nep-ino New Economics Papers
on Innovation
Issue of 2005‒11‒09
34 papers chosen by
Koen Frenken
Universiteit Utrecht

  1. Enterpreneurship and innovation activites in the schumpeterian lines By George Korres; Emmanuel Marmaras; George Tsobanoglou
  2. The effects of scientific regional opportunities in science-technology flows: Evidence from scientific literature in firms' patent data By Manuel Acosta; Daniel Coronado
  3. Geographical proximity and circulation of knowledge through inter-firm cooperation By André Torre; Delphine Gallaud
  4. The innovation system vs. cluster process: common contributive elements towards regional development By George Ramos; Domingos Santos
  5. The Role of Multinational Corporations in Metropolitan Innovation Systems – Empirical Evidence from Europe and South-East Asia By Javier Revilla Diez; Martin Berger
  6. Effects of innovation diffusion on the development level for some European regions in the expansion period of the European Union By Gündüz Atalik; Seda Kundak
  7. Co-operation between companies and the advisory system in innovations – a comparative analysis of Northern Germany and Western Denmark By Andreas P. Cornett
  8. Development and innovation of technological networks in some peripheral urban areas. By Luca Ruggiero
  9. Regional Innovation Systems: Current Discourse and Challenges for Future Research By David Doloreux; Saeed Parto
  10. Role of regional policies in promoting networking and innovation activity of firms By Kirsi Mukkala; Jari Ritsilä
  11. Role of Networking in Innovation Promotion and Cluster Modernization: “House of the Future” Case By Jorge Alves; Maria José Marques; Irina Adriana Saur
  12. Innovation and production clusters in Europe By Rosina Moreno; Raffaele Paci; Stefano Usai
  13. Standards behaviours face to innovation of the entrepreneurships of Beira Interior By Maria Manuela Santos Natário; Felisberto Marques Reigado; Paulo Neto
  14. Stimulating the Division of Innovative Labor by Regional Competition for R&D Subsidies – A New Approach in German Innovation Policy By Alexander Eickelpasch; Michael Fritsch
  15. SMEs and ICTs adoption : a new challenge to Regional Policies By António Soares; Gonçalo Santinha
  16. The Impact of Public Research Units on Regional Innovation Processes and Regional Economic Development By Martin T.W. Rosenfeld; Diana Roth
  17. The effect of regional differences on the performance of software firms in the Netherlands By Anet Weterings; Ron Boschma
  18. Regional innovation networks evolution and firm performance: one or two way causality? By Joana Almodovar; Aurora Amélia Castro Teixeira
  19. The adoption of communication and information technologies and the local development in Côa’ Region By Maria Manuela Santos Natário; Ascensão Braga; João Couto; Maria Teresa Borges-Tiago
  20. Entrepreneurship, geography and technological change By Zoltan Acs; Attila Varga
  21. INNOVATION TECHNOLOGIQUE DANS LES RESEAUX MOBILES ET CREATION DE LA VALEUR: CAS DE LA BANQUE MOBILE By Achraf AYADI; Chantal AMMI
  22. Multi-actor regional governance: regions as new players for innovation in Europe By Knut Koschatzky; Vivien Lo
  23. Entrepreneurial Culture, Regional Innovativeness and Economic Growth By Sjoerd Beugelsdijk
  24. Spatial Patterns of Technology Diffusion: An Empirical Analysis Using TFP By Maria Abreu; Henride Groot; Raymond Florax
  25. Ambivalences of the Creative Class: Space, reflexivity and the Restructuring of the German Advertising Industry By Joachim Thiel
  26. Modeling adoption of innovations in agriculture using discrete choice models By Daniel Shefer; Mordechai Cohen; Shlomo Bekhor
  27. The North-South Digital Divide in Information and Communication Technologies Development: the Case for Spanish Regions By Fernando Lera; Margarita Billón
  28. Spin-off firms and individual start-ups. Are they really different? By Sierdjan Koster
  29. Variety, Employment and Regional Development in The Netherlands By Koen Frenken; Frank Van Oort; Thijs Verburg; Ron Boschma
  30. Entrepreneurial attitudes of Andalusian university students By Francisco Liñán Alcalde; Juan Carlos Rodríguez Cohard
  31. Regional ICT industries growth: Common prejudices and empirical evidence By Per Botolf Maurseth; Björn Frank
  32. Censorship: the Key to Lock-In? By Brendan M. Cunningham
  33. Why is Economic Geography not an Evolutionary Science? By Ron Boschma; Koen Frenken
  34. Spatial effects on technical progress: growth, and convergence among countries By Fernando Barreiro-Pereira

  1. By: George Korres; Emmanuel Marmaras; George Tsobanoglou
    Abstract: The importance of diffusion of technology for economic growth has been emphasised by economic literature. Much of the recent work on economic growth can be viewed as refining the basic economic insights of classical economists. The recent debate on the determinants of output growth has concentrated mainly on the role of knowledge, typically produced by a specific sector of the economy, and furthermore in the role of entrepreneurship and the implications on economic growth. This paper attempts to examine the role of entrepreneurship, and those of innovation activities (technical change, research and development and diffusion of technology) and the effects of output growth, according to the Schumpeterian lines. Following on the Schumpeterian tradition, this paper starts from the recognition that there are two main patterns of innovations: the first one is the creative destruction pattern and the second one is a creative accumulation pattern. Also, it emphasizes the role of entrepreneurship and the impact of the diffusion of technology in the inter-country and international economic contexts using some of the empirical implementation of epidemic, probit analysis and moreover from technological substitution models. Key Words: Entrepreneurship, Innovation Activities, Diffusion, Modernization, Competitiveness, Schumperer.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p169&r=ino
  2. By: Manuel Acosta; Daniel Coronado
    Abstract: Relevant scientific literature has demonstrated that in spaces of smaller scale than the national, the availability of scientific knowledge is also relevant for generating spillover effects that benefit the industrial sector. The proliferation of such literature consistently stressing the importance of physical proximity for the two-way flow of knowledge and for the development and fostering of innovation, together with the high degree of self-government of the Spanish regions (which have the competence to develop their own R&D policies), all suggest that the relationships between the scientific community and the industrial sector may be closer and more productive in the regions where the scientific potential is more relevant, in comparison with other regions. The basic objective of this article is to test for the possible differential effects of a favourable scientific environment on science-technology relationships, and more specifically, to determine if the considerable regional resources directed towards scientific research in local universities are being translated into economic results for industry, by way of better utilisation of scientific knowledge to enable companies to generate more and better innovations in processes and products. The methodology that we employ relates the scientific citations in patent documents - as a basic indicator of these science-technology flows- with various indicators of resources and results of academic research that reflect the scientific research environment. With caution, and recognising the limitations inherent in the NPC (non patent citation) methodology, different econometric specifications permit the conclusion to be drawn that companies of those regions with a more favourable scientific environment make greater use of scientific knowledge. JEL Classification: O31, O38, C21, R59.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p270&r=ino
