R&D Cooperation in Innovation Systems—Some Lessons from the European Regional Innovation Survey (ERIS)

Our paper summarizes some of the main results of the European Regional Innovation Survey (ERIS) as far as they are discussed in this special issue of European Planning Studies . The overall target of the ERIS project is a quantitative and qualitative assessment of determinants crucial for the innovation potential of any region, i.e. innovative and non-innovative manufacturing firms, business services and research institutions, as well as the innovative linkages and networks between these actors. Empirical research is based upon almost 8600 questionnaires collected in 11 European regions. Results confirm some of the common hypotheses on the relationship between space and innovation networks but others are contrary to existing scientific knowledge. Obviously the impact of national innovation systems on the innovation activities of manufacturing firms in a given European region is-at least-as strong as the impact of the respective regional innovation system. The spatial range of innovative linkages significantly depends on the size, the type of the cooperation partner, the R&D intensity and the industry of the analysed manufacturing firm. For example, the higher the technology intensity of the industry, the greater is the need of each firm to use intraregional knowledge via innovation linkages. It is therefore an important task in regional innovation policy to promote network-building among firms and other actors of a regional innovation system and to interlink these intraregional networks with national and international knowledge sources.     

External Leveraging and Technological Upgrading Among East Asian Firms in the US

This paper examines the innovation strategies driving Asian firms' investment in the US based on the resource-based model of knowledge. Specifically, it is shown that Asian firms' competitive advantage revolves around their ability to capture rents through a series of technological and marketing capabilities that collectively constitute the firms' knowledge resource base. The process of learning is documented by shedding light on the major sources of knowledge acquisition that enhance technological capabilities internally and externally. Specifically, this empirical research, based on a large-scale quantitative survey of Taiwanese, South Korean, and Singaporean firms in the US that was conducted between 2003 and 2004, shows that the firms in industrializing Asian economies (henceforth the IAFs) are directly investing in the US and setting up R&D operations there to acquire knowledge that enables them to become more innovative. A variety of technology sourcing strategies practiced among these IAFs was found, depending on their firm-specific variables (e.g. size and sector) and their prior technological capabilities. The types of technology and knowledge sources also go beyond conventional technological know-how to embrace the entire production chain from manufacturing technologies to expertise in marketing and distribution.     

Beyond ‘related variety’: how inflows of skills shape innovativeness in different industries

ABSTRACT

Building on recent evolutionary thinking, this paper focuses on inter-industry differences in the receptiveness of firms to inflows of skills from different domains of the external economy. The empirical analysis of innovation performance finds that firms’ dependences on recruiting outside their own industry domains were inversely related to the vibrancy of knowledge dynamics within them. Moreover, inflow distances that are ‘optimal’ from the perspective of learning are closer to manufacturing firms’ own industry domains, than they are to the domains of services firms. As a result, only low-tech manufacturing and technology-intensive services firms exhibit the receptiveness to inflows from ‘related’ industries found in prior evolutionary research. Firms in high-tech manufacturing, by contrast, capture strong learning benefits from intra-sectoral mobility flows, whereas firms in traditional professional services depend on skills developed outside their own industry domains. Implications for the theory, empirics and policy relevance of evolutionary economic geography are discussed.     

The Role of Knowledge Intermediaries in Developing Firm Learning Capabilities

Regional innovation systems (RISs) literature has emphasized the critical role of interactive learning and knowledge exchange amongst firms and a variety of spatially connected innovation institutions as the foundation of regional innovation. Knowledge intermediaries have been analysed in terms of the technology-transaction services they provide firms and/or knowledge producers such as universities and therefore the role they play in facilitating interaction within the RIS. However, innovation also depends on the capability of the firm to learn. Some studies have suggested that intermediaries also play a role in that regard as participation in intermediary knowledge transfer programmes can contribute to the development of firm capabilities for problem-solving and learning. Our research is based on two case study intermediary programmes involving interviews with facilitators and participants. Our data show that knowledge intermediaries affect organizational learning capabilities by impacting on firms' network relationships, internal and external communication channels and internal learning processes which in turn affect the ability to interpret and use knowledge within the firm. This suggests that the role of knowledge intermediaries might be greater than facilitating interactions in the innovation system, as knowledge intermediation may affect the ability of firms to learn and absorb knowledge from their environment.     

