Innovation research builds on the analysis of micro level data describing innovative behaviour of individual firms. One increasingly
popular type of data are Literature-based Innovation Output (LBIO) data. These are compiled by screening specialist trade
journals for new-product announcements. Notwithstanding the substantial advantages, the eligibility of LBIO data for innovation
research remains controversial. In this paper the merits of LBIO data are examined by means of comparative analysis. A newly
built LBIO database is systematically compared with the widely used Community Innovation Survey. It shows that both databases
identify similar innovators in terms of firm size, distribution across industries and degree of innovativeness: LBIO data
can be considered a fully fledged alternative to traditional innovation data, highly eligible for innovation research.