  3. By: André Torre; Delphine Gallaud
    Abstract: The production of scientific and technological innovations has become essential for many firms, but the latter are seldom in possession of all the knowledge needed for this activity because of the increasing complexity of knowledge bases or because R&D departments are too small. As they do not possess internally all the skills they need, firms wishing to innovate have recourse to external sources, such as cooperation with other firms or public organizations of research. However, acquiring external knowledge is not sufficient; one must also be able to use it in a specific process of production, to transform it into organizational routines, because it is important not only to integrate this knowledge, but ideally to use it to produce new knowledge. This process of creation, re-creation or imitation of new resources not only necessitates several technical and organizational adaptations, but also requires frequent relations of cooperation and partnership. The integration of new knowledge cannot be done in one go, but progressively during the course of the innovation projects, which implies that relations be sustained for a period of time. But the interests of the participants to this interactive process, as well as their opinions concerning technical issues sometimes vary or diverge. This is why co-operations are also sources of tensions and conflicts that jeopardize the adaptation of knowledge produced somewhere else to the context of the firm or even completely hinder the innovation process. In this paper, we try to provide some answers to the following question: What is the role played by geographical and organized proximities in the context of these external acquisitions of knowledge? In other words, can they help reduce the intensity of conflicts and thus facilitate the interactive process of innovations? First, we present shortcomings of innovation theory and works on spillovers claiming the importance of geographical proximity for circulation of knowledge without considering organizational prerequisites to reach this impact. Having explained the relevance of permanent as well as temporary geographical proximity, we will then turn to a discussion of conflicts between cooperators within innovation processes from a theoretical as well as an empirical perspective. The empirical study is based on a case study of French biotechnology firms and will serve to prove our hypothesis that temporary geographical proximity play an important role in preventing and resolving conflicts between innovators.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p35&r=ino
  4. By: George Ramos; Domingos Santos
    Abstract: Recent approaches to the study of innovations enhance some similar aspects of the innovation process in knowledge-based economies: (i) the systemic and interrelated nature of innovation and (ii) its geographic and inter-economic activities density of networking. One perspective is linked to the innovation systems approach at the national, regional and local level. What we know so far is that the most specialized forms of knowledge are becoming a short lived resource, in face of the (increasingly) fast changes that are occurring in the global economy; it’s the ability to learn permanently and to adapt to this fast changing scenario that determines the innovative performance of firms, regions and countries. Another approach is to be found in the research on cluster development, where proximity and interrelated technical/technological linkage are the main features to take under consideration. Although these two approaches operate at slightly different spatial scale of analysis, they both allow the identification of a set of key factors that contribute to understand the way in which institutions and actors, considering the innovation system or the cluster process, participate in the innovation atmosphere and in the economic growth. Nevertheless, both approaches show the same limitation: they tend to focalise into the descriptive and analytical level, disregarding the explanatory level. Local and regional authorities are, mainly, interested in the process of cluster intensification in the local and regional economies context. This feature stress out one other controversy level: are the “hard” location factors (the concrete tangible location factors) more important than the “soft” location factors (qualitative, intangible factors) or vice-versa? This paper aims to explore the current knowledge about this process and to open some fields of future research.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p462&r=ino
  5. By: Javier Revilla Diez; Martin Berger
    Abstract: Using firm-level survey data from Barcelona, Stockholm, Vienna in Europe and Singapore, Penang (Malaysia) and Bangkok in South-East Asia the paper enquires into the different R&D and innovation behaviour of multinational and local companies in these Metropolitan Regions. Scrutinizing a set of input, throughput and output indicators as well as information on cooperation characteristics, we try to evaluate a) if the spatial pattern of more (intense) innovation activity in Europe when compared to South-East Asia is still valid; and b) if there are reasons to believe that R&D units of multinational corporations in Europe are mainly concerned with the enhancement of the knowledge base and the development of future competitiveness by tapping into localized knowledge and using the particular host regions’ innovation systems, while, on the other hand, MNCs in South-East Asia use R&D to support existing production facilities in order to exploit an existing competitive advantage. We are able to show that there is still a major gap in the innovation performance between South-East Asia and Europe and that there are indeed indications that R&D units in Europe are more orientated towards the augmentation of the company’s knowledge base.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p642&r=ino
  6. By: Gündüz Atalik; Seda Kundak
    Abstract: It is argued that innovation diffusion, in other words the movement of the new ideas or articrafts within an area over a number of time periods could become widespread once introduced in the area. After Schumpeter the role of the innovator has been significant as the inventor, as the developer or as the promoter. It is clear now that a number of economists have one thing in common that profit rates would be pushed to minimal levels in the absence of technical development. In fact, in the new theories of development concepts related to knowledge development and its diffusion take precedence. Moreover, concerning regional disparities and regional convergence issues in the European Union, it is pointed out that R&D investment in lagging areas could be the only way to avoid technology and development divergence between core and periphery. In this connection, it might be worthwhile to consider the enlargement process of the European Union with further expansion period. In this way, the objective of this article will be to find out probable effects of R&D on the development level in a five-years period (1996-2001) in order to examine the efficiency rate of innovation diffusion on the development level and to derive some theoretical and practical results.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p30&r=ino
  7. By: Andreas P. Cornett
