Knowledge, Innovation and Agglomeration - regionalized multiple indicators and evidence from Brazil

This paper develops multiple indicators to map the geographical distribution of knowledge and scientific and technological capabilities as proxies of the geographical distribution of Science, Technology & Innovation activities, and applies such indicators to data and information from the state of São Paulo, Brazil. The overall view of the geographical distribution of S,T&I activities in the state is complemented by the analysis of the same activities in the perspective of a local production and innovation system: the case of information and communication technologies in the micro-region of Campinas. The results show a pattern for the regional distributions of S,T&I activities along the main highways of the state, around metropolitan areas such as São Paulo and Campinas, and in regions where educational, science and technology, and R&D institutions are strongly concentrated. Firms tend to agglomerate in these areas and regions, forming local production and innovation systems. The paper produces evidence on the adherence of the geographical distribution of those systems to the geographical distribution of S,T&I activities as shown by the indicators. This confirms the empirical findings of the literature about the relationship between geography and innovation.

A new proxy of social capital and the economic performance across the Italian regions

In the last 20 years, social capital, has been evoked in several field of social science research and used to explain a vast range of phenomena: political participation, institution performance, corruption, economic success of countries and so on. Unfortunately, dealing with social capital at a scientific level presents, at least, three main problems. First social capital’s definition is still elusive, especially due to its multi-dimensional nature. Second, it is a particular form of capital related to a very high level of intangibility. Finally, because of lack of suitable data there is neither a universal measurement method, nor a single underlined indicator commonly accepted by the literature. These are some of the reasons for which social capital measures are considered as proxies. By using the density of workers within industrial districts, we have constructed an alternative proxy to those that already exist in the literature in order to empirically analyse the difference, in terms of economic performance, across the Italian regions. The methodology we have applied to derive the index is identical to that one used to construct the Putnam’s instrument. Empirical evidence shows that our measure does not affect macroeconomic indicators such as investment and income per capita. However, it significantly influences unemployment disparities, and the level of innovation

Dynamic Clusters

Globalization has had an enormous impact on traditional industrial structures. It seems almost the case that everything is everywhere the same. And yet, in reality, some regions in a single industrialized country enjoy rapid economic growth while others are downsizing or stagnating. Thus there must be some remaining regional competitive advantages—even in the “Age of Globalization.” This paper engages in a quest to discover what these new “locational” factors might be and how and why they are necessary in creating a dynamic cluster of regional growth. In doing so, we try to link agglomeration advantages of the new economic geography with competitive advantages of Porter’s cluster theory. But we also go beyond these approaches and add further regional growth factors such as creativity or diversity. Using data that paint a comprehensive picture of industry and regional development in Germany we try to find empirical evidence for our approach. A case study from the automobile industry – one of the leading industries in Germany – completes our picture of dynamic clusters.Cluster, Regional Growth, Innovation, Creativity

Innovation, R&D and Productivity in the Costa Rican ICT Sector: A Case Study

This paper addresses the relationships between innovation, research and development (R&D) and productivity in domestic ICT firms in Costa Rica. Factors considered were the types of innovation outputs produced by domestic ICT firms, the relative importance of innovation inputs, the impacts of innovation on firm productivity, the protection of innovations, and impediments to innovation. While most firms engaged in all types of output and input innovations, they appear to be driven by retaining or increasing market share rather than increasing productivity. Half of firms do not formally protect the intellectual property created by their innovations, are not familiar with methods for protecting innovation or the availability of government grants for such purposes, and face barriers associated with the Costa Rican Patent Office. Other impediments include lack of knowledge about financial resources available and scarcity of human resources. There is also evidence of knowledge spillovers through worker mobility from multinationals operating in Costa Rica to domestic ICT firms.Research and development, Information communications technology, Innovation, Costa Rica

Taking services seriously: how policy can stimulate the 'hidden innovation' in the UK’s services economy

Policy could have an important role in stimulating innovation in services. However, policymakers have lacked robust evidence showing how these sectors innovate. Drawing on a survey of more than 16,000 firms, this research reveals the high levels of ‘hidden innovation’ in some services sectors, especially in how they develop new business models and exploit technology. But the research also reveals that innovation is confined to a minority of service firms, and that many lack the skilled personnel or intelligence on markets and technology that would enable them to become more innovative. Because of their dominance in the economy, improved performance by the UK’s services sectors is necessary if we are to significantly close the productivity gap between the UK and other leading nations. However, if we are to take innovation in services seriously, we must recognise that they innovate differently from advanced manufacturing. We need policies to support increased training and development, and the effective dissemination and exploitation of technology

The global knowledge economy in question

Purpose – The aim of this paper is to bring into question the idea of the global knowledge economy. Design/methodology/approach – The paper explores the characteristics of the knowledge economy, as elaborated by academics and policy makers concerned with knowledge in the contemporary global business environment. A range of available data is reviewed concerning the global distribution of investments in knowledge, information and communications technologies (ICTs), international transactions in knowledge-intensive services and royalty and licensing fees, employment by sector and literacy rates. Such data provide a basis for an initial critical evaluation of the notion of the global knowledge economy. Findings – The use of the term “global knowledge economy” fails to acknowledge the uneven distribution of knowledge-based economic activity. Moreover, as currently constituted, the idea of a global knowledge economy, which focuses on knowledge as conceptualised in the commercial activities of advanced countries, overlooks the diversity of knowledges present in the world today. Originality/value – This paper provides the first attempt to question and critically explore the global knowledge economy