Regional technology policy and factors shaping local innovation networks in small German cities1

Local innovation networks are considered to be important to innovation and technological change and to growth prospects of regions and cities in Germany. When analysing the local (or regional) innovation system, one should consequently not only investigate horizontal and vertical relations among firms but also the contacts with universities and other research institutions. Furthermore, the role of government agencies and interest groups that provide financial support as well as commercial and technical information should also be taken into account. However, the review of relevant theoretical and empirical investigations related to the German experience shows that such innovation and R&D cooperation networks appear to be less significant than expected. In general various regional technology policy measures adopted in German states (the provision of research infrastructure, establishment of technology centres, innovative small and medium sized enterprises support programmes, etc.) have been more successful in economically better-off large cities than in the rural areas. Apart from offering a critical review of relevant theoretical and empirical research, this study introduces the present regional technology and R&D promotion policies in German states and examines the local innovation systems, taking Landshut as an example.     

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.     

Benefitting from Learning Networks in “Open Innovation”: Spin-off Firms in Contrasting City Regions

R&D and innovation increasingly take place in networks that extend beyond the boundaries of a single firm, with customers in an important role in the learning processes involved. This phenomenon is captured by the term “open innovation”. Advantages of open innovation encompass cost reduction and an increased competitiveness. Spatial innovation theory however indicates that the potential of open innovation is not the same for all urban regions, there may be differences between large metropolitan areas and small cities. In this context, the authors compare university spin-off firms in two contrasting urban regions in Europe, Delft in the Netherlands and Trondheim in Norway (a metropolitan area versus an isolated city) with regard to the profile of their learning networks and the contribution of these networks to growth. Learning networks appear to differ in structure and strength, in spatial configuration and also in the influence on job growth. Thus, networks in Delft (in a large metropolitan area) tend to be stronger compared to those in Trondheim (isolated city), whereas the influence of network strength on growth tends to be negative in Delft but positive in Trondheim. Overall, firms in Trondheim tend to rely more on own resources and capabilities and less on learning networks in open innovation.     

Multinational Knowledge Strategies,Policy and the Upgrading Process of Regions: Revisiting the Automotive Industry in Ostrava and Shanghai

This paper revisits how and why new multinational knowledge-based strategies and multi-level governmental policies influence the upgrading process of regions in developing economies. Automotive multinationals traditionally exploited local asset conditions, but it is shown that they have also been contributing to knowledge-generation systems via investments in R&D centres and cooperation with regional knowledge producers. We discern three elements of the upgrading process of regions—upgrading of domestic firms, subsidiary evolution and establishment of strategic relations with local knowledge institutes—to analyse two case studies: Ostrava (Czech Republic) and Shanghai (China). The cases show that all types of upgrading—product, process, chain and functional—have taken place in the last years, and that follow sourcing may have a positive impact on regional upgrading. These observations provide lessons for governments in developing economies which aim to strengthen innovation-based regional development.     

Context and the role of policies to attract foreign R&D in Europe

This paper explores the effectiveness of policies ‘in’ attracting the foreign research and development (R&D) of multinational enterprises (MNEs) to specific countries in Europe. We develop a macroeconomic investigation covering 29 European countries during the period between 1990 and 2012 in order to address: (a) whether the provision of direct financial support for business R&D is effective for the attraction of foreign R&D; (b) whether direct support is more effective than indirect support for this purpose and (c) whether the link between direct financial support for business R&D and the foreign R&D of MNEs is conditioned by the context within which the support is provided. The results of the analysis show that, first, the provision of direct financial support is generally effective for the attraction of foreign R&D by MNEs. Second, direct support for business R&D is more effective for this purpose than indirect support. Third, the provision of direct financial support for business R&D yields greater returns in contexts that are more socio-economically suitable for knowledge-intensive, innovative activity.     

