Knowledge-Intensive Business Services as Knowledge Intermediaries in Industrial Regions: A Comparison of the Hsinchu and Tainan Metropolitan Areas

Abstract

The literature repeatedly stresses the role of knowledge-intensive business services (KIBS) as a provider of knowledge and information to other businesses and organizations. KIBS simultaneously promotes, mediates and enables client innovation. This investigation mainly seeks to link KIBS to the analytical structure of concepts, including regional innovation systems, knowledge exchanges and innovation patterns. This investigation interprets the role of KIBS as that of a knowledge intermediary that mediates and transmits knowledge among actors. This study also clarifies the mechanism of knowledge exchanges in different geographic innovation systems. The analytical results obtained by this investigation are applied to analyse the intermediary functions of KIBS in various metropolitan areas in southern and northern Taiwan. This investigation demonstrates variations in how KIBS act as knowledge intermediaries, and that these variations depend mostly on industrial cluster patterns, the dominant innovation patterns at their locations and the birth of sustainable KIBS. KIBS in large/core metropolitan regions, thus, are initially based on science, technology and innovation industrial activities, and further closely resemble doing, using and interaction industrial activities. Consequently, more informal learning processes, such as local buzz and discussion/competition relations, tend to develop in such regions.     

Urban concentration and labour market linkages in the Norwegian ICT services sector

Building on research that emphasizes the dependence of services firms on the networks and experiences of individual employees, this paper investigates the urban concentration of information and communication technology services employment in Norway from the perspective of labour market linkages. It finds that urban regions generally provide firms with access to sector-specific expertise. Beyond this, intrinsic region characteristics determine the position of individual firms in national labour markets for expertise: Firms in the dominant university town have strong contact points to academic labour markets, whereas firms in the industrial stronghold of the Western Capital region exploit a broader range of recruitment channels than firms in any of the other urban and non-urban locations. The results illustrate how capability building through recruitment is influenced by local conditions, and imply that the industry will continue to concentrate in the large-city regions where surrounding organizations provide firms with priveliged access to expertise. Implications for research, innovation policy and societal development more generally are drawn.     

知识密集型服务机构(KIBS)嵌入视角的集群企业成长实证研究框架

通过构建"知识密集型服务机构(KIBS)嵌入-集群网络结构-集群企业成长"的概念模型,本文分别对两阶段模型即"KIBS嵌入-集群网络结构"、"集群网络结构-知识能力-集群企业成长"进行深入理论分析,揭示了KIBS嵌入对集群企业成长的作用机制。     

Urban size and KIBS vertical disintegration: the case of Milan

The literature shows that market size favours firms’ vertical disintegration because it reduces transaction and knowledge coordination costs. The existing evidence is based primarily on cross-sectional data and on the manufacturing sector, with little or no attention is given to longitudinal data and services. This paper estimates the effect of urban size on the purchase of service inputs by knowledge-intensive business service firms located in the metropolitan region of Milan. Relying on a rich panel dataset, and adopting different econometric techniques to overcome endogeneity, we find a positive and statistically significant effect of increased urban population on the degree of KIBS vertical disintegration only when urban size is measured at the province level. We also find that this effect holds particularly in the case of traditional professional- rather than technology-related activities.     

LOCATING OUTSIDE A LINEAR CITY CAN BENEFIT CONSUMERS*

ABSTRACT We investigate the effects of restricting the locations of firms in Hotelling duopoly models. In standard location‐price models, the equilibrium distance between firms is too great from the viewpoint of consumer welfare. Thus, restricting the locations of firms and shortening the distance between them improves consumer welfare by reducing prices and transport costs. We introduce strategic reward contracts into location‐price models and find that, in contrast to the above result, restrictions on the locations of firms reduce consumer welfare. These restrictions reduce transport costs but increase prices by changing the strategic commitments of the firms.     

Networks Mobilized to Access Key Resources at Early Stages of Biotech Firms: A Comparative Analysis in Two Moderately Innovative Countries

This paper investigates the networking behaviour of biotechnology start-ups in peripheral locations. The aim is to understand whether the conditions found in this type of environment introduce some specificities in the networking process, namely in network building and early mobilization to access key resources. The paper compares biotechnology start-ups in Portugal and in Southern Italy, focusing on relationships with research organizations and on the relevance assumed by international connections, and investigating the role played by entrepreneurs’ personal networks. The research identified some common features that diverge from the typical biotechnology start-up behaviour and can be regarded as firms’ adaptive responses to the conditions faced. Notwithstanding the frequent presence of close connections with local research organizations—that often play functions that go much beyond that of a knowledge source—the local environment is a lesser determinant for a substantial proportion of firms than would be expected in start-ups. A distinctive feature of these firms is an extensive reliance on foreign sources, for different purposes and from the very early stages. Entrepreneurs’ personal networks are found to be instrumental, both to identify and obtain knowledge in the vicinity and to support the establishment of more complex distant relationships.     