    Abstract: Innovations and the capacity to innovate are crucial factors in the development of a firm and its ability to adapt to changes in the external environment. Growing attention has been paid to the mechanisms facilitating innovation in firms, both in large, small and medium-sized enterprises. As a consequence, attention has been on the role of innovation policy in economic policy in general and regional development in particular. The aim of this paper is to analyze the linkages between the business advisory system’s efforts to promote innovation and the innovative activity within the firm with special attention to small and medium sized enterprises. The main aspects addressed deal with entities and relations of the innovative environment. The focal point is the interaction between the analyzed business entity and the external environment as a part of a broader network of innovative relations covering intra-firm as well as extra-firm relations and processes. The paper will highlight three aspects of the topic: • In the first part of the paper concepts and policies of innovation are discussed with regard to their ability to influence economic development. • The second section is dedicated to an introduction to the role of the advisory system in the creation of a regional innovative business environment, and will in particular focus on the comparative analysis of regional systems of innovation in an organizational and structural perspective. • The next section analyzes the regional system of innovation based on a survey of manufacturing firms and advisory organizations in Western Denmark and Northern Germany. The essential objective of this survey is to identify the potential of, and the crucial obstacles to a proactive regional innovation policy, since previous studies have shown that in particular small firms have difficulties in using the advisory system and the services offered. Based on this analysis, the study aims at contributing to the ongoing discussion of the role of public support schemes in innovation and technology in a regional and organizational perspective, based on the comparative analysis of regions in two countries. Key words: Regional system of innovation - Advisory system - Business incubators and science parks - R & D programs
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p96&r=ino
  8. By: Luca Ruggiero
    Abstract: The society that emerged out of the crisis of the fordist model of production and organisation of space is increasingly dominated by development, innovation and diffusion of urban technological networks (telecommunications, transport, energy, etc.). There are nowadays, working at different geographical scales, an amount of projects to increase the number of networks and connect a larger number of people and organisations. This is based on the notion that the emergence of an internationally-integrated and increasingly urbanised Network Society would allow better connection between the local and the global level and vice versa, giving those marginal areas the opportunity to take part to the main development dynamics. The rise of the network society is also often associated with a regeneration of the local administrations, in ways that would make them more efficient and clear, improving territorial government and citizens quality of life. Besides, the development of the ‘digital city’ seems to be connected with the emergence of new professional careers and a virtual space interacting community that would help to better meet the needs of local society and increase the level of participation to territorial government decision making. On the opposite side some authors argue that the contemporary conditions of development and innovation of infrastructure networks world-wide are particularly favourable to ‘secessionary tendencies’ and lead to the deliberate creation of premium networks that selectively tend to connect together only the most favoured users and places. In the present paper I will analyse these contradictory tendencies attributed to the development and innovation of infrastructure networks operating within and between cities. I will concentrate mainly on the experience of some, considered, marginal urban realities of the Mediterranean area.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p515&r=ino
  9. By: David Doloreux; Saeed Parto
    Abstract: In recent years, the concept of Regional Innovation Systems has evolved into a widely used analytical framework generating the empirical foundation for innovation policy making. Yet, the approaches utilizing this framework remain ambiguous on such key issues as the territorial dimension of innovation, e.g., the region, and the apparently important role played by “institutions” or the institutional context in the emergence and sustenance of regional innovation systems. This paper reviews and summarizes the most important ideas and arguments of the recent theorizing on regional innovation systems to provide the basis for a critical examination of such issues as (1) definition confusion and empirical validation; (2) the territorial dimension of regional innovation systems; and (3) the role of institutions. Key-words: Regional innovation systems, institutions, regions, research, policy JEL CODES: O31, R58
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p56&r=ino
  10. By: Kirsi Mukkala; Jari Ritsilä
    Abstract: The success of firms and regions is increasingly defined by their innovation and learning capabilities. It has been emphasized in several studies that a local operational environment may have a positive impact on innovation activity of firms. From policy point of view, the relationship between firms and their local environment is an important research topic. The purpose of this paper is to explore whether there is a demand for regional policy makers in promoting innovative and networking activity of firms, and what are the appropriate strategies in this regard. The concept of innovative milieu provides a theoretical base for this study. The data used is based on personal interviews representing 30 high tech firms located in Jyväskylä Science Park in Finland. The results show that the firms appreciate an individual-level approach by policy makers which enables them to take the real needs of firms into consideration. A developed service structure, that is planned to meet the demand of new and established firms as well as possible, is an essential part of the well functioning operational environment. Supporting contacts with service providers and experts from different fields and organizing collective meetings for firms are important targets for the policy makers. In the innovation process, a commercial view of external part is considered very crucial. The small advances which alternate between the development of the innovation process and networks among firms and their interest groups could form a favourable path towards an operational environment with efficient innovative networks.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p201&r=ino
  11. By: Jorge Alves; Maria José Marques; Irina Adriana Saur
    Abstract: This paper stresses the potential of innovative business cooperation networks in promoting regional competitiveness. It is based on the case study of a cooperation network, named “House of the Future”, carried out in the framework of a project where the University of Aveiro has an important role. It suggests success factors in the development of co-operation networks between firms from various sectors and a university. The aim of the “House of the Future” initiative is to promote an innovative approach to inter-organizational cooperation joining together firms from a number of different industrial activities related with the habitat meta-sector. This collaborative effort can function as an experiment for the design of regional innovation policies.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p82&r=ino