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.     

INTERREGIONAL KNOWLEDGE SPILLOVERS AND OCCUPATIONAL CHOICE IN A MODEL OF FREE TRADE AND ENDOGENOUS GROWTH*

ABSTRACT A two region model of horizontal innovation with free trade and occupational choice is used to examine the spatial patterns of innovation and manufacturing industry in interior and core‐periphery long‐run equilibria. The inclusion of skill heterogeneity among workers creates a tension between stabilizing productivity effects that coincide with reallocations of workers across industries, and destabilizing productivity effects that arise with localized stocks of knowledge capital. We find that while core‐periphery equilibria are always saddlepath stable, interior equilibria are saddlepath stable when knowledge spillovers exceed a threshold level but are unstable otherwise. In addition, incorporating skill heterogeneity into the model allows for interior equilibria with asymmetric shares for innovation and industry.     

Geography of Knowledge-based Collaboration in a Post-communist Country: Specific Experience or Generalized Pattern?

This article addresses the role of geographical proximity for knowledge and innovation collaboration patterns in the Czech Republic and assesses the factors which determine the spatial distribution of innovation co-operation. The article uses alternative sources of empirical data to map collaboration patterns of innovating companies, research institutes and universities and to find basic regularities. By this, the article aims to fill in the gap in current research focused rather on most advanced regions by adding new knowledge from a transformation, post-communist economy. Also, it aims to shed light on the issue of the role of proximity between actors involved in collaboration in the sphere of knowledge and innovation creation which still remains rather elusive. The findings indicate that even though co-location and intra-regional knowledge and innovation collaboration exist, it cannot be regarded as a decisive characteristic. Geographical proximity is not a crucial condition in knowledge and innovation collaboration as all actors are involved to an important degree in international linkages. Yet, the role of the specific institutional context and factors at micro-level influence the innovation co-operation pattern.     

Networking and learning for tourism innovation: evidence from the Western Cape

ABSTRACT

This paper examines the nature of networking and learning by tourism firms in relation to accessing knowledge for innovation. In particular, the nature of tourism learning and networking, geography of networking linkages, and systemic characteristics of relationships between tourism firms, government agencies, higher education institutions, and other organisations in the Western Cape tourism system are examined. The analysis draws on 182 tourism firm, tourism system, and contextual interviews. This investigation demonstrates that even though tourism firms mostly use internal resources for innovation, external, non-local knowledge is significant for enhancing novel innovation. It is disclosed that whilst local network linkages are dense, loose, and of importance for business and marketing purposes, extra-regional network relationships are imperative for learning in relation to innovation. As further observed, network linkages between local and regional actors for supporting tourism innovation in the Western Cape are generally weak which points to the underdevelopment of local and regional innovation networks or systems. The paper provides planning recommendations for enhancing the competitiveness of tourism firms towards fostering development and growth in the regional tourism economy. Specifically, support for stimulating learning networks as well as strengthening systemic relationships in the Western Cape tourism system are recommended. It is underscored that strategic relationships with non-local partners need to be nurtured towards fostering tourism innovation and enhancing regional competitiveness.     

