Network Structures in Regional Innovation Systems

While interactive learning and inter-organizational relations are the fundamental building blocks in regional innovation system (RIS) theory, the framework is rarely related to investigations of regional knowledge network structures, because in RIS literature relational structures and interaction networks are discussed in a rather fuzzy and generic manner, with the “network term” often being used rather metaphorically. This paper contributes to the literature by discussing theoretical arguments about interactions and knowledge exchange relations in the RIS literature from the perspective of social network analysis. More precise, it links network-theoretical concepts and insights to the well-known classification of RIS types by Cooke [(2004) Introduction: Regional innovation systems – an evolutionary approach, in: P. Cooke, M. Heidenreich & H.-J. Braczyk (Eds) Regional Innovation Systems: The Role of Governances in a Globalized World, 2nd ed., pp. 1–18 (London: UCL Press)]. We thereby exemplarily show how the RIS literature and the literature on regional knowledge networks can benefit from considering insights of the respective other.     

How Electoral Systems Can Influence Policy Innovation

This paper argues that in certain areas of policy, electoral systems can influence policy innovation (how early countries will adopt certain policies). Electoral systems influence the number of parties that win representation and thereby influence the diversity of perspectives included in the policymaking process. It is argued here that this diversity facilitates elite and public consideration of new issues and ideas, and consequently, it leads to earlier debate and action on these issues and ideas. This dynamic is particularly relevant to controversial issues and ideas that major parties may be hesitant to address and that minor parties may be more incentivized to promote. In this paper, two issues/ideas are considered: extending rights to same‐sex couples and making material sacrifices to protect the environment. I show that countries with more proportional electoral systems tend to act earlier to protect the environment and that they tend to be early adopters of civil union legislation. These results are also supported by World Values Survey data showing public preference patterns that support these policy outcomes.     

Regional Innovation Systems and the Role of State: Institutional Design and State Universities in Turkey

This paper investigates the role of state played in the regional innovation systems through state universities and legal and institutional set-up within Turkey. Initially, the paper will discuss the lack of regional perspective in policy-making that, until very recently, was predominant in Turkey. Secondly, the paper examines two salient laws that have ramifications for regional economics. The key elements in regional innovation systems can be split apart into two sections. On one side there are technology development regions/centres, and university–industry joint research centres. On the other side, taking into account the public research undertaken, there are the state universities, and the role that they play in the earlier mentioned centres/regions. The econometric analysis asserts that each of these elements has a positive and statistically significant effect on the patenting performance of regions.     

Combined Innovation Policy: Linking Scientific and Practical Knowledge in Innovation Systems

New research indicates that firms combining the science-based STI (Science, Technology, Innovation) and the experience-based DUI (Doing, Using, Interacting) modes of innovation are more efficient when it comes to improving innovation capacity and competitiveness. With regard to innovation policy, the STI mode calls for a supply-driven policy, typically aimed to commercialize research results. The DUI mode suggests a demand-driven policy approach, such as supporting the development of new products or services to specific markets. This article analyses how the two types of innovation policies and the two innovation modes can be combined in regional innovation systems (RISs). The analysis builds on studies of the food industry and related knowledge organizations in two counties, Rogaland County (Norway) and Skåne County (Sweden), and two policy initiatives (NCE Culinology and Skåne Food Innovation Network) aimed at strengthening the innovative capability of the RISs. The analysis indicates that policies aimed to link science- and user-driven innovation activity should focus on building absorptive capacity of DUI firms (e.g. through increased scientific competence) and implementation capacity of STI firms (e.g. through increased market and process competence).     