Determinants of the Uneven Regional Participation of Firms in European Technology Programmes. The 'Low R&D Trap'

Technology is of key importance to the growth of regional firms and economies. Research has shown the association between low technology development or take-up and regional disparities. Hence technology policy is moving closer to the heart of regional policies. European innovation programmes are intended to involve firms, large and small, in international technology research and development networks. The paper focuses on the involvement of Spanish firms in such programmes. Participation tends to be low if business R&D, presence of large firms, and the development of regional innovation systems are also low. Creation of R&D infrastructure through the Structural Funds has now to be prioritized at EU level and also define a new scheme of sectoral priorities in order to support R&D innovation activities in fields diverse from high-tech, if regions are to escape the 'low R&D trap'.     

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.     

Inherited competence and spin-off performance

In this paper we extend the hereditary theory of spin-off formation, developed by Klepper, by relating the concept of inherited competence to two different types of spin-offs—university and private sector spin-offs—and two different types of inherited competence—R&D competence and innovation competence. We then utilize this extension of Klepper's framework to study the evolution of a science-based industry—the biotech industry. Using the Irish biotech industry as a case-study, we find that differences in pre-entry experience manifest themselves most markedly in terms of the firm's capacity to attract venture capital, with private sector spin-offs considerably outperforming university spin-offs. We argue that the superior performance of the private sector spin-offs is explained by the nature of their inherited competence in that they are characterized by higher levels of innovation competence.     

Varieties of Innovation and Welfare Regimes: The Leap from R&D Projects to the Development of City-regions

In the varieties of capitalism, welfare capitalism, and systems of innovation literatures, the university is a critical actor as public employer, trainer and provider of several public goods. However, there is relatively weak enquiry into the spatial and institutional characteristics of university-led economic development and a relative neglect of the political economy and organizational features of embedded R&D projects in urban and regional planning. We argue that technical projects, far from being stand-alone entities, have taken on the broad characteristics of the university and city-regional development mandate in where they reside. The article is based on an exploratory study of university–industry R&D projects in six city regions of Finland. We show that: (a) the shifting role of universities reflects a changed context for the welfare state in which the “public” debate occurs; (b) These create distinct issues of legitimacy and coalition-building in local economic planning which give rise to diverse regional interpretations of single technology programmes; (c) We categorise three general types of models of R&D projects in universities and propose tentative categories of contributions to “public knowledge”. This diversity of interpretations and outcomes leaves us optimistic regarding the ability of city-regions to adapt and plan for the future against a changing welfare state that shapes the university's role, yet more cautious about any clear-cut “public knowledge” emerging from such technical projects.     

Technological Learning and Innovation in China in the Context of Globalization

A team of China- and U.S.-based geographers develops the theoretical concept of "learning field" to advance the study of technological innovation through networking under conditions of ongoing globalization. The concept is applied in a survey of ca. 100 firms in the Zhengzhou Economic and Technological Development Zone, located in a relatively underdeveloped region of China. The findings emphasize the different patterns and challenges confronting companies of differing size, property rights, and R&D capacities, as well as the variable extent to which technological learning is based on local versus global linkages and networking. Key elements involved in successful technological upgrading (in addition to networking) are identified, including market structure, competitive strategies, and capital. Also examined are the roles played by geographic, relational, and institutional factors in providing opportunities for learning and cooperation among firms in an industrial district. Journal of Economic Literature, Classification Numbers: D21, D83, O31, P20. 8 figures, 3 tables, 67 references.     

The challenge of breaking the academia–business firewall in Czechia: comparing the role of differentiated knowledge bases in collaborative R&D projects

Contemporary innovation processes increasingly involve a large number of networked actors, and cross-fertilization between knowledge institutions and firms has thus become a significant driver for innovation. Important insights into the differing nature of research and development (R&D) collaboration in particular sectors have been provided by research inspired by the knowledge-base approach embedded within innovation system (IS) theory. This study aims to contribute to this body of literature by applying the concept of differentiated knowledge bases to the former state-socialist countries, where the IS operates through a firewall between academia and industry. Data on collaborative R&D projects co-financed by public resources have allowed a detailed analysis of the nature of collaboration networks, revealing emerging patterns of academia–industry linkages and questioning the propositions stemming from the knowledge-based approach. The study concludes that collaborative science–industry networks show a very distinct topography when analytical and synthetic knowledge is compared.     

