The literature indicates that innovation and innovation success vary by industry sector (Ettlie and Rosenthal, 2011; Spithoven, Frantzen, and Clarysse, 2010). It especially points to differences between the manufacturing and the service sectors (Evangelista and Vezzani, 2010). Firms provide their main industry in the CIS survey according to the indus- try classification system of the European Community (i.e., Nomenclature des Activités Économiques dans la Communauté Européenne [NACE], which is similar to Standard Industry Classification [SIC]). The dummy variable Service has the value of zero for manufacturing firms (NACE codes 1–43) and one for service firms (NACE codes 45–86). Another dummy variable, Hitech, was also constructed, which receives the value of zero for firms in low-tech and medium- low-tech sectors (NACE codes 10–19, 22–25, 31–33) and one for firms in medium-high-tech and high-tech sectors (NACE codes 20, 21, 26–30).