  12. By: Rosina Moreno; Raffaele Paci; Stefano Usai
    Abstract: This paper investigates on the presence of innovation and production clusters in Europe. The analysis is based on an original statistical databank set up by CRENoS on regional patenting at the European Patent Office spanning from 1978 to 1997 and classified by ISIC sectors (3 digit) and on the Cambridge Econometrics database on production activity. We consider 138 regions of 17 countries in Europe, the 15 members of the European Union plus Switzerland and Norway. Firstly, an analysis of the spatial distribution of innovation and production activities in Europe is performed. Some global and local indicators for spatial association are presented, summarising the presence of a general dependence process in the distribution of the phenomena under examination. The analysis is implemented for different manufacturing macro-sectors to assess for the presence of significant differences in the their spatial features. Moreover, the extent and strength of spatial externalities are evaluated for three different periods: 1981-83, 1988-90 and 1995-97. Secondly, the spatial mapping of innovation is compared to the distribution of productive activity. Keywords: Innovation activity, Production specialisation, Spatial analysis, European regions.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p587&r=ino
  13. By: Maria Manuela Santos Natário; Felisberto Marques Reigado; Paulo Neto
    Abstract: Accord Aydalot (1986), the firm in no heaven-sent agent free to “choose” an environment, it is secrete by its environment. The firm is not an isolated innovative agent but is part of the milieu, which makes it act. The competitive and innovative performance of the territory, territories more or less competitive and innovative, requires persistence and participation of the different actors: companies, institutions of support and assistance to the company’s activity, public institutions. We do not have the ambition to cover the whole different actors, but illustrate the approach that reflect the better performance innovative of the companies is associate to different factors of the environment milieu and evaluate the determinant conditions of participation in innovation activities. Our purpose is to analyse the behaviour of the companies of 3 NUTS III of Beira Interior of Portugal, relatively to the innovative initiatives. We use a survey applied to vast set of companies. The methodology is based on the application of the multivariate statistics: k-means analysis clusters that allowed distinguish 3 standard behaviours from the companies. To classify the standard behaviour of the companies and identify the characteristics of each cluster, we applied the crosstabs and compare means. We consider the fowling attributes to the different clusters: process of innovation, the mechanisms of knowledge, the networks and the system of governance. These attributes will help to trace the profile of the innovative behaviours and to perceive which the factors or variables of the environment those are links with the best performance on innovation.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p502&r=ino
  14. By: Alexander Eickelpasch; Michael Fritsch
    Abstract: The paper deals with a new approach in German innovation policy that organizes contests of initiatives for public funds. Based on an overview of the different programs we investigate the advantages and problems of such an approach. We find that this type of policy may have a large impact and can, therefore, be regarded a rather efficient instrument of innovation policy. Compared to conventional policies implementation is a much more critical issue. The contest approach may require more flexibility on the side of the administration, particularly with regard to the design of the assistance. The main disadvantage is the additional time that is required for conducting the contest. As a distinct “picking the winner” instrument it is not suited as a means for achieving a leveling-out of welfare levels. Keywords: Innovation policy, regional competition, innovation networks JEL-classification: H32, O18, O38, R11
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p376&r=ino
  15. By: António Soares; Gonçalo Santinha
    Abstract: Information and Communication Technologies (ICTs) and their widespread have produced profound changes at economic and social levels. We are now in what is known as Information Society. The ways in which people, firms, institutions and governments deal with ICTs and understand their impacts is an important issue. One of the main characteristics of Information Society is the growing competition between agents through innovation. By innovation we mean the capacity to manage creatively the knowledge as an answer to changes in social needs and in technology. Hence, innovation occurs as a means of competitive advantage. The paper addresses this issue by highlighting the importance of innovation for Small and Medium Enterprises (SMEs), which are by far the most relevant actors in European Economy. It is argued that the access and use of information as well as the existence of interaction between agents are key factors for innovation. ICTs, if used in a correct and efficient matter, can play an important role by inducing and help SMEs to innovate. In spite of helping firms overcoming a wide range of barriers, the adoption and the search for efficiency in ICTs use can however become a problem. This is even more significant concerning SMEs and particularly those located in peripheral regions. In fact, acknowledging the existence of a regional digital divide and a digital divide by company size, the European Commission is developing several actions in order to face and overcome these problems. The paper addresses several initiatives undertaken by the European Commission since the Lisbon summit at March 2000. More recently, the European regional policies have changed from simply getting SMEs connected to the Internet to the effective integration of ICTs into business processes. As a conclusion, the authors argue that Digital Policies should take into account that ICT adoption and use by SMEs, cannot be regarded as a panacea to solve the problems of firms and regional development. Regional policies to help SMEs to adopt ICT must be integrated (in a coherent way) within broader regional strategies.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p435&r=ino
  16. By: Martin T.W. Rosenfeld; Diana Roth