Fostering place-based innovation and internationalization – the new turn in German technology policy

Since the mid-1990s German technology policy has experienced a paradigmatic shift from standard grant schemes towards a region-oriented and competition-based R&D policy. Currently, a new policy experiment, the InterClust contest, is under way, trying to simultaneously foster place-based innovation, R&D internationalization and the internationalization of innovative places. The current paper analyses the new policy, relating it to the recent literatures on heterogeneous firms and on cluster-life cycles, and presents results from a firm survey performed in 21 winner regions of InterClust. Findings show that the new funding scheme takes insights from recent theoretical developments into account and addresses important impediments to firm and cluster internationalization. Although it is too early for an overall assessment, it is argued that the long-term impact will critically depend on the inflow of heterogeneous knowledge and the strength of intra-regional mobilization effects.     

Global Metropolitan-Regional Scale in Evolution: Metropolitan Intermediary Cities and Metropolitan Cities

The case of Madrid is used as empirical focus to propose a new classification of the metropolitan region urban medium-sized or secondary city system. Based on a methodology that integrates the morphological (size, location and socioeconomic history) and the functional dimensions (centrality index, advanced producer services (APS) concentration and commuting), the article compares new employment centres—cities with metropolitan origin—and historical cities—previously free standing cities, progressively integrated in metropolitan processes. The results show a distinction between (1) metropolitan cities, with a traditional intermediation role, and (2) metropolitan intermediary cities, that include an additional quality to their traditional intermediation role, that of concentrating APS. The article confirms that some medium-sized cities—metropolitan intermediary cities—linked to different origins and up to 100?km away from the metropolis are more visible in the global scene and are establishing an emerging global multicore-network at a metropolitan-regional scale.     

Mapping the Geography of R&D: What Can We Learn for Regional Innovation Policy in the Czech Republic and Beyond?

Administrative regions do not necessarily correspond to areas that are homogenous in terms of innovation intensity. Although this has been recognized in the literature, quantitative evidence that explicitly considers this problem is rare. Using spatial exploratory analysis on detailed regional data derived from a census of R&D performers in the Czech Republic, we identify local spatial clusters of R&D activities and assess the extent of their (mis)match with administrative borders. Overall, the results support the arguments for regionalization of innovation policy. However, the existing policy units do not appear well suited for this purpose. On one hand, there is a need for policy coordination between multiple administrative regions. On the other hand, however, there are diverse patterns within them. Similar problems are likely to haunt the regionalization process in many other countries, which is alarming, as the regional accent of innovation policies becomes ever more vehement over time.     

How Do Pre-existing R&D Activities in a Region Influence the Performance of Cluster Initiatives? The Case of French Competitiveness Clusters

This article explores the diversity of 66 French competitiveness clusters, which were all accredited in 2005 according to the same specifications, by characterizing the initial context in which they emerged and taking a close look at the link between this initial context and their current performance. Since French competitiveness cluster policy is based on state co-funding of R&D projects, we establish a typology based on a multiple component analysis and a hierarchical ascending classification of the R&D potential of the cluster's territory, the respective R&D efforts of companies and academic laboratories, the kinds of actors setting up the cluster and their pre-existing relationships. We then measure the differences among the five classes relating to their clusters' capacity to obtain state funding for their projects. Our results show that initial context can partially explain competitiveness clusters' performance. Competitiveness clusters in territories possessing significant R&D resources, and involving large companies capable of organizing projects, are the most efficient in obtaining state funding. In contrast, competitiveness clusters without prior cooperation experience perform poorly.     

