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A Model of a Firm’s Innovation and Growth in a Knowledge-Based Economy

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  • Hamid Seddighi

Abstract

Knowledge-based economies use knowledge as an input of production to produce knowledge-intensive products and services. In such economies, a firm’s growth crucially depends on knowledge accumulation, technical change and the resulting innovation activities. To achieve sustained growth, a firm must keep on innovating. A firm’s core competence and its refinement and development over time play a crucial role in a firm’s innovation activities and its growth. In this paper, a conceptual framework of a firm’s innovation and growth in knowledge-based economy is presented. This framework is based on a firm’s core competence and its development over time within a firms’ cluster. This model is empirically estimated and evaluated, in a pilot study, via a data set from a manufacturing cluster of 128 firms operating in the North East England. The empirical results provide some support for the proposed framework. In particular, it is found that the conditional probability that a firm undertakes R&D activity to innovate in such a cluster of firms is over 70 %. Copyright Springer Science+Business Media New York 2015

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  • Hamid Seddighi, 2015. "A Model of a Firm’s Innovation and Growth in a Knowledge-Based Economy," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(2), pages 215-227, June.
    • Handle: RePEc:spr:jknowl:v:6:y:2015:i:2:p:215-227
    DOI: 10.1007/s13132-012-0136-1
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    References listed on IDEAS

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    Cited by:

    1. Davide Dell’Anno & Federica Evangelista & Manlio Del Giudice, 2018. "Internationalization of Science-Based Start-Ups: Opportunity or Requirement?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(2), pages 649-664, June.
    2. Antonio L. Leal-Rodríguez & Stephen Eldridge & José Antonio Ariza-Montes & Emilio J. Morales-Fernández, 2019. "Understanding How Organizational Culture Typology Relates to Organizational Unlearning and Innovation Capabilities," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(4), pages 1497-1514, December.

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