Do industrial districts influence export performance and export intensity? Evidence for Spanish SMEs' internationalization process

This paper seeks to enhance the understanding of the role of the industrial districts in the internationalization process of small and medium-sized enterprises (SMEs). The study focuses essentially upon the following issue: Can the location inside industrial districts influence the export performance and export intensity of the Spanish SMEs? To address this question, this study draws upon a sample of 285 manufacturing firms located in the Valencian community (a Spanish region) surveyed during the period January 2000 to March 2000. It is shown that industrial district location, marketing differentiation, institutional networks, clients' networks, competitors' networks and global orientation of sector and company have a clear influence on firms export performance and export intensity. The results are basically consistent with the limited previous research.     

A city transformed: manufacturing districts and suburban growth in Montreal, 1850–1929

This paper examines the development of Montreal's industrial geography between 1850 and 1929. It is argued that a decisive feature of the evolution of the city's industrial and social landscape was the emergence of industrial districts on the moving urban frontier. The formation of new suburban districts and the reorganization of existing industrial districts were part of a developing urban spatial division of manufacturing. Three critical features underlay the restructuring of Montreal's industrial geography after 1850. Waves of industrial expansion and the development of a range of production trajectories altered the parameters of location within the city. Working-class suburbanization provided the requisite labour force for firms locating on the periphery. Local political and economic alliances created the physical, ideological and legal structures for suburban industrial growth and the rearrangement of the urban fabric.     

Where cities fail to triumph: The impact of urban location and local collaboration on innovation in Norway

The role of cities in fostering innovation has for long been taken for granted. Agglomeration and the knowledge spillovers generated in dense urban environments have been considered fundamental drivers of innovation. This view has, however, become challenged by research questioning the returns to physical agglomeration and local networking, placing instead more emphasis on the importance of interregional and international collaboration, and on innovation in peripheral regions. This paper delves into the debate on the role of cities for innovation by examining the interplay between urban location and local collaboration in Norway. It uses data from the Community Innovation Survey for 2006–2010 to map out the geographical dimension of R&D collaboration in Norwegian firms with a view to assessing whether different types of R&D collaboration in urban and rural locations affect firms’ propensity to innovate. The results show that local collaboration is associated with increased process and organisational innovation, while it does not produce higher levels of product or marketing innovation. Conversely, international collaboration is connected with higher probabilities of product, new-to-market and marketing innovations. Furthermore, location in urban or rural areas makes no difference for most innovation outcomes in Norway when other characteristics are controlled for. Location in cities also does not shape the returns to local R&D collaboration. Hence, the role of cities for innovation in Norway, whether in themselves or as sites for dense local interaction, is less relevant than the urban innovation literature would predict.     

Evolution of Knowledge Intensive Services in a High-tech Region: The Case of Hsinchu,Taiwan

Communication costs have reduced markedly owing to improvements in communication technology. Despite this development, face-to-face interactions facilitated by geographic agglomeration remain important in high-tech innovation activities owing to the ambiguity and uncertainty related to new knowledge. Consequently, location remains a major influence on global strategies of transnational companies, and enables global cross-border divisions of labour in high-tech industries. On the one hand, this phenomenon transforms the geographic distribution and structure in industry; on the other hand, it creates demand for strategic functions in management and organizational innovation. The emergence, introduction and operation of such functions all rely on the support of specialized service industries. During the two decades of development of the Hsinchu Science-based Industrial Park (HSIP), the area around HSIP saw the gradual formation of a distinctive and strong network including production, incubation and research and development (R&D) activities. Within this network, knowledge intensive services provide a crucial interface between the supportive environment and technological infrastructure. This investigation analyses the interactions, geographic transformation and distribution between HSIP firms and producer services around HSIP, as well as the coordination between HSIP firms and research institutions. This investigation found that competition strongly influences the development and geographic transformation of producer services. Together with different industrial resources, they formed production networks. Such networks caused the development and geographic transformation of the Hsinchu area, and thus further influenced the growth of knowledge-intensive service businesses.     

Does Combinatorial Knowledge Lead to a Better Innovation Performance of Firms?

The knowledge base concept in the past was often applied in its “pure form”, i.e. it was assumed that there are dominant knowledge bases in particular sectors and firms shaping knowledge and innovation processes and related networks. For “analytical sectors” such as biotech, it has been argued that codified knowledge generated by universities and R&D organizations is the key for innovation, whereas “synthetic sectors” such as machinery innovate more incrementally by recombining existing knowledge often drawn from suppliers or service firms. Empirical literature has partly confirmed these patters, but also shown more complex knowledge processes. More recently it has been argued that combinations of different knowledge bases might enhance the innovation performance of firms. For example in “analytical sectors”, firms might benefit not just from new and basic knowledge generated by research, but also from recombining existing and applied knowledge or by drawing on symbolic knowledge. Combinatorial knowledge bases might also be relevant for “synthetic” and “symbolic sectors”, but in different forms. This study investigates for the ICT sector in regions of Austria if the reliance on combinatorial knowledge leads to a better innovation performance than the use of more narrow knowledge bases.     