Regional Scientific Production and Specialization in Europe: The Role of HERD

This paper analyses the effects of R&D expenditure in the higher education sector on the scientific production across regions in Europe 15. Our research questions relate to the regional production of science and the role of academic R&D expenditures on regional scientific output. The results show that money affects the production of scientific results in regions. On average, we found different impacts and lags of R&D expenditure according to the level of regional development. Our findings also suggest that scientific specialization is a significant factor affecting scientific outputs, although its effects differ across disciplines and regions.     

Absorptive Capacity for R&D: The Identification of Different Firm Profiles

Being competitive requires continuously performing product and process innovations nowadays. Because of this reason, the absorption of externally generated R&D is increasingly important for companies. It is well known that companies differ regarding their aptitude for knowledge absorption. This paper aims at the identification of different firm profiles by means of the identification and valuation of drivers that support the absorption of external R&D. For this, we have carried out an empirical work that is based on a random sample of companies located in the northern Spanish county of Biscay. We identify four company conglomerates according to their attitude to absorb externally generated R&D.     

Managing Long Distance and Localized Learning in the Emilia Romagna Life Science Cluster

The paper provides some empirical evidence of the effectiveness of the “open innovation” model in the life science cluster of Emilia Romagna (a region of Italy), comparing the network of R&D collaborative activities in public research organizations (PROs) and the network linked to R&D collaborative activities in private firms. By presenting the main results of a field research in the life science sector in Emilia Romagna, we are contributing to the recent debate focused on the crises of the old “closed innovation” model and the rise of the “open innovation” model. Our survey consists of both primary data deriving from face-to-face interviews with researchers and entrepreneurs, and secondary data extracted from the Internet, the PubMed database, and from the European Patent Office. Our work is based on the analysis of a representative sample of 30 research groups in PROs, 2173 scientific articles published by the interviewed scientists, and a representative sample of 78 private firms.     

Regional Innovation Policies in the Czech Republic and the Case of Prague: An Emerging Role of a Regional Level?

The aim of the paper is to provide an overview of the development of Czech innovation policy which started to get its shape in the first years of the 21st century. The article traces its origins to a number of interlinked factors—the introduction of European regional policy in the Czech Republic, the increased inflow of foreign direct investment into R&D-intensive sectors and also the devolution of power to Czech regions that were established in 2001 and gave a new, regional dimension to research and innovation policy. It pays particular attention to the process through which the regionally-based innovation policy advocated by the European Union (EU) has been translated and adapted in the context of a new EU member state. As an illustration of the efforts at the regional level to make a better use of the potential of R&D and innovation in the regional development, a case study of a regional innovation strategy of the City of Prague is analysed. The City of Prague was selected for a critical analysis of an innovation system and innovation policy due to the fact that it is a region with significant but until now not fully exploited innovation potential and, in addition, its first innovation strategy has been recently adopted. The innovation strategy is closely scrutinized and the process of its elaboration is critically examined within the European and especially national context. The authors demonstrate that there is a lot of conceptual ambiguity and confusion associated with the process of transferring the experiences of Western European regions to the Czech Republic. The authors believe that at least some of their observations and analysis of weaknesses of the process through which the regional innovation strategy (RIS) has been carried out will have relevance for other Czech regions and even for other regions in the new EU member states.     

International R&D Cooperation between Low-tech SMEs: The Role of Cultural and Geographical Proximity

Although there is a considerable amount of empirical evidence on inter-firm collaborations within technology-based industries, there are only a few works focussing on R&D cooperation by low-tech firms, especially small and medium-sized enterprises (SMEs). Providing further and new evidence based on a recently built database of CRAFT projects, this study analyses the relationship between technology and proximity in international R&D networks using HOMALS and statistical cluster techniques. The resulting typology of international cooperative R&D projects highlights that successful international cooperative R&D projects are both culturally/geographically closer and distant. Moreover, and quite interestingly, geographically distant projects are technologically more advanced whereas those located near each other are essentially low-tech. Such evidence is likely to reflect the tacit-codified knowledge debate boosted recently by the information and communication technology (ICT) “revolution” emphasized by the prophets of the “Death of Distance” and the “End of Geography”.