Biotechnology Megacentres: Montreal and Toronto Regional Systems of Innovation

Canada hosts two major diversified biotechnology regional systems of innovation in its two largest cities. Similar in many respects, they display some particular characteristics. We review here the main theories on regional innovation systems and innovative clusters and proceed to analyse these two regional systems before concluding on the usefulness of several theories to study biotechnology regional innovation systems.|spagf|ro|epagf|     

Regional Innovation Systems and Economic Performance: Between Regions and Nations

This article aims at assessing the diversity of regional innovation systems and their economic performance in Europe. We propose to adapt the social systems of innovation and production (SSIP) framework at the regional level by identifying the specific arrangements of each part of the innovation and production system. Three key features of European regions are investigated using this framework: the diversity of regional SSIP, the interplay of regional and national determinants of such systems, and the impact of SSIP on regional performance. We identify a typology of regional configurations resulting from the combination of scientific, technological, educational and industrial indicators, using multivariate data analysis. A variance analysis approach is then developed in order to test the existence of specific regional growth regimes. The results highlight a persistently high level of diversity of regional configurations, notably among knowledge intensive regions, but also show that national institutional settings remain of fundamental importance in shaping a number of regional configurations. A final conclusion relates to the weak correlation observed between the structural characteristics of regions and their performance over the 2003–2007 period: regional performance remains primarily shaped by national trends. Overall, the paper questions the regional dimension of these “systems”.     

The Role of Location and Regional Networks for Biotechnology Firms in Israel

This article presents results of a study of the Israeli biotechnology sector. The findings of the study show that despite the small geographical size of the country, the Israeli biotechnology industry tends to a great extent to cluster around leading research institutes. Based on a survey of 109 high-tech projects, the study suggests that the relatively weak business background of the entrepreneurs, the fact that most of them have worked at research institutes and that most new biotechnology firms were originated from ideas that came out of universities or research institutes, can provide possible explanations for this geographical concentration. The research emphasizes the relative importance biotechnology entrepreneurs ascribe to networking, both in very early stages as well as in advanced stages of the firm development process. It is argued that although the focus of the network changes over time, both geographically and in content, its links to local research partners are maintained. It is suggested that earmarked regional support policies are crucial to the development of networks required by new biotechnology firms.     

Intermediaries in Regional Innovation Systems: High-Technology Enterprise Survey from Northern Finland

Intermediaries play an important role in national as well as in regional innovation systems, especially in innovation policy. In linking organizations within an innovation system, intermediaries are focusing on technology transfer, commercialization of ideas and funding. This research focuses on the role of intermediaries in high-technology product development in northern Finland. Based on a survey of 168 high-technology enterprises, funding services are regarded as the most important activity of intermediaries. Our results show that finance matters: a key actor within the Finnish innovation system in terms of direct funding and indirect collaborative resourcing, the Finnish Funding Agency for Technology and Innovation (TEKES), is considered the most important public sector organization in private sector product development. The survey also reveals that growth-driven companies with emphases on product innovation and high levels of investment in research and development for increasing their annual turnover benefit the most from intermediaries.     

Regional Innovation Support Systems: Recent Trends in Germany and East Asia

Since the beginning of the 1990s, one can observe a clear shift in the aims of regional policy in industrialized countries from reducing regional inequalities to developing endogenous small and medium-sized enterprises (SMEs) and innovation in regions through regional innovation support systems. Innovation support systems are defined as a group of actively cooperating organizations that support the innovativeness of SMEs. An innovation support system consists of all agencies found in three support stages, namely the provision of general information, technological advice and joint R&D projects, between firms (of which technology-following SMEs are the main group), higher education institutes (HEIs) and public research establishments (PREs). Agencies found in these stages try to help to solve innovation problems mainly of technology-following SMEs by either giving them advice themselves or by referring them to other agencies in a further stage of support. The agencies can be mainly supra-nationally, nationally or regionally initiated. This paper aims at comparing these regional innovation support systems in Germany and East Asia, that is Japan and South Korea, both concerning the instruments used, their impact on regional economic development, their level of organizational embeddedness in regions and the ability of regions to coordinate innovation support policies. The main conclusions of the paper are that there are similarities between the regional innovation support systems found in the countries when it comes to policy instruments, but that the countries differ concerning their level of regional embeddedness and the abilities of regions to coordinate innovation support policies. The paper also tentatively concludes that in countries where regions have the ability to coordinate policies into integrative innovation support systems, the impact on regional economic development tend to be larger than in countries where these abilities are lacking, that is where dirigiste and grassroots support systems prevail. One important explanation for the different coordinating abilities lies in the different political-administrative systems found in the studied countries (centralized in South Korea versus federal in Germany). Other factors explaining differences are: a time lag of development policies between countries, differences between the history of supporting SMEs in regions, supra-national support frameworks, the commitment of the political leaders in regions, collective trust and the size of countries.     

