Standard-Setting and Knowledge Dynamics in Innovation Clusters

Extensive research has been conducted on how firms and regions take advantage of spatially concentrated assets, and also why history matters to regional specialisation patterns. In brief, it seems that innovation clusters as a distinctive regional entity in international business and the geography of innovation are of increasing importance in STI policy, innovation systems and competitiveness studies. Recently, more and more research has contributed to an evolutionary perspective on collaboration in clusters. Nonetheless, the field of cluster or regional innovation systems remains a multidisciplinary field where the state of the art is determined by the individual perspective (key concepts could, for example, be industrial districts, innovative clusters with reference to OECD, regional knowledge production, milieus & sticky knowledge, regional lock-ins & path dependencies, learning regions or sectoral innovation systems). According to our analysis, the research gap lies in both quantitative, comparative surveys and in-depth concepts of knowledge dynamics and cluster evolution. Therefore this paper emphasises the unchallenged in-depth characteristics of knowledge utilisation within a cluster's collaborative innovation activities. More precisely, it deals with knowledge dynamics in terms of matching different agents´ knowledge stocks via knowledge flows, common technology specification (standard-setting), and knowledge spillovers. The means of open innovation and system boundaries for spatially concentrated agents in terms of knowledge opportunities and the capabilities of each agent await clarification. Therefore, our study conceptualises the interplay between firm- and cluster-level activities and externalities for knowledge accumulation but also for the specification of technology. It remains particularly unclear how, why and by whom knowledge is aligned and ascribed to a specific sectoral innovation system. Empirically, this study contributes with several descriptive calculations of indices, e.g. knowledge stocks, GINI coefficients, Herfindahl indices, and Revealed Patent Advantage (RPA), which clearly underline a high spatial concentration of both mechanical engineering and biotechnology within a European NUTS2 sample for the last two decades. Conceptually, our paper matches the geography of innovation literature, innovation system theory, and new ideas related to the economics of standards. Therefore, it sheds light on the interplay between knowledge flows and externalities of cluster-specific populations and the agents' use of such knowledge, which is concentrated in space. We find that knowledge creation and standard-setting are cross-fertilising each other: although the spatial concentration of assets and high-skilled labour provides new opportunities to the firm, each firm's knowledge stocks need to be contextualised. The context in terms of 'use case' and 'knowledge biography' makes technologies (as represented in knowledge stocks) available for collaboration, but also clarifies relevance and ownership, in particular intellectual property concerns. Owing to this approach we propose a conceptualisation which contains both areas with inter- and intra-cluster focus. This proposal additionally concludes that spatial and technological proximity benefits standard-setting in high-tech and low-tech industries in very different ways. More precisely, the versatile tension between knowledge stocks, their evolution, and technical specification & implementation requires the conceptualisation and analysis of a non-linear process of standard-setting. Particularly, the use case of technologies is essential. Related to this approach, clusters strongly support the establishment of technology use cases in embryonic high-tech industries. Low-tech industries in contrast rather depend on approved knowledge stocks, whose dynamics provide better and fast accessible knowledge inputs within low-tech clusters.innovation clusters, standard-setting, knowledge externalities and flows, knowledge alignment, mechanical engineering, biotechnology

The countryside in urbanized Flanders: towards a flexible definition for a dynamic policy

The countryside, the rural area, the open space, … many definitions are used for rural Flanders. Everyone makes its own interpretation of the countryside, considering it as a place for living, working or recreating. The countryside is more than just a geographical area: it is an aggregate of physical, social, economic and cultural functions, strongly interrelated with each other. According to international and European definitions of rural areas there would be almost no rural area in Flanders. These international definitions are all developed to be used for analysis and policy within their specific context. They are not really applicable to Flanders because of the historical specificity of its spatial structure. Flanders is characterized by a giant urbanization pressure on its countryside while internationally rural depopulation is a point of interest. To date, for every single rural policy initiative – like the implementation of the European Rural Development Policy – Flanders used a specifically adapted definition, based on existing data or previously made delineations. To overcome this oversupply of definitions and delineations, the Flemish government funded a research project to obtain a clear and flexible definition of the Flemish countryside and a dynamic method to support Flemish rural policy aims. First, an analysis of the currently used definitions of the countryside in Flanders was made. It is clear that, depending on the perspective or the policy context, another definition of the countryside comes into view. The comparative study showed that, according to the used criteria, the area percentage of Flanders that is rural, varies between 9 and 93 per cent. Second, dynamic sets of criteria were developed, facilitating a flexible definition of the countryside, according to the policy aims concerned. This research part was focused on 6 policy themes, like ‘construction, maintenance and management of local (transport) infrastructures’ and ‘provision of (minimum) services (education, culture, health care, …)’. For each theme a dynamic set of criteria or indicators was constructed. These indicators make it possible to show where a policy theme manifests itself and/or where policy interventions are possible or needed. In this way every set of criteria makes up a new definition of rural Flanders. This method is dynamic; new data or insights can easily be incorporated and new criteria sets can be developed if other policy aims come into view. The developed method can contribute to a more region-oriented and theme-specific rural policy and funding mechanism