生产网络演化视角下的城市产业升级路径研究——以汕头市纺织服装行业为例

如何根据自身经济活动所具有的空间组织特征和演化轨迹来选择升级路径,是城市政府需要解决的重要问题。本文以粤东城镇群区域中心城市汕头为例,选择具有传统优势的纺织服装产业,整合经济地理关系范式和演化范式的方法构建分析框架,运用访谈获得的企业关系数据和相关资料,分别对汕头纺织服装行业生产组织的历史路径以及当前在区域生产网络中的地位进行分析,提出汕头纺织服装行业未来进行升级的路径选择。本文在城市产业发展规划如何借鉴西方经济地理新理论范式方面进行了尝试性探索。     

A Socio‐Geographic Perspective on Human Activities in Social Media

Location‐based social media make it possible to understand social and geographic aspects of human activities. However, previous studies have mostly examined these two aspects separately without looking at how they are linked. The study aims to connect two aspects by investigating whether there is any correlation between social connections and users' check‐in locations from a socio‐geographic perspective. We constructed three types of networks: a people–people network, a location–location network, and a city–city network from former location‐based social media Brightkite and Gowalla in the U.S., based on users' check‐in locations and their friendships. We adopted some complexity science methods such as power‐law detection and head/tail breaks classification method for analysis and visualization. Head/tail breaks recursively partitions data into a few large things in the head and many small things in the tail. By analyzing check‐in locations, we found that users' check‐in patterns are heterogeneous at both the individual and collective levels. We also discovered that users' first or most frequent check‐in locations can be the representatives of users' spatial information. The constructed networks based on these locations are very heterogeneous, as indicated by the high ht‐index. Most importantly, the node degree of the networks correlates highly with the population at locations (mostly with R² being 0.7) or cities (above 0.9). This correlation indicates that the geographic distributions of the social media users relate highly to their online social connections.     

Innovation projects and local production networks: A case study of Hertfordshire

This paper evaluates some of the key arguments underlying what is called here the local production network paradigm (LPNP). These are presented as three interlinked hypotheses that turn on the idea that firms competing in world markets need to accommodate continuous change by fostering product or process innovation. The definition of innovation used in this study is “the commercially successful exploitation of new technologies, ideas or methods through the introduction of new products or processes, or through the improvement of existing ones” (EC DG XIII, 1996, p. 54).

One conventionally described organizational response to this requirement to accommodate continuous innovation is to dis‐integrate firms and set up local production networks. Local production networks are defined in this study as “collaborative linkages between local firms and local factors of production”. Such networks are said to rely on local resources of various kinds to enable them to innovate on a continuous and incremental basis. As a result of such dependencies on local factors, and their interconnectedness with each other, the local production network (LPN) firms then become ‘embedded’ in their localities. Such networked economies have been variously described as new industrial districts, areas of flexible specialization, and innovative milieux.

The evidence presented to test these hypotheses is based on a case study of innovative, award‐winning firms in Hertfordshire. The findings show that although these firms do compete successfully in fast‐moving international markets, they do not rely much on local production networks, as defined here, to enable them to do so. The findings call into question the general applicability of the LPNP. Questions are raised particularly with respect to innovation in the important minority of highly innovative core metropolitan regions.

Innovation is argued to be an interactive process that is both driven by a steady supply of technological advances and stimulated by different types of consumer demand. In the case of the firms interviewed in Hertfordshire, most of their innovative projects were developed by the firms working individually, and in isolation, from other local businesses using high quality, knowledge, information, human resources and venture capital. At the same time, these firms were also pulled by demands from military, health and company consumers. Only in the case of the minority of innovations that were purchased in the first instance by private final consumers were local production networks of some significance.     

Renewal through Culture? The Role of Museums in the Renewal of Industrial Regions in Europe

Abstract

Bilbao has become a role model for the regeneration of declining urban and industrial regions. The debate on the so-called Bilbao effect showed that rundown industrial cities and regions might profit from culture-based development strategies, even if successful urban regeneration cannot be induced by only one flagship project without an appropriate local and regional context. Based on the comparative analysis of six, in general recently founded, museums in five countries (Guggenheim Museum Bilbao; Louvre in Lens; Centre Pompidou in Metz; Istanbul Modern Art Museum; Museum Folkwang in Essen; Museum of Natural History in Florence), the authors of this special issue discuss the role of these museums in building the image and the attractiveness of their local and regional environment, the cross-fertilization of ideas and the integration of a region in global circuits and networks. Museums can play an important role in building up “social capital”, creating networks between different professionals, groups, sectors and segments of society, bridging diverse social backgrounds, lowering coordinating costs for individuals and businesses, and increasing the capacity of firms to reconnect.     