    Abstract: It is well-known today that innovation activities of private firms play a significant role for economic growth in less-developed regions. There are many studies on these interrelations and on explaining how regional innovation processes are working and which factors are important for them. However, some important questions have still not been completely answered by these studies. One of these questions is that of the role of public research units (PRU, which include publicly financed universities and research institutes) in the process of regional innovation. There have already been several studies on the economic impacts of selected PRU on economic growth. But it is not comprehensively answered so far to what extent the impact on economic growth of a PRU is concentrated on the region where the PRU itself is located. In other words: Whether the ”knowledge transfers offered by a PRU will have more effects on firms located nearby (at a small distance from the PRU) than on firms at other locations - or if other factors than spatial distance are more important for the decision of private firms to use knowledge transfers from certain PRU. The paper presents the results of a research project for answering this question for the case of the Halle region (= the southern part of the German Land Saxony-Anhalt). It is based on an empirical analysis (two postal surveys on PRU and on knowledge-based private firms) with a focus on the most important types of knowledge transfers. For those firms which are cooperating with PRU, if it is shown that spatial distance is an important factor, in the sense that firms which are located nearer to the PRU are cooperating more intensively with the PRU than firms which are located in other regions. But also important for the firms is the import of knowledge transfers from PRU which are located outside Saxony-Anhalt. With regard to the determining factors which are important for the spatial direction of knowledge transfers, it is shown that apart from spatial proximity, also various factors on the demand side may inhibit knowledge transfers. Therefore, for being effective, regional policy should also deal with the demand side (and not just with public research units) to create better conditions for knowledge transfers in structural weak regions.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p160&r=ino
  17. By: Anet Weterings; Ron Boschma
    Abstract: In this paper, we concentrate on how evolutionary economics contributes to a better understanding of the spatial evolution of newly emerging industries. Inspired by evolutionary thinking, four types of explanations are discussed and tested in an empirical analysis of the spatial pattern of the software sector in the Netherlands. Traditionally, agglomeration economies provide an explanation for the spatial concentration of an industry. Firms located in a cluster of similar or related sectors benefit from cost reductions, due to lower transportation costs, a thick labour market, specialised suppliers and information spillovers. An evolutionary approach on agglomeration economies provides an alternative view. It focuses explicit attention on knowledge spillovers as a vehicle of local diffusion of organizational routines or competences from one firm to the other. Such transfers of (tacit) knowledge are facilitated by spatial proximity of firms and a common knowledge base. In addition, an evolutionary approach takes a dynamic perspective on the role of agglomeration economies. During the initial stage of development of a new industry, the surrounding environment is still directed to routines and competences related to existing industries. When the new industry concentrates in a particular area to a considerable degree, a supportive environment (specialized knowledge, labour with specific skills) may gradually come into being, and localization economies may arise. Other evolutionary mechanisms may also provide an explanation for the spatial formation of new industries. We distinguish another three of them. First of all, transfer of knowledge and successful routines between firms in an emerging industry may occur through spin-off dynamics. Secondly, (social) networks may function as effective channels of knowledge diffusion and interactive learning, because they can provide a common knowledge base and mutual understanding and trust. Thirdly, firms in new industries with organizational capabilities that can deal effectively with the lack of required resources (such as knowledge, skills and capital) may become dominant, due to selection and imitation. Based on cross-sectional data gathered among 265 software firms in the Netherlands in 2003, we have tested which factors have influenced the innovative productivity of these firms. Using regression techniques, the outcomes suggest that spin-offs and firms with organizational capabilities perform better, while networks relations do not seem to affect the performance of software firms. Geography matters as well: software firms located in a region with a labour market with more ICT-skills show a higher innovative productivity. Keywords: evolutionary economics, industrial location, evolution of industries, software sector, agglomeration economies, organizational capabilities, spin-off, networks
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p208&r=ino
  18. By: Joana Almodovar; Aurora Amélia Castro Teixeira
    Abstract: Current research has revealed the existence of a relationship between networks and firm growth (Jarillo, 1989; Huggins, 2000). Nevertheless, network content and specificity and how these networks influence firm economic and financial performance has been little investigated. In addition, the influence of regions in relation to the spatial proximity on inter-firm networks should be an additional dimension taken into account if the determinants of firm performance are to be adequately understood. The most important linkages tend to be characterised by territorial closeness and have relevant effects over firm performance (Oerlemans and Meeus, 2002; Lechner and Dowling, 2003). Since automobile industry can be regarded as a worldwide cluster, where the evolution tendency on constructor’s behalf has been to gradually delegate technological competencies into industry suppliers, the regional networks acquire a renewed importance beyond the recognized benefits of sharing, interaction and reciprocity. Given that networks “do not happen in a virtual space where spatial proximity does not matter” (Lechner and Dowling, 2003: 9), the Portuguese inter-firm cooperation within the automotive industry can be regarded as a possible source of regional advantage for responding to globalisation competitive challenges. Thus, in this paper we explore how firms grow through the use of external linkages and become competitive, using case study material based on a Portuguese inter-firm network of the auto-parts industry (ACECIA) and one of its founding members, Simoldes. Using a set of performance indicators, we concluded that its positive evolution was contemporaneous and last beyond ACECIA´s constitution date. Moreover, evidence of possible leverage effects from the combined collaboration emerged indicating that the relation between networks and firm performance implies a two-way causality association.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p88&r=ino
  19. By: Maria Manuela Santos Natário; Ascensão Braga; João Couto; Maria Teresa Borges-Tiago
    Abstract: This paper examines the imbalances in the availability and usage of communication and information technology infrastructure in the Côa’ Region. Based on an empirical study, the imbalances could be broadly attributed to differences in funding, management and technical expertise, exposure and awareness to available technologies, training, and other infrastructure like R&D laboratories/institutes and universities. In the organisations studied, the imbalances could be broadly attributed to differences in factors as industry, dimension, management education, but also lack to cooperation, workers mobility and reduced markets which are common factors in disfavoured regions.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p380&r=ino
  20. By: Zoltan Acs; Attila Varga