Regional Advantage of Cluster Development: A Case Study of the San Diego Biotechnology Cluster

The concept of “clusters” has become central to regional economic development strategies, especially in the high-technology and biotechnology industries. Numerous studies have examined the significance of industrial clusters and their components, but comparatively less attention has been directed towards understanding the roots and processes of industrial localization. In particular, emerging biotechnology clusters such as that in San Diego have not drawn adequate scholarly attention given their policy implications with regard to clustering and regional development. Based on in-depth interviews, historical archives and participatory observations, this paper examines how the San Diego biotechnology cluster emerged and grew into an entrepreneurial habitat that has nurtured hundreds of biotechnology companies that have produced a series of innovative products. The author suggests that the regional context of the existence of a number of small biotechnology companies rather than a group of large firms, a continuous flow of talent, and leadership that fosters collaborations have been critical in promoting knowledge creation, circulation and accumulation, which are essential to spawning startups. The regional advantage of San Diego in stimulating entrepreneurship and innovation lies in its edge in creating and exploiting knowledge and practices through its entrepreneurs' robust interactions and participation in local communities of practice.     

EVERYWHERE? THE GEOGRAPHY OF KNOWLEDGE*

ABSTRACT This paper reviews what we know about the spatial manifestations of knowledge. The knowledge production function addresses the easily measured portion of knowledge produced. Research on learning, particularly interactive and collective learning, in firms and in innovation systems, promises to unveil the human and organizational processes by which knowledge is created, stored, and transmitted to others. Our understanding of innovation and technological change depends on how well we tackle knowledge and its geography.     

Spatial and Sectoral Characteristics of Relational Capital in Innovation Activity

The paper presents prima facie evidence of the role of relational capital in innovation activities, and underlines the spatial and sectoral difference of the effects of relational capital on innovation processes. Relational cpaital is defined in this paper as the stock of relations that a firm can entertain with other firms, institutions, research centres, measured through the intensity of cooperation among local actors. The paper is structured in two parts. In the first part, a review on the literature is presented, and the similarities and differences between the concept of relational capital and the more common concept of knowledge spillovers is underlined. In the second part, the empirical results of the analysis are presented; the empirical analysis is based on a database of 133 firms' observations, located in different geographical areas. With a quantitative approach, the paper replies to the following key questions: Is relational capital a determinant for innovation activities? If it is so, does it have the same role in urban and non-urban areas? Does it have a different role in specialized and despecialized areas? The empirical results to these questions help in understanding whether it is true that competitive city regions in the global economy are the major locations for relatively exclusive knowledge and learning resources. The paper shows that if relational capital plays a role in innovation activities, it may very well be that its role strongly depends on the sectoral as well as the spatial characteristics in which the innovation process takes place. Non-urban areas characterized by strong local synergies and highly specialized activities may even be more facilitated in their inovation activity.     

Characteristics of Collaboration in Product Innovation in the Regional System of Innovation of East Gothia

The focus of this article is on product innovations introduced by firms (establishments) and the collaborations they enter into with other firms and organizations in carrying out this activity. The theoretical framework combines innovation theories with the literature on regional innovation systems and the knowledge-based economy. Empirically we have investigated characteristics of collaboration among manufacturing establishments in the region of East Gothia in Sweden, with specific focus on the number of employees involved in the innovation projects, mechanisms of knowledge transfer between organizations, as well as financing and patenting in relation to product innovations.     

With or Without Clusters: Facilitating Innovation through a Differentiated and Combined Network Approach

Over the past decades, economic and innovation policy across Europe moved in the direction of creating regional clusters of related firms and institutions. Creating clusters through public policy is risky, complex and costly, however. Moreover, it is not necessary to rely on clusters to stimulate innovation. A differentiated and combined network approach to enhancing innovation and stimulating economic growth may be more efficient and effective, especially though not exclusively in regions lacking clusters. The challenge of such a policy is to mitigate the bottlenecks associated with “global pipeline”, “local buzz” and “stand alone” strategies used by innovative firms and to combine these strategies with a view to their complementarity in terms of knowledge effects. Private and semi-public brokers will be key in the evolving policy, as timely organizational change is crucial for continued innovation, while brokers also need to mitigate governance problems. This requires region-specific knowledge in terms of sectors, life cycles, institutional and socio-cultural factors, and yields spatially differentiated and differentiating adjustment strategies. The role of public policy is to assist in recruiting, provide start-up funding and monitor brokers. With this, policy moves towards a decentralized, process-based, region-specific, spatially diverging and multi-level system of innovation that is geared towards the evolving innovation strategies of firms.     