Roads as Channel of Centrifugal Policy Transfer. Spatial Interactions Model Revised

This paper proposes a methodology to measure spatial effects of roads and local authorities’ seats in a diffusion of business activity, which usually follows the distance decay patterns, from core to periphery. Regional development policy, pursued by regional authorities, directed to local units and designed to support local economies is implemented as a centrifugal diffusion process. This invisible flow of policy will be modeled with one-way spatial interaction model represented by multinomial distance-decay function on the integrated spatial dataset.

European Regional Science: Between Economy of Culture and Economy of Catastrophes (Review of the ERSA 2005 Amsterdam Congress Reports)

ERSA Congress can be seen as laboratory of ideas with broad representation not only European, but also scientists from US, Japan, Korea, Brazil, African and Asian countries. With very high speed new thoughts and phenomena from the European regional scientific community appear on the stages of the ERSA annual Congresses. Three new features were characteristic for the 2005 ERSA Congress in comparison with the previous ones. First, special focus on the factors of density in the regional development. That was not surprising as the meeting was held in the city of Amsterdam with the highest density in Europe where land and space are scarce goods. Second, integrative tendencies in attempt to use natural factors to explain traditional phenomena of the regional science. Issues of land and water management coincide with economic growth and regional development in many reports. Third, for the first time theme of networks and network society was embedded in many sections of the Congress and in the very title of the Congress itself. All these aspects as participants demonstrated could be positive creative factors increasing cultural assets of the European regions, efficiency of the knowledge transfer, leisure activities; or negative as the source of disaster and risk for human beings. Density factors (lack of people or lack of space?) divide European regional science into two sciences – urban for the populated regions and regional for the territories scarcely populated with very different themes, methods and tools of research. Housing markets, urban sprawl and commuting patterns are popular topics in the first case; labour markets and human capital in the second case. New Economic Geography models work smoothly in the first regions but are inappropriate in the second. Competition is harder in the labour markets of the populated regions but is softer in the regions with scattered population where it is substituted by the forces of cooperation. Contemporary regional society can be sustainable only as network society. In the reports networks were examined on different levels: a) as transportation networks in the investment national or interregional projects; b) as policentricity urban structures replacing Cristaller’s hierarchy of central places; c) as public-public, public-private partnerships combining public and private stakeholders in the decision-making process. Transition of the European regions from the industrial to network/service has begun 25 years ago. Position of the concrete region on this route determines clearly the type and intensity of its problem and research agenda. The more advanced is the region or nation on this route the more often terms like “reinventâ€, “rethinkâ€, “revisited†are used in the scientific community. Rediscovery of the old concepts, definitions, essence (as Amsterdam Congress demonstrated) is very creative and challenging process of the post-industrial regional science.

The geographical processes behind innovation: a Europe-United States comparative analysis

The United States and European Union differ significantly in terms of their innovative capacity: the former have been able to gain and maintain world leadership in innovation and technology while the latter continues to lag. Notwithstanding the magnitude of this innovation gap and the political emphasis placed upon it on both sides of the Atlantic, very little systematic comparative analysis has been carried out on its causes. The empirical literature has emphasised the structural differences between the two continents in the quantity and quality of the major ‘inputs’ to innovation: R&D investments and human capital. The very different spatial organisation of innovative activities in the EU and the US – as suggested by a variety of contributions in the field of economic geography – could also influence innovative output. This paper analyses and compares a wide set of territorial processes that influence innovation in Europe and the United States. The higher mobility of capital, population, and knowledge in the US not only promotes the agglomeration of research activity in specific areas of the country but also enables a variety of territorial mechanisms to fully exploit local innovative activities and (informational) synergies. In the European Union, in contrast, imperfect market integration, and institutional and cultural barriers across the continent prevent innovative agents from maximising the benefits from external economies and localised interactions, but compensatory forms of geographical process may be emerging in concert with further European integration.Innovation, Research and development, Regions, Spillovers, Agglomeration, Systems of innovation, European Union, United States