    Abstract: Technological change is a central element in macroeconomic growth explanation. Endogenous growth models take a revolutionary step towards better understanding the economic growth process by deriving technological change from profit-motivated individual behavior. In endogenous growth theory knowledge spillovers play a fundamental role in the determination of the rate of technological progress. As such the efficiency of transmitting knowledge into economic applications is a crucial factor in explaining macroeconomic growth. Endogenous growth models take this factor exogenous. We argue that variations across countries in entrepreneurship and the spatial structure of economic activities could potentially be the source of different efficiencies in knowledge spillovers and ultimately in economic growth. We develop an empirical model to test both the entrepreneurship and the geography effects on knowledge spillovers. To date the only international data that are collected on the basis of exactly the same principles in each country are the Global Entrepreneurship Monitor (GEM) data. We use the 2001 GEM cross-country data to measure the level of entrepreneurship in each particular economy. For this purpose we apply the TEA index developed within the framework of the GEM project and calculated for each country participating in this international research. Additionally, data on employment, production, patent applications, public and private R&D expenditures originating from different international and national sources are applied in the paper.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p516&r=ino
  21. By: Achraf AYADI (Institut National des Télécommunications d'Evry); Chantal AMMI (Institut National des Télécommunications d'Evry)
    Abstract: L’explosion du nombre de terminaux mobiles dans le monde, au point de dépasser celui des ordinateurs et des postes de télévision, est un fait économique important. Avec les nouveaux réseaux de télécommunication et l’accroissement des capacités de traitement des terminaux, de nouvelles possibilités d’interagir et de communiquer avec les clients, y compris via le réseau Internet, ont fait leur apparition. Ainsi, l’Internet Mobile apporte des opportunités d’élargissement de la palette des services proposés sur le marché sous de nouvelles formes mais aussi suivant d’autres « modèles économiques ». Le secteur des services, caractérisé par sa forte sensibilité aux innovations dans les technologies de l’information, se trouve au centre de ces changements qui ne seront pas sans impact sur la stratégie des acteurs ou leurs relations avec la clientèle. Partant de la littérature sur l’innovation dans les services, nous étudions les tendances technologiques les plus récentes dans l’Internet Mobile. Ensuite, nous analysons les facteurs de développement des services mobiles dans le secteur bancaire et leur impact sur la chaîne de valeur. Enfin, nous présentons les conclusions en terme de perspectives stratégiques pour la banque mobile et ses évolutions futures. MOTS CLES Création de valeur, réseaux mobiles, Internet Mobile, Innovation, Banque Mobile
    Keywords: Mobile Banking
    JEL: O P
    Date: 2005–08–24
    URL: http://d.repec.org/n?u=RePEc:wpa:wuwpdc:0508009&r=ino
  22. By: Knut Koschatzky; Vivien Lo
    Abstract: In recent years, new regionally based strategy building processes emerged at the interface between public policy and the social coordination of collective action. Foresight as a governance process for stimulating regional innovation and for strengthening the regional economic system against global competition became a popular concept. Based on the experiences of a strategy building process in the Italian autonomous province of Trento, it is the objective of the paper to sketch recent theoretical and political developments regarding multi-actor and multi-level governance and policy concepts at the regional level.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p140&r=ino
  23. By: Sjoerd Beugelsdijk
    Abstract: This paper presents the results of an empirical study on the relationship between entrepreneurial culture, regional rates of innovation and regional economic growth. Recent literature mainly in regional science and economic geography has emphasized the role of an entrepreneurial culture in explaining the economic success of regions. Most of these contributions are however conceptual or case-based. Building on Leibenstein’s view of the entrepreneur as the ‘input completer’ and the Austrian school in which entrepreneurial activity is attributed a central role I hypothesize that regions which can be characterized as having an entrepreneurial culture are more innovative and grow faster. I use a standard economic growth model and test this hypothesis on a sample of 54 European regions. The results confirm the importance of an entrepreneurial culture. Keywords: entrepreneurship, culture, innovation, regional economic growth JEL code: Z1, R11
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p210&r=ino
  24. By: Maria Abreu; Henride Groot; Raymond Florax
    Abstract: We investigate the spatial distribution of TFP growth rates using exploratory spatial data analysis and other spatial econometric techniques. Our sample consists of 73 countries and covers the period 1960-2000. We identify significant positive spatial autocorrelation in TFP growth rates, indicating that high and low values tend to be clustered in space. We also find strong positive spatial autocorrelation in TFP levels, which has increased over the period 1960-2000. This result may be indicative of a tendency towards clustering over time, a conclusion reinforced by our finding of two clusters of high TFP growth rates (in Europe and South East Asia), and two clusters of low TFP growth rates (in the Andean region and Sub-Saharan Africa). We estimate the Nelson and Phelps (1966) model of technology diffusion while allowing for spatial dependence in the error term. Our estimation results suggest that both the growth rate and the level of human capital have an important effect on productivity growth rates. JEL:I2,O4,C21. Keywords: human capital, technology diffusion, spatial econometrics.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p425&r=ino
  25. By: Joachim Thiel
    Abstract: One of the most remarkable and successful regional science publications of the last years is certainly Richard Florida's "The Rise of the Creative Class". Based on the key idea that today's economy is increasingly "powered by human creativity" Florida holds that the presence of a non-conformist creative workforce is the crucial factor for the future competitiveness and development of cities and regions. This in turn will substantially change the subject of local economic policy in that it has to be increasingly directed towards the living conditions of this workforce. The suggested paper, despite acknowledging the vital importance of an individualistic – or 'reflexive' – labour force for the (not only) spatial organisation of the future economy, will be strongly critical with Florida's arguments, maintaining that he starts from a too self-evident and monocausal understanding of the relation between creativity/individualism and economic success. Basically it is held that the way from non-conformism to business is full of ambivalences, uncertainties, frictions etc. which have to be dealt with. The spatial dimension of the future economy is based precisely on and shaped by these 'refractions', respectively by the ways to handle them. The argument will be underpinned by highlighting the evidence of an in-depth study of the spatial structure and spatial change of the German advertising industry.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p222&r=ino
  26. By: Daniel Shefer; Mordechai Cohen; Shlomo Bekhor
