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.     

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”.     

Multi-level Science Policy and Regional Innovation: The Case of the Munich Cluster for Pharmaceutical Biotechnology

Knowledge-based industries tend to develop within regional or local clusters that allow for knowledge spillovers, the generation of a critical mass of complementary competencies and skills as for spatial proximity to academic organizations out of which many highly innovative firms have been founded. The prototype of that development certainly is the biotechnology industry which has emerged since the 1970s first in the US where especially small and medium-sized research companies have been established around leading science bases. Following the example of the US biotechnology industry, public policies in many industrialized countries aimed at stimulating cluster formation in biotechnology. This holds true especially for member states of the European Union (EU) where public policy initiatives have been initiated at different territorial levels. This article refers to the Munich pharmaceutical biotechnology cluster and applies institutional and organizational indicators that have been developed in various systemic analyses of technological development and innovation. It will be shown that reforms of the institutional environment in which the innovative organizations are embedded were crucial for the commercialization of biotechnological research in Germany. These reforms have occurred mostly at the regional and national level, whereas the EU played a role especially in establishing the regulatory framework for the biotechnology industry. Organizational indicators will be applied in order to assess the modes of knowledge production within the cluster.     

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.     

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 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.     

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.     

How Regional Innovation Systems Play a Relative Competitive Role Within Knowledge Networks

This study aims to explain how specific regional innovation systems (RISs) play relative important role in the knowledge network within European regions. EC encourages the interactions between regions and develop toward a cohesion balance. The whole Europe can be taken as a knowledge network that consists of different RISs possessing diversified resources. The existences of hierarchical relationships between different regions seem to lead us to explain whether the path toward higher-order position can be done by RISs to shape the regional competence in specific technological fields. We establish the datasets on the basis of patent data (from EPO) and REGIO database. Regional-level dataset, including 129 regions, helps to explore how different RIS develop their technological paths, and whether locational economic factors, technological conditions, and local innovativeness help RISs toward high-order position in the network. In addition, we also explore the role of the interaction of local factors for RISs in developing network position in Europe.     

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).     

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.     

Strategic Considerations for Innovation and Commercialization in the US Biotechnology Sector

This paper examines the importance of alliances as an innovation strategy utilized by US biotechnology firms. In doing so, the role of alliances with universities vis-à-vis alliances with industrial companies is emphasized. The biotechnology sector is dominated by few large and many small firms. The small firms are research focused or technology developers. Several large firms are now integrated biopharmaceutical companies. Very few small firms can survive without strengthening their relationships with universities, biotechnology or pharmaceutical or other large companies. These relationships range from licensing agreements, export–import connections to various forms of alliances for R&D, product development and marketing. Large firms supplement in-house R&D by acquiring research products and/or new technologies from small firms as well as universities. A survey of US biotechnology companies is used to show the emergence of alliance relationships, which continue to highlight university linkages, emphasize connections of biotechnology firms with other biotechnology entrepreneurs, and an ongoing effort to build a synergistic relationship with pharmaceutical or other large companies. Most linkages are not confined to the local area; the main locational attribute is the science base or the labour market.     

The Dynamics of Regional Invention and Innovation: Innovative Capacity and Regional Change in the Twentieth Century

The twentieth century dynamics of United States regional invention trends are explored in this study. Historically, regions that become major loci of invention have always gained much influence, through innovation diffusion, their human capital infrastructures, and their national economic and political projection. The United States has experienced a remarkable inversion of regional roles on invention since the middle of the twentieth century, where the predominant position of heartland regions (the Northeast and the Midwest) is being overturned. This analysis develops a macro-level measure of inventive output, innovative capacity, to evaluate changes in regional inventive performance and the potential for innovation. The analysis of patent age cycles provides insights on the temporal structure of the national and regional innovative capacity, and on the dynamics of crisis periods for U.S. scientific and technological invention. A consideration of regional income trends over the twentieth century and of innovative capacity performance shows the potential importance of endogenously generated inventions for regional development.     