Location and collaboration: Manufacturing firms' use of knowledge intensive services in product innovation

The paper addresses the relation between geographical location of firms and collaboration with knowledge intensive service providers on product innovation in a small country setting. The analysis shows that even in a small country with limited geographical distances firms located in peripheral areas are less likely to be broad users of collaboration with knowledge intensive service providers in the process of product innovation than firms located in major urban areas. However, it is only amongst firms located in the periphery that collaboration strategy seems to matter in the sense that differences in development in employment can be detected between broad and rare users of collaboration.     

The Re-emergence of a Media Industry Cluster in Leipzig

This paper begins with the proposition that an analysis of the potentialities of industrial networks has to consider the wider context of the social organization of production. Recent work on industrial clustering has shown that successful clusters are embedded in tight networks of social relations between suppliers, producers, customers and institutions. Localized capabilities, such as specialized resources and skills, conventions and other local institutional structures, provide the basis for inter-firm cooperation. Based on Malmberg and Maskell's (2001) conceptualization of localized industrial clusters, I discuss the horizontal, vertical and institutional cluster dimensions as a basis for empirical analysis. In addition, attention will be drawn to the external dimension and power relations of a cluster which have a strong impact on its growth trajectory. This conceptualization is used as a basis for studying the new Leipzig media industry cluster. Leipzig, which is located in the Neue Länder (States of the former German Democratic Republic), has traditionally been a major centre of industrial production in Germany. After the German unification, a significant proportion of Leipzig's manufacturing activities were terminated or downsized. Interestingly, a new media cluster has developed during the 1990s, driven by the activities of the MDR (Middle German Television and Broadcasting Service). This has stimulated substantial start-up activities in branches of the media industry, such as film/TV production, new electronic services/interactive media, graphics/design, PR/marketing and media-related hardware/software. Being virtually the only sector which has grown in recent years, the media sector has stabilized the local economy. In this paper, I investigate those forces which have supported start-up and location decisions of media firms and the role of local institutions and policy programmes in the clustering process.     

Explanations of firm survival in renewable energy in the United States: a study of ethanol refineries

ABSTRACT

Firm survival is key in understanding the evolution of industries and the larger economy. Although exit and entry are common occurrences during an industry’s life cycle, it is not always easy to predict who will survive. Literature suggests a range of factors, both internal and external to the firm, and corresponding measures as determinants of survival or exit. However, these measures do not directly explain firm-level strategies such as internal adjustments to external conditions. In this paper, we use the U.S. biofuel industry to examine firm survival. As a resource-based industry focused on process innovation, biofuel production attracted farmer-entrepreneurs and related-industry investors after policies mandates and subsidies generated a dedicated market for the fuel. Despite support, not all firms survived a period of industrial sorting that followed the 2007–2008 recession. This study shows that local connections/embeddedness, knowledge base and knowledge sharing, and entrepreneurial efforts were critical for firm survival in addition to age, capacity, ownership, and location.     

Dimensions of proximity in knowledge-based networks: The cases of investment banking and automobile design

The competitiveness of firms and regions is increasingly dependent on their capabilities to organise knowledge processes that unfold between different knowledge providers. In this article it is argued that this knowledge management in networks is a cognitive process that uses different dimensions of proximity. As much of the knowledge required is 'tacit' in character, 'embedded' social interaction becomes crucial. There are, however, conflicts of interest in business networks. The organisation of knowledge processes thus becomes a complex governance task that depends to a large extent on the characteristics of the learning processes of the sectors involved. This paper offers some empirical evidence from the service sector with the case of M&A activities and from the manufacturing sector with the case of automobile design.     

NETWORKS OF IRON: THE ROLE OF BLACKSMITHING IN MEDIEVAL COPENHAGEN

The information which can be extracted from studying craft and production in past societies is by no means limited to technology and exchange. Analysing the chaîne opératoire of iron production in medieval society provides a new perspective and knowledge of its role for urban development. Seen as a complex network of economic, social and material relations, craft and production are embedded in society and have the power to influence it. This article presents and discusses the remains of blacksmithing found at the site of Rådhuspladsen ('City Hall Square') in Copenhagen. The analysis focuses on the scale, types and organisation of the ironworking, as well as identifying the people who may have been involved, including their social and geographical networks. This study aims to better understand the role of iron production for the development of medieval Copenhagen and in general, its role in medieval Danish towns.