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How Knowledge-Based Local and Global Networks Foster Innovations in Rural Areas

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  • Gesine Tuitjer
  • Patrick Küpper

Abstract

This paper deals with innovative entrepreneurs in rural areas, and the knowledge-related processes of business development in an institutionally thin region. It is well-known that businesses in peripheral areas benefit from extra-local knowledge flows. Here, we add to this literature through a focus on micro-businesses and through a fine-grained analysis of the interplay of different types of knowledge throughout the stages of the innovation biography. We present findings from three explorative case studies from the rural northeast of Germany. The results show that extra-local knowledge sparks the seed innovative idea and is important in marketing the final craft-product, but local ties are relevant in the actual production process. We conclude that global knowledge flows are conducive to innovation processes even of micro-businesses in peripheral areas. Therefore, rural development should not focus exclusively on fostering local networks. JEL Codes: O31, R11

Suggested Citation

  • Gesine Tuitjer & Patrick Küpper, 2020. "How Knowledge-Based Local and Global Networks Foster Innovations in Rural Areas," Journal of Innovation Economics, De Boeck Université, vol. 0(3), pages 9-29.
    • Handle: RePEc:cai:jiedbu:jie_033_0009
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    Citations

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    Cited by:

    1. Secinaro, Silvana & Brescia, Valerio & Lanzalonga, Federico & Santoro, Gabriele, 2022. "Smart city reporting: A bibliometric and structured literature review analysis to identify technological opportunities and challenges for sustainable development," Journal of Business Research, Elsevier, vol. 149(C), pages 296-313.
    2. Sven Kevin van Langen & Renato Passaro, 2021. "The Dutch Green Deals Policy and Its Applicability to Circular Economy Policies," Sustainability, MDPI, vol. 13(21), pages 1-17, October.
    3. Hädrich, Tobias & Reher, Leonie & Thomä, Jörg, 2023. "Solving the puzzle? An innovation mode perspective on lagging regions," ifh Working Papers 42/2023, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).

    More about this item

    Keywords

    Innovation; Rural Areas; Peripheral Areas; Knowledge base; Craft-Food;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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