Evaluating European Regional Innovation Strategies

In this paper we analyse the degree of achievement of the Regional Innovation Strategy goals. This is an European Union Commission policy oriented toward the promotion of regional Science, Technology and Innovation (STI) policy design through the involvement of regional stakeholders. We analyse two categories of objectives: those dealing with process participation and those dealing with behavioural change. Our results show that the overall achievement of the goals is meaningful: the former have been achieved in a larger extent than the latter ones. However, other aspects such as multidisciplinary, and the establishment of a monitoring and evaluation system have not been so fruitful.     

Regional Innovation Policy and Innovative Behaviour: Looking for Additional Effects

This paper aims to evaluate the additionality of innovation policy in terms of innovative behaviours at the regional level. Innovative behaviours are identified both within and across firm and regional boundaries. The role of policy is evaluated for a sample of firms in the Italian region of Emilia–Romagna (ER), exploiting an original, survey-based data set. Propensity score matching is applied to investigate the effects of an innovation subsidy. Funded firms are found to be more likely to upgrade their competencies, compared with similar non-subsidized firms. On the other hand, in most cases, innovation cooperation with other business partners within or outside the region is not significantly affected by policy. Ultimately, the investigated innovation policy in the ER region seems to show what might be termed “cognitive capacity additionality”, rather than “network additionality”.     

The Geography of Knowledge Transfer and Innovation in Biotechnology: The Cases of Scotland,Sweden and Denmark1

This paper addresses themes at the heart of policy debates on innovation systems and concentrates on the process of progressive transformation that has been affecting the therapeutic and diagnostic sectors as a result of the application of molecular biology. The focus is on the relationship between firms' locational choices, innovation policy and industrial dynamics. The issue of knowledge transfer is explored and the discussion addresses the theoretical controversy between two contrasting approaches: while some describe open networks and collaboration as means of enhancing competences for learning, others argue that, as intellectual assets are protected by property rights, knowledge adheres to specific locations mainly as a consequence of scientists' immobility. Then it is assessed whether knowledge transfer, in its different forms, is prevalently local or tends to occur on a global scale. Finally, the perceived effectiveness of some policy measures directed to enhance connectivity among players holding complementary knowledges is examined. Countries such as Sweden, Denmark and Scotland, who have pioneered the implementation of cluster thinking in Europe, provides an ideal setting to conduct this empirical study.     

Linking Technology Foresight and Regional Innovation Activities: Network Facilitating Innovation Policy in Lahti Region,Finland

During recent years a growing body of literature has been published on regional innovation systems and regional foresight activities. However, not so much attention has been paid on modelling the connection between these two areas of research. This article proposes a model on how to use results of regional technology foresight in generating practical innovation processes in a region with mainly synthetic knowledge infrastructures. The model draws upon practical experiences from Lahti region, Finland, where the concept of network facilitating innovation policy has been adopted as part of the regional development strategy.     

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.     

The Diurnal Cycle of Regional Commuter Systems: North Wales, 1991

Places of household residence and places of commuter destination are considered in a contiguous system of subareas constituting a region. An intrahousehold distribution of household members, by subarea of their commuting destination, is considered for each subarea of residence. A household composition matrix is constructed in reference to the average number of commuters to subareas of destination, per household at a subarea of residence, across all subareas. The matrix is a linear transformation from the spatial distribution of households onto the spatial distribution of daytime population, over all subareas of the region. Diurnal population change throughout the region is rendered by this transformation. A linear optimization model extending this transformation formalizes general conditions that relate the diurnal population system to household choice of residence and work. Further, the division of the region into subareas is assumed to be such that the average household in each subarea contains at least one person who remains in the subarea during day and night. Under these conditions, the diurnal system is shown to be analogous to the Leontief input‐output model. An example of eleven counties of North Wales, along with an exogenous area of northwestern England, drawn from the 1991 census of the United Kingdom, illustrates the formal relationships.