Change in the Innovation Process: New Knowledge Production and Competitive Cities--The Case of Stuttgart

The global integration of economic activities is bringing with it major changes in innovation processes. New kinds of innovation, such as service and organizational innovations, became increasingly important in the 1990s. The shift to new forms of knowledge creation reflects the emerging knowledge based economy. This has effects on the existing comparative advantages of metropolitan innovation systems and is a major challenge to the ability of cities to adjust, especially those in mature industrial sectors whose competitiveness is based on innovations in industrial technology and scientific and technological knowledge production. Stuttgart is one of these cities. Much of the comparative innovative strength of the Stuttgart region derives from the generation of synergy effects of its technological and institutional development paths. The high levels of industrial exports and the competitiveness of the global players in the Stuttgart region indicates how advantageous the technology based knowledge production and diffusion in the region has been for the innovativeness of the core industrial branches. The crisis at the start of the 1990s showed that the economic success of particular firms does not mean that the metropolitan region as a whole is innovative and competitive. The institutional structures used to establish and maintain the comparative innovative advantages of the industrial sector have hindered adjustment to new forms of knowledge production and diffusion. The paper examines the adjustment processes in the Stuttgart region which are changing the organization of innovation and learning in a way that makes it receptive to new forms of knowledge production and diffusion.     

Knowledge Production in European Regions: The Impact of Regional Strategies and Regionalization on Innovation

In the last 15 years, the regional scale was used to implement innovation strategies in European Union. Departing from the discussion of the relevance of innovation policy at the regional level, the article benefits from the knowledge production function framework to estimate patterns considering 175 European regions. It is intended to understand whether regional innovation strategies developed and applied between 1994 and 2001 were successful at an aggregated level in contributing for knowledge creation measured in terms of patents and high technology patents. The results underline the relevance of private R&D expenditure and medium and high technology employment to increase patent numbers. The models suggest also that administrative regionalization may be important to regional innovation and that the creation and implementation of a regional strategy have a positive contribution for high tech innovation.     

Networks and Innovation: The Role of Social Assets in Explaining Firms' Innovative Capacity

The claim of a positive association between a firm's social assets and its innovative capacity is a widely debated topic in the literature. Although controversial, such an argument has informed recent innovation policy across Germany, increasingly directed to the cluster formation. In the light of the growing attention and financial efforts that cluster-based innovation policies are receiving, it is worth answering two main questions. First, are firms with a relatively high level of social capital likely to be more innovative? Secondly, do companies pursuing innovation in partnership innovate more? This paper empirically answers these questions by exploring a cross-sectoral sample of 248 firms based in the Jena region. On the one hand, the extent to which a firm is integrated in its community life does not contribute to an explanation of its innovative performance. On the other hand, directed cooperation with the specific goal of innovating shows a positive impact on innovative performance. However, the correlation between the extent of the network of co-innovators and firms' innovative capacity presents an inverted U-shaped relation: there is a threshold in the number of co-innovators justified by the costs of innovating by interacting. A policy lesson can be drawn from these findings: cluster-based policies are to be treated with caution as firms face costs of networking and not merely benefits.     

