This paper explores the relationship between Corporate Social Responsibility (CSR) and innovation from the strategic management perspective. Matching Community Innovation Survey (CIS) data and specific data collected on CSR behavior of Luxembourg firms, we found two types of firms as far as CSR practices are concerned. Cluster 1 firms adopted CSR practices to achieve economic goals without resorting to the formalization of these practices. In contrast, cluster 2 firms “learn CSR by doing” and by establishing CSR procedures and tools. We then estimated probit models to explain the different types of innovation (product, process, organizational). Firms in Cluster 2 are more innovative in terms of product once we control for firm characteristics and innovation drivers while firms in cluster 1 tend to reject organizational innovation. These results, which show the link between the CSR practices and different innovation types, have important consequences in terms of managerial recommendations and public policy support for innovation.
