Competencies of firms, external knowledge sourcing and types of innovation in regions of Europe

Many innovation studies have been focusing on a narrow concept of innovation such as the generation of patents or new products. The performance of companies, however, often depends on innovation defined from a broader perspective. This includes process, organisational and market innovations as was pointed out already by Schumpeter. Drawing on the concept of knowledge bases and innovation networks we argue that these different types of innovation require both internal competencies, and technological and market knowledge from various kinds of external sources. These can be located at regional, national and international levels. In the present paper we are going to analyse evidence from eight European countries in this respect. Based on a multivariate model we are able to show that product, process and organisational innovations indeed rely on quite different types and sources of knowledge, and that in addition also the institutional characteristics of regions and countries matter.

Does combinatorial knowledge lead to a better innovation performance of firms?

The knowledge base concept in the past has often been applied in its "pure" form, i.e. it was assumed that there are dominant knowledge bases in particular sectors and firms, that shape the knowledge- and innovation process and related networks. For example, it has been argued that in the case of "analytical sectors" such as biotech codified knowledge generated by universities and R&D organisations are key for radical innovation, and that such knowledge is often transmitted by formal R&D cooperations and university-firm links. "Synthetic sectors" such as machinery on the other hand were assumed to innovate more incrementally by recombining existing knowledge that was often drawn from suppliers or service firms. Empirical literature partly has confirmed these basic patters, but also has demonstrated that more complex knowledge processes are underlying these overly schematic expectations. In addition, there have been arguments by Asheim, Boschma and Strambach, among others, more recently that combinations of different but related knowledge bases and -assets might be of high relevance for understanding innovation processes of firms in particular sectors and regions. This implies that innovation of firms e.g. in "analytical sectors" might benefit not just from new and basic knowledge generated by research, but also from recombining existing and applied knowledge or by drawing on symbolic knowledge assets. The same argument for the relevance of combinatorial knowledge bases applies for "synthetic" and "symbolic sectors", but in different forms. The paper investigages if the reliance on combinatorial knowledge bases leads to a better innovation performance and more radical forms of innovation than the use of more narrow knowledge assets. The paper investigates the relevance of combinatorial knowledge bases for innovation at first conceptually and based on respective literature. In the second part we analyse this question empirically by drawing on findings for the ICT sector in three regions of Austria (Vienna, Upper Austria, and Salzburg). (authors' abstract)Series: SRE - Discussion Paper

Technological Competencies and Firm Performance: Analyzing the Importance of Internal and External Competencies

In this paper, we analyze the relationship between technological competencies (TC) and firm performance. Theoretically, the importance of TC is well established and widely accepted. Therefore, it is surprising that a number of empirical studies have been unable to confirm a substantial positive relationship between TC and firm performance. We identify two major reasons for this: [i] affected by the availability and choice of indicators existing studies are often biased towards large firms; and [ii] they frequently do not consider both internal and potential access to firm-external TC. This paper discusses conceptually the interplay between firm-internal and firm-external TC as well as the mediating effect of firm size. These relationships are then analyzed empirically using Swedish micro data on 15,682 firms in 290 Swedish municipalities. Novel indicators based on occupational statistics are combined with measures of time-distance accessibility to study internal and external TC. The results provide evidence for a positive relationship between firm growth and TC. In particular, the combination of firm-internal and firm-external competencies seems to be conducive for growth. Lastly, our study suggests that firm size is an important factor to further our understanding about these relationships. Based on this we identify a number of future research questions to be addressed

Towards regenerative regional development in responsible value chains: an agentic response to recent crises

In this paper, we empirically and theoretically present regenerative regional development in responsible value chains as an alternative to the prevailing traditional, neoliberal economic rationale of globalization. We develop the argument on the back of a longitudinal in-depth case study on actors’ engagement in the recurring crises in the maritime industry in Sunnmøre/Norway. The alternative perspective is an agentic response from the business community in the wake of recent crises. It builds on advanced manufacturing capabilities, automation and precision technologies, which promise local economic regeneration while reducing the reliance on low-cost labour, substantially cuts emissions through reduced long-haul transport, use of green energy and more energy-efficient production processes. To succeed, however, it calls for policies that promote the building of local capabilities and penalize practices causing environmental and social harm in global value chains, making it possible to move towards responsible and shorter value chains.publishedVersio

