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Local knowledge spillovers, innovation and export performance in developing countries: empirical evidence from the Uruguay software cluster

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  • Effie Kesidou
  • Adam Szirmai

Abstract

This paper examines the importance of local knowledge spillovers for the innovative and export performance of firms in a developing country context. Theoretical and empirical studies in advanced economies underline the significance of local knowledge spillovers for innovation. However, not much is known about whether local knowledge spillovers work similarly in developing countries. This analysis is based on an original innovation survey in the software industry in Uruguay. The survey focuses on the direct identification and measurement of local knowledge spillovers; pure knowledge spillovers are distinguished from commercial knowledge transactions. Both knowledge spillovers and knowledge transactions are measured at the local and at the international level. The study concludes that local knowledge spillovers play a crucial role in enhancing the innovative performance of software firms in Uruguay. However, for the export performance of the firms, international knowledge transactions turn out to be more important than local knowledge spillovers. Local knowledge spillovers may be essential for innovation, but not sufficient for economic success. Firms in developing countries need to be connected to both the local and the international economy. Cet article s'interesse a l'importance des transferts de connaissance au niveau local au regard des performances en matiere d'innovation et a l'exportation des entreprises, dans le cas d'un pays en developpement. Des etudes theoriques et empiriques dans les pays developpes soulignent l'importance des transferts de connaissances au niveau local en ce qui concerne l'innovation. Cependant, il est difficile de dire si ces retombees operent de facon similaire dans les pays en developpement. Cette analyse est basee sur une enquete originale portant sur l'innovation dans l'industrie du logiciel en Uruguay. L'enquete porte plus particulierement sur l'identification et la mesure des transferts locaux de connaissance. Cette etude conclut que ces retombees jouent un role determinant dans le renforcement de la performance en matiere d'innovation des entreprises produisant des logiciels en Uruguay. Cependant, a propos de la performance a l'exportation des entreprises, les transferts internationaux de connaissances deviennent plus importants que les transferts de connaissances au niveau local. Ces derniers sont probablement essentiels pour l'innovation mais insuffisants pour le succes economique. Les entreprises des pays en developpement doivent etre en lien tant avec l'economie locale que l'economie internationale.

Suggested Citation

  • Effie Kesidou & Adam Szirmai, 2008. "Local knowledge spillovers, innovation and export performance in developing countries: empirical evidence from the Uruguay software cluster," The European Journal of Development Research, Taylor and Francis Journals, vol. 20(2), pages 281-298.
    • Handle: RePEc:taf:eurjdr:v:20:y:2008:i:2:p:281-298
    DOI: 10.1080/09578810802060769
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    Cited by:

    1. Shigeno, Hidenori & Bunno, Teruyuki & Abu Taher, Sheikh & Tsuji, Masatsugu, 2020. "R&D and ICT in the Innovation Process of Japanese Innovative SMEs: Panel Data Analysis Based on Firm-Level Survey Data," ITS Conference, Online Event 2020 224875, International Telecommunications Society (ITS).
    2. Masatsugu Tsuji & Hiroki Idota & Yasushi Ueki & Hidenori Shigeno & Teruyuki Bunno, 2016. "Connectivity in the Technology Transfer Process among Local ASEAN Firms," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 10(3), September.
    3. Jean Guinet & Dirk Meissner, 2012. "Open Innovation: Implications for Corporate Strategies, Government Policy and International R&D Spillovers," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 6(1), pages 26-36.
    4. Alexis Habiyaremye, 2008. "Economic Proximity and Technology Flows: South Africa's Influence and the Role of Technological Interaction in Botswana's Diversification Effort," WIDER Working Paper Series RP2008-92, World Institute for Development Economic Research (UNU-WIDER).
    5. Alexis Habiyaremye, 2019. "Enhancing productive capabilities through intra-regional trade and cross-border investments in Southern Africa," Development Southern Africa, Taylor & Francis Journals, vol. 36(4), pages 409-425, July.
    6. Matsuzaki, Taisuke & Shigeno, Hidenori & Taher, Sheikh Abu & Tsuji, Masatsugu, 2022. "Relationship between Innovation and Corporate Performance in Japanese SMEs by Two-stage Panel Data Analysis: Focusing on the Joint Effect of ICT and R&D," 31st European Regional ITS Conference, Gothenburg 2022: Reining in Digital Platforms? Challenging monopolies, promoting competition and developing regulatory regimes 265659, International Telecommunications Society (ITS).
    7. Idota, Hiroki & Bunno, Teruyuki & Ueki, Yasushi & Shinohara, Sobee, 2015. "Empirical Analysis of Factors Promoting Product Innovation in ASEAN Economies: Focusing on Absorptive Capacity and ICT Use," 26th European Regional ITS Conference, Madrid 2015 127150, International Telecommunications Society (ITS).
    8. Idota, Hiroki & Ueki, Yasushi & Shigeno, Hidenori & Bunno, Teruyuki & Tsuji, Masatsugu, 2016. "Empirical Analysis on Human Resource Management and ICT Use for Product Innovation among Firms in ASEAN Economies," 27th European Regional ITS Conference, Cambridge (UK) 2016 148675, International Telecommunications Society (ITS).
    9. Ana Moreno-Monroy, 2012. "Critical Commentary. Informality in Space: Understanding Agglomeration Economies during Economic Development," Urban Studies, Urban Studies Journal Limited, vol. 49(10), pages 2019-2030, August.
    10. Taisuke Matsuzaki & Hidenori Shigeno & Teruyuki Bunno & Hiroki Idota & Masatsugu Tsuji, 2023. "The Relationship Between Innovation and Corporate Performance in Japanese SMEs by Two-Stage Panel Data Analysis: Focusing on the Joint Effect of ICT and R&D," The Review of Socionetwork Strategies, Springer, vol. 17(1), pages 55-71, April.
    11. Alberto Portugal & Jose-Daniel Reyes & Gonzalo Varela, 2015. "Uruguay," World Bank Publications - Reports 23349, The World Bank Group.
    12. Dirk Meissner, 2012. "The Economic Impact of Spillovers from R&D and Innovation," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 6(4), pages 20-31.
    13. Elias G. Carayannis & Dirk Meissner, 2017. "Glocal targeted open innovation: challenges, opportunities and implications for theory, policy and practice," The Journal of Technology Transfer, Springer, vol. 42(2), pages 236-252, April.
    14. Kesidou, Effie & Szirmai, Adam, 2008. "Local Knowledge Spillovers, Innovation and Economic Performance in Developing Countries: A discussion of alternative specifications," MERIT Working Papers 2008-033, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    15. Idota, Hiroki & Ueki, Yasushi & Bunno, Teruyuki & Shinohara, Sobee & Tsuji, Masatsugu, 2014. "Role of ICT in the innovation process based on firm-level evidence from four ASEAN economies: An SEM approach," 25th European Regional ITS Conference, Brussels 2014 101397, International Telecommunications Society (ITS).
    16. Teodora Corsatea & Hubert Jayet, 2014. "Spatial patterns of innovation activities in France: market’s role versus public research efforts," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(3), pages 739-762, May.
    17. Tsuji, Masatsugu & Ueki, Yasushi & Shigeno, Hidenori & Bunno, Teruyuki & Idota, Hiroki, 2018. "ICT and Two Categories of R&D in the Innovation Process among Firms in ASEAN Countries Based on Firm-level Survey Data," 29th European Regional ITS Conference, Trento 2018 184970, International Telecommunications Society (ITS).

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