Building a Knowledge Economy in Ireland Through European Research Networks

The success of the Irish economy, and the technology sector in particular, over the last decade has been well noted. This article seeks to uncover the role that Irish participation in the ESPRIT programme of the European Union's Fourth Framework Programme has played in the building of Ireland's knowledge economy through its promotion of research collaboration. The primary goal of ESPRIT was the promotion of networking between organizations of similar interest across Europe, and in this article we examine the effects of the imposition of these more formal networks on organizations. The shift towards the promotion of more informal networks among European organizations in the pursuit of innovation is highlighted. After looking at Irish participation in the programme, we gauge the success of various projects and partners, and note the differences between networks, which were in place before participation in ESPRIT, where personal networking was evident, and the more formal networks created by ESPRIT. What becomes most obvious from analysing Irish participation is the conscious move on the part of those networks with a prior existence to advance their own research agenda by means of ESPRIT.     

Knowledge Networks as a Regional Development Resource: A Network Analysis of the Interlinks between Scientific Institutions and Regional Firms in the Metropolitan region of Hanover,Germany

The debate on regional innovation potentials has concentrated in recent times upon the topic of regional knowledge networking. This article presents the findings of the first phase of a detailed network analysis of the cooperation relations between scientific institutions and firms in the “metropolitan region Hanover-Brunswick-Göttingen”. The research concentrated on the regional and supra-regional cooperation relations of approximately 500 science establishments of the region, including their interlinks with private sector firms. This analysis of a polycentric metropolitan region's knowledge networks in different fields of competence produced detailed information on the density of knowledge interlinking within the region, on the degree of connectivity between the region's scientific institutions and private sector firms, and on central network nodes within the regional innovation networks. The case study exemplifies the methodical approach of a regional network analysis and emphasizes the role of knowledge networks as a development resource which is of particular relevance to the region's innovation capacities.     

The Scientific Trajectory of the French School of Proximity: Interaction- and Institution-based Approaches to Regional Innovation Systems

The multi-faceted concept of proximity is often used nowadays in many theoretical and empirical analyses. It mainly originates in some French regional scientists' attempt, in the early 1990s, to develop new conceptual and methodological avenues with a view to the study of the industrial and spatial dynamics. The wide diffusion of the resulting research findings is explained by the fact that these scholars realized early on that it was in their interest to collectively structure their works through the setting-up of a research group. The present paper sets out to outline the scientific and institutional trajectories of the French group “Proximity Dynamics”, while underlining the progressive broadening of its scientific and institutional dimensions, as well as the main theoretical research fields these trajectories have permitted to investigate.     

Innovation System Effects on Technological Adoption in a Regional Value Chain

This paper examines the technology adoption rates of a sample of enterprises that are nominally members of the transportation equipment value chain. We utilize the regional innovation system (RIS) concept to identify and test key regional and corporate influences on technology adoption. Using data collected from a detailed survey instrument, our analysis considers adoption rates during the very period in which production equipment technologies are known to have grown very suddenly, i.e. the fourth quarter of 1994. Our findings indicate that the most important RIS factors are related to worker training and information spillover effects between proximate firms. In the main, our findings are supportive of policies that work indirectly through the market structure of regional economies and a firm's value-chain, as opposed to directly through regional technology agencies.     

The Evaluation of Regional Innovation and Cluster Policies: Towards a Participatory Approach

The objective of this article is to provide a reply to the following question: What is the most suitable way of tackling evaluation of new regional policies? Regional development has moved today to new arenas. Here, we are discussing learning communities and regions that are able to adapt themselves to the new competitive conditions. SMEs policies at the regional level have also changed. New regional policies devote much of their attention to networks of inter-firm and inter-institutional cooperation - clusters - and to regional innovation systems. As a consequence, evaluation methodologies are also changing looking for more creative ways of assessing the impact of these new policies. In our opinion, participatory evaluation seems to be more appropriate to the specific characteristics of new regional policies and more suitable for sorting out the problems posed by their evaluation. In addition, under this approach, evaluation can turn into a useful tool to mobilize communities for regional action , empower local agents and enhance learning capacity.