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.     

The Role of Interactive Learning to Close the “Innovation Gap” in SME-Based Local Economies: A Furniture Cluster in the Basque Country and its Key Policy Implications

This paper identifies an “innovation gap” in the (in)efficient relation between innovation structures and production systems in SME-based economies and, by elucidating an implicit aspect of key theoretical contributions from Lundvall and Cooke, among others, sets the basis for a policy focus that may help reducing those margins of inefficiency. In this work, we identify three interdependent drivers of innovation: the “critical mass” of firms in a specific geographical location; the formation of “organizations” devoted to the creation and diffusion of knowledge and innovations; the ignition of “learning processes” within the production system that help catalyse significant innovations within the local economy. We suggest that the importance of processes of codified knowledge flows needs to be complemented by interactive flows of tacit knowledge that help overcoming the “innovation gap” that often exists between firms and knowledge institutions. Since this gap represents the inefficiency of the innovation structures, we suggest that it should be targeted by policy-makers and business associations as a central issue for innovation promotion through actions that intensify interactions and learning processes through bottom-up initiatives. These elements are analysed in a furniture cluster in the Basque Country and are highlighted on the basis of successful micro-territorial experiences.     

Advisory Professorship Model as a Tool for Practice-Based Regional University–Industry Cooperation

The growing importance of “practice-based innovation models” has challenged the current consensus on the role of universities as main drivers of regional innovation systems. New models are needed to ensure the efficiency of co-operation between the region and universities. In this article, we present and analyse the effects of one practice-based innovation tool, the advisory professorship model, developed in the Lahti region, Finland. The Lahti region is relatively big by Finnish standards, but has no university of its own, which makes new types of knowledge transfer necessary. The empirical analysis is based on interviews of the companies that participated in the materials technology advisory professorship programme, developed and operated by Tampere University of Technology. In the analysis, we utilize the conceptual framework and analytical matrix developed by Tura et al. [(2008) Breaking inside the black box: Towards a dynamic evaluation framework of regional innovative capability, Science and Public Policy, 35(10), pp. 733–744] in the measuring of regional innovation capability. The study approach is based on regional and industrial viewpoints. In the light of the study, the programme had positive impacts on the innovation capability and innovation processes of companies. The advisory professorship model can be considered a useful practice-based innovation tool for regional university–industry co-operation with some limitations.     

Public Policy and Emerging Sources of Technology and Technical Information Available to Industry

As technologies grow in complexity, firms often target their internal R&D resources on core competencies and utilize outside sources for supporting knowledge and technology. Where do firms turn to find such resources? This paper reports the perceptions of technology transfer managers in United States manufacturing firms toward federal and university labs and identifies the types of farms that are better positioned to utilize externally available technological resources. Based on replies from research-intensive companies within the United States, the authors find that larger firms with high research and development (R&D) budgets tend to ascribe greater significance to external sources than do smaller ones. Also, companies spending over $500 million in R&D rank universities the most significant external source of knowledge, followed by V S.-based firms, and then foreign firms.     

非正式因素影响下的中小企业网络学习与区域发展——河南省偃师市翟镇针织业的研究

本文采用理论论述与实际调研分析相结合的研究方法,通过对位于河南省偃师市的"针织之乡"--翟镇的本地针织业网络的实地研究,着重从我国特殊的历史文化背景出发,深入探讨了中小企业的网络学习过程。笔者指出在翟镇针织业本地网络中的、受传统历史文化影响的、诸如面对面交流、接触这些非正式联系是学习的主要通道。通过网络中行为主体间积极的互动,知识不断的循环流转,最终实现了创新,构筑了区域不可低挡的竞争优势。这对我国其它地区传统产业区的发展具有一定的借鉴意义。     

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.     

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.