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A study on innovation capacity and entrepreneurial activity at a sub-regional level: The case of the Basque Country

Author

Listed:
  • González Pernía , José Luis

    (Instituto Vasco de Competitividad)

  • Martiarena Arrizabalaga , Aloña

    (Instituto Vasco de Competitividad, London School of Economics)

  • Navarro Arancegui , Mikel

    (Instituto Vasco de Competitividad, Universidad de Deusto)

  • Peña Legazkue , Iñaki

    (Instituto Vasco de Competitividad, Universidad de Deusto)

Abstract

We aim at gaining our understanding on the relationship between innovation capacity, entrepreneurial activity and regional competitiveness at a sub-regional level, by taking into account the heterogeneity of inner locations within a region. Our results show, on the one hand, that high and rapid growth firms benefit from local agglomeration economies which lead to incremental innovation-type R&D activities (i.e., exploitation of synthetic–knowledge) emerged in non-metropolitan areas where new ventures are more focused on “Development” activities rather than on “Research” activities. On the other hand, ventures located in metropolitan areas are more related to “Research” activities (i.e., exploration of analytical-knowledge leading to radical innovation) which particularly take place in universities and technology centers sited in urban (or nearby) areas. Any advancement on regional development will depend on a balanced concentration of different types of innovation and entrepreneurial activities at a sub-regional level considering the idiosyncrasy and singularity of each sub-region.

Suggested Citation

  • González Pernía , José Luis & Martiarena Arrizabalaga , Aloña & Navarro Arancegui , Mikel & Peña Legazkue , Iñaki, 2009. "A study on innovation capacity and entrepreneurial activity at a sub-regional level: The case of the Basque Country," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 15, pages 55-88.
    • Handle: RePEc:ris:invreg:0089
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    More about this item

    Keywords

    Innovation; entrepreneurial activity; regional competitiveness;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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