experience - What determines how companies innovate

Innovation is a critical factor for business competitiveness and survival. This study uses a systematic PRISMA review to identify the factors that determine the adoption of STI (science) and DUI (experience) modes of innovation. The findings reveal that the choice is not mutually exclusive; the synergistic combination of both modes maximizes innovative performance. Internal factors (size, resources, culture) and external factors (sector, regional environment) influence this adoption, with large companies tending to integrate both approaches, while SMEs lean more towards DUI. It is concluded that the competitive advantage lies in developing absorption capacities to effectively integrate both modes, which requires managers and public policies to abandon one-dimensional approaches and foster ecosystems that support this dual strategy to achieve more robust and inclusive economic development.