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Innovation Ideas and Regional Characteristics: Product Innovations and Export Entrepreneurship by Firms in Swedish Regions

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  • MARTIN ANDERSSON
  • BÖRJE JOHANSSON

Abstract

ABSTRACT This paper focuses upon the ways in which characteristics of regions in regards to knowledge sources, communication opportunities, and absorptive capacity influence the development of innovation ideas among existing and potential entrepreneurs. We formulate a model where entrepreneurs or innovating firms introduce new products in a quasi‐temporal setting. Market conditions are characterised by monopolistic competition between varieties belonging to the same product group, in which there is entry and exit of varieties. A stochastic process is assumed to generate new innovation ideas as time goes by, and a firm (entrepreneur) who receives such an idea has to transform the idea to an innovation, which in the model is specified as a particular variety combined with a specific destination market. The theoretical model is used as a reference when formulating two regression models, with which we estimate how a set of regional characteristics are associated with the likelihood of innovation ideas across Swedish local labour market regions. In one model, we examine the emergence of new export varieties, and in the second model, we investigate the appearance of new export firms. Results are consistent with the assumption that knowledge and information flows have a positive influence on the frequency of arrival of innovation ideas to firms.

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  • Martin Andersson & Börje Johansson, 2008. "Innovation Ideas and Regional Characteristics: Product Innovations and Export Entrepreneurship by Firms in Swedish Regions," Growth and Change, Wiley Blackwell, vol. 39(2), pages 193-224, June.
    • Handle: RePEc:bla:growch:v:39:y:2008:i:2:p:193-224
    DOI: 10.1111/j.1468-2257.2008.00417.x
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    7. Martin Andersson & Lina Bjerke & Charlie Karlsson, 2014. "Imports and regional development," Chapters, in: Charlie Karlsson & Börje Johansson & Kiyoshi Kobayashi & Roger R. Stough (ed.), Knowledge, Innovation and Space, chapter 4, pages 80-102, Edward Elgar Publishing.
    8. Börje Johansson & Johan Klaesson, 2011. "Creative Milieus in the Stockholm Region," Chapters, in: David Emanuel Andersson & Åke E. Andersson & Charlotta Mellander (ed.), Handbook of Creative Cities, chapter 23, Edward Elgar Publishing.
    9. Johansson, Börje & Johansson, Sara & Wallin, Tina, 2013. "Internal and External Knowledge – Innovation of Export Varieties," Working Paper Series in Economics and Institutions of Innovation 297, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    10. Johan Larsson & Özge Öner, 2014. "Location and co-location in retail: a probabilistic approach using geo-coded data for metropolitan retail markets," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(2), pages 385-408, March.
    11. Johansson, Börje & Lööf, Hans, 2008. "The Impact of Firm’s R&D Strategy on Profit and Productivity," Working Paper Series in Economics and Institutions of Innovation 156, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    12. Diego Martínez-López & Manuel Palazuelos-Martínez, 2019. "Breaking with the Past in Smart Specialisation: A New Model of Selection of Business Stakeholders Within the Entrepreneurial Process of Discovery," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(4), pages 1643-1656, December.
    13. Sara Johansson, 2014. "The influence of knowledge on firms’ export decisions," Chapters, in: Charlie Karlsson & Börje Johansson & Kiyoshi Kobayashi & Roger R. Stough (ed.), Knowledge, Innovation and Space, chapter 5, pages 103-138, Edward Elgar Publishing.
    14. Andersson, Martin & Johansson, Sara, 2010. "Human capital and the structure of regional export flows," Technology in Society, Elsevier, vol. 32(3), pages 230-240.
    15. Reza Naghizadeh & Shaban Elahi & Manoochehr Manteghi & Sepehr Ghazinoory & Marina Ranga, 2015. "Through the magnifying glass: an analysis of regional innovation models based on co-word and meta-synthesis methods," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(6), pages 2481-2505, November.
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