Paper to be presented at the DRUID 2011 on INNOVATION, STRATEGY, and STRUCTURE - Organizations, Institutions, Systems and Regions at Copenhagen Business School, Denmark, June 15-17, 2011 Paradigm shift? The contribution of intensive open innovation to the innovative performance of EU firms Paul Windrum University of Nottingham Business School paul.windrum@nottingham.ac.uk Abstract It is suggested that a paradigm shift is taking place, from the old innovation model based on internal R&D to a new innovation model based on the intensive use of external sources (search depth) for innovation. We test this using Eurostat SIC4 data for 40 sectors in 18 countries. The findings suggest a more nuanced understanding of the role of external search is required. Internal R&D and firm size rather than search depth are found to be the key factors affecting the performance of radical innovators. External search is indentified as an important factor amongst incremental product innovators. These findings are consistent with the old innovation model. This cautions against suggestions that a paradigm shift has occurred. Jelcodes:O32,C24