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Informal and Formal Sources of Knowledge as Drivers of Regional Innovation: Digging a Little Further into Complexity

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  • Jose M Barrutia
  • Carmen Echebarria
  • Vanessa Apaolaza-Ibáñez
  • Patrick Hartmann

Abstract

We study the combined effect of formal (FSK) and informal (ISK) sources of knowledge on European regional innovation performance. Our findings show that the effect of the two sources of knowledge on innovation performance is not simple and linear. First, both sources of knowledge have an interaction effect on innovation performance (ie, the effect of FSK on regional innovation depends on the level of access to ISK in the region, and vice versa). Second, while the effect of ISK is linear (although different for each region), the effect of the FSK (which is more intensive in monetary, time, effort, and opportunity costs) has a diminishing-returns form, and achieves a saturation point at high levels of use of FSK. Our findings also show that the balanced access to both types of sources is important and that, for instance, regions with limited access to ISK should not expect miraculous effects from high levels of FSK. To the best of our knowledge, no previous research has been reported which has empirically studied the combined effect of both sources of knowledge at a European regional level.

Suggested Citation

  • Jose M Barrutia & Carmen Echebarria & Vanessa Apaolaza-Ibáñez & Patrick Hartmann, 2014. "Informal and Formal Sources of Knowledge as Drivers of Regional Innovation: Digging a Little Further into Complexity," Environment and Planning A, , vol. 46(2), pages 414-432, February.
    • Handle: RePEc:sae:envira:v:46:y:2014:i:2:p:414-432
    DOI: 10.1068/a462
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    2. Park, Jeong-Il & Choi, Taelim, 2024. "Regional factors associated with smart factory adoption in South Korea," Technology in Society, Elsevier, vol. 77(C).
    3. Elena Calvo-Gallardo & Nieves Arranz & Juan Carlos Fernandez de Arroyabe, 2022. "Contribution of the Horizon2020 Program to the Research and Innovation Strategies for Smart Specialization in Coal Regions in Transition: The Spanish Case," Sustainability, MDPI, vol. 14(4), pages 1-28, February.
    4. Zhang, Jingjing & Groen, Aard, 2021. "Informal and formal open activities: Innovation protection methods as antecedents and innovation outputs as consequences," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    5. Carlos M. Jardon & Nilda C. Tañski & Xavier Martinez-Cobas, 2023. "Sources of knowledge for innovation capability in subsistence small businesses: a case of the wood sector in Argentina," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(3), pages 839-860, June.

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