Spatial interactions in agent-based modeling

Agent Based Modeling (ABM) has become a widespread approach to model complex interactions. In this chapter after briefly summarizing some features of ABM the different approaches in modeling spatial interactions are discussed. It is stressed that agents can interact either indirectly through a shared environment and/or directly with each other. In such an approach, higher-order variables such as commodity prices, population dynamics or even institutions, are not exogenously specified but instead are seen as the results of interactions. It is highlighted in the chapter that the understanding of patterns emerging from such spatial interaction between agents is a key problem as much as their description through analytical or simulation means. The chapter reviews different approaches for modeling agents' behavior, taking into account either explicit spatial (lattice based) structures or networks. Some emphasis is placed on recent ABM as applied to the description of the dynamics of the geographical distribution of economic activities, - out of equilibrium. The Eurace@Unibi Model, an agent-based macroeconomic model with spatial structure, is used to illustrate the potential of such an approach for spatial policy analysis.Comment: 26 pages, 5 figures, 105 references; a chapter prepared for the book "Complexity and Geographical Economics - Topics and Tools", P. Commendatore, S.S. Kayam and I. Kubin, Eds. (Springer, in press, 2014

The geographical processes behind innovation: A Europe-United States comparative analysis

The United States and European Union differ significantly in terms of their innovative capacity: the former have been able to gain and maintain world leadership in innovation and technology while the latter continues to lag. Notwithstanding the magnitude of this innovation gap and the political emphasis placed upon it on both sides of the Atlantic, very little systematic comparative analysis has been carried out on its causes. The empirical literature has emphasised the structural differences between the two continents in the quantity and quality of the major 'inputs' to innovation: R&D investments and human capital. The very different spatial organisation of innovative activities in the EU and the US – as suggested by a variety of contributions in the field of economic geography – could also influence innovative output. This paper analyses and compares a wide set of territorial processes that influence innovation in Europe and the United States. The higher mobility of capital, population, and knowledge in the US not only promotes the agglomeration of research activity in specific areas of the country but also enables a variety of territorial mechanisms to fully exploit local innovative activities and (informational) synergies. In the European Union, in contrast, imperfect market integration, and institutional and cultural barriers across the continent prevent innovative agents from maximising the benefits from external economies and localised interactions, but compensatory forms of geographical process may be emerging in concert with further European integration.

R&D cooperation versus R&D subcontracting: empirical evidence from French survey data.

This paper uses a survey of French firms active in R&D to identify the determinants of R&D outsourcing and of the ensuing trade-off between R&D subcontracting and R&D cooperation. Internal R&D expenditures increase both the probability of outsourcing and the number of R&D partners. Investment in fundamental R&D, group belonging, and the sector’s high R&D intensity positively influences the probability of R&D outsourcing but have less impact on the number of partners. R&D subcontracting is more likely than R&D cooperation when the relationship deals with generic, standardized R&D processes, as reflected in the influence of several qualitative proxies.R&D cooperation, R&D subcontracting, organizational choices.

Does Network Matter in International Expansion? Evidence from Italian SMEs

In order to face the new competitive scenario, Apulian textile firms are involved in a process of change and are trying to adopt a networking approach in analysing the international propensity of SMEs. The case of the textile network in Apulia has been analysed using a semi-structured questionnaire submitted to a sample of family businesses in order to verify the influence of network on their internationalisation process. The contribution that the network can give to the single firm in its internationalisation process depends also on the level of cooperation in the network. In fact, relationships – at least dual vertical relationships – are the key to overcoming size limit and providing value to all the partners involved. The research attempted to offer a better academic understanding of the role of network in international competitive advantage. Future research should be based on cross countries analysis, in order to determine whether or not the set of internal determinants of internationalisation pensity remain stable from one country to another. The findings should also be useful to local governance for a better understanding of the network phenomenon in order to develop appropriate programmes for training and supporting SMEs in the global market. This paper provides a wide analysis of the network role in the internationalisation process in a low technology sector.Internationalisation Strategies, Network Approach

European Regions Financing Public e-Services: the Case of EU Structural Funds.

EU Structural Funds represent by far the main source of funding for innovation in general and for eservices in particular in the lagging regions of Europe classified into the “Convergence” objective. The paper explores the amount of resources dedicated to public e-Services and Information Society by elaborating European Commission data on programmed resources for the 2007-13 period. Moreover, the paper represents the first attempt to use a quantitative approach – i.e. a principal component analysis and a cluster analysis – in order to identify the different strategies adopted by European Regions for Information Society development. The results shows that in the “Convergence” Regions, a specific “public e-services strategy” emerges. Regions investing in public e-services tend to concentrate available resources to e-government or e-health, while very low percentage of total funding is dedicated to the other categories such as broadband or infrastructural services.Information society, regional policy, Cohesion Policy, Structural Funds, e-Services, e-Government, Cluster analysis.