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Knowledge Spillovers and Absorptive Capacity—Institutional Evidence from the “German Mittelstand”

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  • Till Proeger

    (University of Goettingen)

Abstract

Recent extensions to the knowledge spillover theory of entrepreneurship (KSTE) show that the successful commercialization of new knowledge by incumbents depends on their absorptive capacities. For policy-makers focusing on increasing incumbents’ innovative performance, the systematic reduction of knowledge filter through improved absorptive capacities thus becomes a crucial goal. While the general working mechanisms of knowledge filter have been analyzed within the KSTE framework, few institutional solutions to increase absorptive capacities have been put forth. This study provides an initial case study explaining a specific institutional framework fostering the systematic penetration of knowledge filters by incumbent firms in the case of German SMEs. Using a set of 177 in-depth interviews with firm representatives, the system of interrelated organizations, institutional arrangements, shared values, and economic incentives associated with the institutional structures for knowledge spillovers for German SMEs are described. I identify institutional characteristics connected to the dual system of vocational training, regulatory measures, and economic incentives mutually enforcing and fostering broad knowledge spillovers. This exploratory approach enables deriving hypotheses for the further study of knowledge filters as well as policy implications for the design of institutions increasing incumbents’ absorptive capacities.

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  • Till Proeger, 2020. "Knowledge Spillovers and Absorptive Capacity—Institutional Evidence from the “German Mittelstand”," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(1), pages 211-238, March.
    • Handle: RePEc:spr:jknowl:v:11:y:2020:i:1:d:10.1007_s13132-018-0539-8
    DOI: 10.1007/s13132-018-0539-8
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    2. Xiuying Ma & Fei Jia & Hong Jiang & Xiangyun Xu, 2022. "The Impact of Non-R&D Intangible Capital on TFP Growth: Evidence from Multi-country Industry Level Data," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2890-2910, December.
    3. Ioanna Kastelli & Petros Dimas & Dimitrios Stamopoulos & Aggelos Tsakanikas, 2024. "Linking Digital Capacity to Innovation Performance: the Mediating Role of Absorptive Capacity," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 238-272, March.
    4. Lattacher, Wolfgang & Gregori, Patrick & Holzmann, Patrick & Schwarz, Erich J., 2021. "Knowledge spillover in entrepreneurial emergence: A learning perspective," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    5. Jing Fan & Jiafu Su & Stavros Sindakis, 2024. "Customer Need Knowledge Facilitates Market Opportunity Recognition Through Absorptive Capacity and Technological Knowledge: Evidence from the IT Sector in China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2192-2217, March.
    6. Erik E. Lehmann & Matthias Menter & Katharine Wirsching, 2022. "University spillovers, absorptive capacities, and firm performance," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(1), pages 125-150, March.
    7. Ferreira, João J.M. & Fernandes, Cristina I. & Veiga, Pedro Mota, 2024. "The effects of knowledge spillovers, digital capabilities, and innovation on firm performance: A moderated mediation model," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    8. Matthies, Eike & Thomä, Jörg & Bizer, Kilian, 2022. "A hidden source of innovation? Revisiting the impact of initial vocational training on technological innovation," ifh Working Papers 33/2022, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh), revised 2022.
    9. Proeger, Till & Alhusen, Harm & Meub, Lukas & Bizer, Kilian, 2024. "Handwerk in regionalen Innovationssystemen: Eine Webscraping-Analyse," ifh Forschungsberichte 26, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    10. Proeger, Till & Meub, Lukas & Bizer, Kilian, 2021. "Webscraping als Instrument zur tagesaktuellen und umfassenden digitalen Analyse des Handwerks," Göttinger Beiträge zur Handwerksforschung 55, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).

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    More about this item

    Keywords

    Entrepreneurship; Knowledge filter; Knowledge spillover theory of entrepreneurship; Networks; Small and medium enterprises;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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