    Abstract: This paper is concerned with the development of varieties and fertilization techniques of greenhouse tomatoes, and their spatial diffusion in the northwestern region of the Negev in Israel. The main objective of the paper is to identify the factors affecting the farmers’ decision to adopt innovations and the factors inducing the process of knowledge-diffusion in the rural region. The approach adopted is the use of discrete choice models based on random utility theory. Results of the empirical analysis when applying the disaggregate Logit Model indicate that the regional, local and individual attributes have a significant bearing on the farmers’ decision-making process in regard to choosing among alternative tomato varieties and fertilization techniques. The findings indicate that the models constructed for this study may be used as a planning tool for the purpose of evaluating the effect of different factors on the spatial diffusion of innovations in rural regions. The results of the research could also assist decision-makers in formulating development policies for rural regions. Keywords: Spatial diffusion; discrete choice models; greenhouse tomatoes; nested logit
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p484&r=ino
  27. By: Fernando Lera; Margarita Billón
    Abstract: The "New Economy" is a concept that is associated with the growth of the US economy in the second half of the nineties, which were characterised by high growth in GDP. In attempt to find an explanation for these events, research to date cites the main determinant to be the marked rise in labour productivity that came about as a result of the impact of Information and Communication Technologies, particularly the Internet. The purpose of the present study is to examine the phenomenon that has arisen around this "new or digital economy" and the development of the Internet from the macro and microeconomic viewpoint and then show how the Spanish regions lag behind the rest of Europe in this respect. Firstly, we present international evidences of the positive impact of ICT in terms of labour and multifactorial productivity in national economies, industrial sectors and firms. These evidences are contrasted with some spanish studies. Secondly, we measure the importance of ICT in Europe. We base our method on a set of indicators, classified into three areas: infrastructure and size of sector, use of Internet and electronic commerce, and social and economic effects. We then examine the Spanish situation electronic commerce, and social and economic effects. We then examine the Spanish situation within the context of the rest of Europe, and discover a major north-south digital divide affecting certain areas, along with major interregional disparities. As far as Internet development is concerned, there are major regional differences. The paper points out the fact that Spain registers the highest standard deviation, in other words, the greatest regional differences, which, reflected in terms of different synthetic/composite indicators. This lag in progress contrasts with Spain's public policies aimed at promoting the Internet. Nevertheless, Internet development can provide the opportunity to close this gap within the EU. It may, however, increase discrepancies between the regions, by giving regions with higher per capita income an advantage in terms of productivity and competitiveness, unless a determined effort is made to implement actions aimed at developing the information society.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p307&r=ino
  28. By: Sierdjan Koster
    Abstract: In the field of firm demography, spin-offs have recently attracted attention as a very successful form of new firm formation. Policy makers see spin-offs as particularly fertile innovators in an economy. Theoretically, following lines of thought from the resource-based theory, spin-offs are also expected to perform better than other start-ups that lack the resource base spin-offs inherited from their mother companies. This paper shows, based on an empirical study of American entrepreneurs (ERC-dataset) that spin-offs are indeed a step ahead of firms that do not receive support from a third party company. In the early stages of their existence, spin-offs are leading other new firms in the development of their products, spin-offs show an increased tendency to hire personnel, and spin-offs receive their first income sooner than other firms. At start-up, spin-outs hardly differ from individual start-ups, which have not received any back-up during the gestation process. After one year they seem to perform slightly better.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p287&r=ino
  29. By: Koen Frenken; Frank Van Oort; Thijs Verburg; Ron Boschma
    Abstract: We explain employment growth in 40 Dutch regions for the period 1996-2002. Our main interest is to test the effect of sectoral variety using data on five-digit sector employment, while controlling for traditional variables. Our measure of variety is entropy, as this measure allows for decomposition of variety into related and unrelated variety. We distinguish between related and unrelated variety effects. Related variety is associated with Jacobs externalities (spillovers), while unrelated variety tests portfolio advantages. We also take into account the effect of specialisation on employment growth. The results suggest that only related variety significantly contributes to employment growth. The popular dichotomy between variety and specialisation may thus be misleading. Our study underlines the more recent concept of “diversified specialisations” as central driver of growth.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p386&r=ino
  30. By: Francisco Liñán Alcalde; Juan Carlos Rodríguez Cohard
    Abstract: At the present time, the entrepreneur's essential role in the process of regional economic development is generally recognized. A greater degree of entrepreneurial dynamism in a region is usually associated with higher growth rates and development levels in the long run. In particular, there seems to be a greater participation in firm creation processes among highly educated people, as well as those aged 25 to 34 years. Therefore, this segment of the population would be the one with the greatest entrepreneurial potential. It would be a strategic segment for the design of more effective entrepreneurial development measures. In the case of the Spanish region of Andalusia, it has an income level well below the national and, especially, the European Union average. At the same time, the entrepreneurial activity is also one of the lowest nationally. Thus, whether we measure the share of the labour force working for themselves, or the mean size of the firms, both indicators are clearly under to the national average. Therefore, it is interesting to analyze the degree of entrepreneurship of the population or, at least, of that segment with highest entrepreneurial potential. Only starting from an accurate diagnosis will it be possible to act in a really effective way. From this standpoint, the objective of this paper is to know the attitudes of the Andalusian university students towards entrepreneurial activity and the creation of enterprises. Those students are especially relevant, since they belong to that strategic segment of higher entrepreneurial potential individuals. In fact, they are both highly educated and around the age of 25. Besides, universities constitute centres of knowledge and excellence. Therefore, their role in the regional economic transformation should be essential. To achieve that objective we have analyzed the situation of two very different centres within the region. The University of Seville is large (more than 60.000 students), old, and located in the greatest metropolitan area in the region. The University of Jaén is new, small (15.000 students), and located in a medium-sized city. Therefore, the existing differences among them may explain some of the factors that would be influencing those entrepreneurial attitudes. From that viewpoint, universities would play a very significant role in entrepreneurial promotion. Indeed, they cannot only guide their students toward self-employment. They can also offer specific training for the creation and dynamism of enterprises -“entrepreneurial education”-. However, Andalusian universities are playing a very limited role in this field so far. Finally, this work is framed within a research project aimed at contributing to the development of economic policy measures that might be more effective to promote the emergence of new entrepreneurs, especially of more dynamic entrepreneurs. Therefore, this project would move along the lines of reports as that of the European Commission (2003): Green Paper Entrepreneurship in Europe.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p161&r=ino
