LAUSR

Abstract This study explores innovation processes in tourism within the context of Australian tourism enterprises. A coherent conceptual framework, drawing on the existing literature, is developed to analyse the innovation process. Using a longitudinal database and logistic regression model, the relationship between innovation inputs or determinants and two of the widely adopted innovation outputs in tourism—service and marketing innovation—are examined. Of the innovation inputs, the most important one is collaboration, followed by human capital, information technology, and funding. Among institutional factors, foreign ownership is a key driver, followed by market competition, firm size, and environment. The results provide new insights into the role and effects of the various inputs and related institutional factors that drive innovation efforts by tourism enterprises. Findings of this study should inform policy discussions and the development of strategies to enhance innovation capacity among tourism businesses.