When drivers of clusters shift scale from local towards global: What remains for regional innovation policy? PEGIS, Papers in Economic Geography and Innovation Studies

Industries and regional economies evolve as a result of the interplay between local and non-local factors. Increasing globalization of both production- and innovation activities implies a shift in the relevant scales of interaction from the local towards the global level. This paper is concerned with the implications of such scale shifts for the role of the region and for cluster-related regional policies. It examines what is left of the role of regional settings in fostering economic development when extra-regional drivers of change increase in importance. We investigate this crucial question with two in-depth case studies of the medical technologies sector, in which such scale shifts have been particularly pronounced. Our findings from empirical material collected in Scania/Sweden and Vienna/Austria illustrate the ways in which changes in national and supra-national regulatory frameworks have had a profound impact on the innovation activities of individual firms and the way to develop and launch new products, and subsequently on the regions in which they cluster. Such scale-shifts have on the one hand limited the potential for regional policy to shape the cluster's path through support for supply-side factors. Yet some critical assets remain local but are increasingly difficult to access. By addressing such barriers to access, regional policy can still strongly affect the opportunities for innovation. Furthermore, in an increasingly open industry system, we see an expanded role for regional policy in supporting firms to access critical assets and sources of innovation found external to the region

Temporality of agency in regional development

The temporality of agency plays a fundamental role in regional development but has received little attention in economic geography and regional studies. This paper zooms in on two aspects of temporality: the temporality of intentions and the temporality of consequences. The former refers to actors’ perception and valuation of opportunities in the near and distant future, whereas the latter refers to the short- and long-term consequences of actions. This paper studies the temporality of agency in the context of regional development. It investigates how short- and long-term intentions motivate different types of agency, how different types of agency affect short- and long-term regional development outcomes and which conditions enable or constrain different types of agency. We illustrate our arguments with an in-depth case study covering the regional development of a labour market in Norway over the last 20 years.publishedVersio

Trinity of change agency, regional development paths and opportunity spaces

The study of regional growth paths is a key theme in economic geography and of elemental interest for regional development. This paper addresses the interplay between path-dependent, structural forces and the construction and utilization of opportunities through agentic processes. Extending the evolutionary framework, it is argued that not only history but also perceived futures influence agentic processes in the present and thus shape regional development paths. The paper discusses the relevance and interdependencies of three types of agency with distinct theoretical roots, namely Schumpeterian innovative entrepreneurship, institutional entrepreneurship and place-based leadership, as main drivers of regional structural change.publishedVersionPeer reviewe

Assessing change agency in urban experiments for sustainability transitions

Experimentation has become one of the prevailing modes of governing the transition toward sustainable practices in urban environments. The spatial variation of urban sustainability transition has been attributed to a variety of conditions erected at different spatial scales. What remains less well-understood is how spatial situatedness shapes agency in urban experiments and the shapes agency can take is a field that requires further research and frameworks. The paper addresses this gap by introducing a framework from the literature on regional development, identifying three distinct types of agency that shape regional development processes. Combining this framework with a process perspective on urban experiments, we develop an analytical framework, which allows for a more granular understanding of agency in urban sustainability transitions. The analytical framework is then brought to use in a case study of an urban experiment aiming to electrify public transport in Gothenburg, Sweden.publishedVersio

Path tracing in the study of agency and structures : Methodological considerations

Despite the rapidly expanding literature on agency in regional development, the methodological approaches available to study it have not followed theoretical development and empirical studies. This article aims to shed light on methodological issues related to the study of path dependence, path creation and agency. The article’s main purpose is to construct a methodology - path tracing - that would allow studying path development by scrutinising how structures constrain actors and how actors work to shape the very same structures in which they are embedded. Path tracing draws on critical realism, process tracing and structured narrative analysis.publishedVersionPeer reviewe