  31. By: Per Botolf Maurseth; Björn Frank
    Abstract: Many advocates of an active regional economic policy tend to consider regional sectoral concentration as something which can be created, as a recipe rather than just a development which sometimes occurs and sometimes not. Whether such a policy can be successful implicitly depends on a number of assumptions which are empirically tested in this paper: The first assumption is that regional concentration and regional specialisation foster growth. We test this hypothesis, using data for nine ICT industries in 97 German regions. According to preliminary results, the effect of concentration is positive as expected, but small and its significance depends on specification and industry. Second, the common perception is that East Germany is still a special case. This is clearly supported for the ICT industry, which lacks behind not only with respect to level, but also with respect to growth rates for 1998 to 2002. Third, if regional sectoral agglomeration is an advantage for regions due to technological externalities, for example, then the same reasons might lead to spillover effects between neighbouring regions. With Myrdal we call this a "spread effect". However, the opposite, called "backwash effect" by Myrdal, is also well possible: If a certain sector is growing in region A, that might be due to firms moving in from the neighbouring regions. While the spread effect is the more popular hypothesis, we find evidence for both effects, using standard spatial econometrics techniques. We also discuss the possible reasons why neighbourhood effects are positive in some ICT industries and negative in others. Forth, we investigate whether regional economic policy has a positive impact. Again using spatial econometrics techniques, not so standard in this case, our preliminary results show that the 16 German Laender seem not able to do change the path which is determined for the ICT industries by spatial and other variables.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p388&r=ino
  32. By: Brendan M. Cunningham (United States Naval Academy)
    Abstract: Markets for information and entertainment are frequently characterized by increasing returns to scale in production and distribution. This implies that incumbent technologies enjoy an advantage over newcomer technologies; such markets can become locked into an inferior technology. Governments often heavily influence media markets through both direct ownership and censorship. I present a dynamic model with heterogeneity among consumers and firms in order to analyze the role of censorship in media markets. I assume there is a negative consumption externality across consumers and a negative cost spillover which an incumbent producer imposes on a newcomer. In a decentralized equilibrium, there is over-production of media from the incumbent technology. This reduces consumer utility and engenders lock-in of the inferior incumbent technology. I model censorship as a tax on information produced under the incumbent technology. A central planner who censors incumbent media can improve upon the decentralized equilibrium by reducing negative consumption externalities and unlocking the superior technology. I also show that censorship is only Pareto optimal when coupled with lump-sum transfers across consumers.
    Date: 2005–08
    URL: http://d.repec.org/n?u=RePEc:usn:usnawp:10&r=ino
  33. By: Ron Boschma; Koen Frenken
    Abstract: This paper explains the main commonalities and differences between neoclassical, institutional and evolutionary approaches that have been influential in economic geography during the last couple of decades. For all three approaches, we argue that they are in agreement in some respects and in conflict in other respects. While explaining to what extent and in what ways the Evolutionary Economic Geography approach differs from the Neoclassical (or ‘new’) Economic Geography and the Institutional Economic Geography, we can specify the value-added of economic geography as an evolutionary science. Finally, we briefly outline a research agenda of the Evolutionary Economic Geography we like to explore.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p393&r=ino
  34. By: Fernando Barreiro-Pereira
    Abstract: This paper analyses how several spatial variables coming from cities and transportation system can affect money market, specially the income velocity of circulation, assuming an unit-elastic aggregate demand function and considering money velocity as a variable. Fluctuations in velocity caused by some spatial variables, under certain conditions, can affect the aggregate demand curve. The specification of the main relation-ship has found in the Baumol-Tobin model for transaction money demand, and in Christaller-Lösch central place theory. The estimation of the model has been based on panel data techniques and applied across 61 countries during 14 years in the 1978-1991 period. Theoretical and econometric results indicates that seven spatial variables like the country’s first city population, the population density, the passengers-kilometer transported by railways, and several ratios referred to some geographical variables, can provokes fluctuations on aggregate demand curve in the short run. In the long run, the aggregate supply can be also affected by means of these variables. In order to checking this question, considering that these spatial variables are not product factor, we propose to observe if these variables can affect the technological progress coefficient, A, concerning to an aggregate production function, according to a neo-classical growth model. Results by means of the Mankiw, Romer and Weil method, and also by means of an endogenous growth model of technology diffusion, indicates that some spatial variables affect the speed of convergence relative to the real per head income, across these 61 countries. However, a certain amount in some of these variables generates a congestion process in some countries. For checking it, we utilize a Barro and Sala i Martin endogenous growth model which reflects government activities. The concluding remarks indicates that some of these spatial variables above mentioned increases the speed of convergence but generates congestion in some countries. These spatial variables also affect the aggregate supply, and hence the price and output levels. Key words: transportation, regional growth, convergence, congestion. JEL Class.: R41
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p278&r=ino

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