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Firm Performance, Innovation Modes and Territorial Embeddedness

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  • Sérgio Nunes
  • Raul Lopes

Abstract

This paper seeks to identify different innovation modes and their territorial embeddedness, relating them to firms' innovative and economic performance. We also analyse the relationship between the different innovation modes and the economic impact of the crisis on firms' performance. These relationships are tested by regression and latent class models for the Portuguese population of firms, using a sample of 397 firms classified according to technological intensity, size and region. Our results show three different innovation modes: a DUI (Doing, Using and Interacting) mode, an STI (Science, Technology and Innovation) mode and a TEI (Territorial Embeddedness Innovation) mode in which territory plays a key role. These innovative modes are related in different ways to firms' economic and innovative performance and also have marked distinctions in terms of resilience to the economic crisis. These findings lead to a reflection on regional innovation policy in the European context.

Suggested Citation

  • Sérgio Nunes & Raul Lopes, 2015. "Firm Performance, Innovation Modes and Territorial Embeddedness," European Planning Studies, Taylor & Francis Journals, vol. 23(9), pages 1796-1826, September.
    • Handle: RePEc:taf:eurpls:v:23:y:2015:i:9:p:1796-1826
    DOI: 10.1080/09654313.2015.1021666
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    Cited by:

    1. Beynon, Malcolm & Pickernell, David & Battisti, Martina & Jones, Paul, 2024. "A panel fsQCA investigation on European regional innovation," Technological Forecasting and Social Change, Elsevier, vol. 199(C).
    2. Alhusen, Harm, 2020. "Experience-based know-how, learning and innovation in German SMEs: An explorative analysis of the role of know-how in different modes of innovation," ifh Working Papers 27/2020, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    3. Petrik Runst & Jörg Thomä, 2022. "Does personality matter? Small business owners and modes of innovation," Small Business Economics, Springer, vol. 58(4), pages 2235-2260, April.
    4. Miguel Gonzalez-Loureiro & Maria José Sousa & Hugo Pinto, 2017. "Culture and innovation in SMEs: the intellectual structure of research for further inquiry," European Planning Studies, Taylor & Francis Journals, vol. 25(11), pages 1908-1931, November.
    5. Haus-Reve, Silje & Fitjar, Rune Dahl & Rodríguez-Pose, Andrés, 2019. "Does combining different types of collaboration always benefit firms? Collaboration, complementarity and product innovation in Norway," Research Policy, Elsevier, vol. 48(6), pages 1476-1486.
    6. Alhusen, Harm & Bennat, Tatjana & Bizer, Kilian & Cantner, Uwe & Horstmann, Elaine & Kalthaus, Martin & Proeger, Till & Sternberg, Rolf G. & Töpfer, Stefan, 2019. "Measuring the "doing-using-interacting mode" of innovation in SMEs - A qualitative approach," ifh Working Papers 23/2019, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    7. Sérgio Nunes & Raul Lopes & Nerys Fuller-Love, 2019. "Networking, Innovation, and Firms’ Performance: Portugal as Illustration," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(3), pages 899-920, September.
    8. Riccardo Leoncini & Giulia Vecchiato & Luca Zamparini, 2020. "Triggering cooperation among firms: an empirical assessment of the Italian Network Contract Law," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(2), pages 357-380, July.
    9. Marcel Ausloos & Francesca Bartolacci & Nicola G. Castellano & Roy Cerqueti, 2020. "Simple approaches on how to discover promising strategies for efficient enterprise performance, at time of crisis in the case of SMEs : Voronoi clustering and outlier effects perspective," Papers 2012.14297, arXiv.org.
    10. Alhusen, Harm & Bennat, Tatjana, 2019. "Innovation modes in SMEs: Mechanisms integrating STI-processes into DUI-mode learning and the role of regional innovation policy," ifh Working Papers 21/2019, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    11. Silje Haus-Reve & Rune Dahl Fitjar & Andrés Rodríguez-Pose, 2023. "DUI it yourself: Innovation and activities to promote learning by doing, using, and interacting within the firm," Industry and Innovation, Taylor & Francis Journals, vol. 30(8), pages 1008-1028, September.
    12. Tatjana Bennat, 2022. "High Innovativeness of SMEs and the Configuration of Learning-by-Doing, Learning-by-Using, Learning-by-Interacting, and Learning-by-Science: a Regional Comparison Applying Fuzzy Qualitative Comparativ," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(2), pages 1666-1691, June.
    13. Thomä, Jörg & Zimmermann, Volker, 2019. "Non-R&D, interactive learning and economic performance: Revisiting innovation in small and medium enterprises," ifh Working Papers 17/2019, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    14. Hervas-Oliver, Jose-Luis & Parrilli, Mario Davide & Sempere-Ripoll, Francisca, 2021. "SME modes of innovation in European catching-up countries: The impact of STI and DUI drivers on technological innovation," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    15. Parrilli, Mario Davide & Balavac, Merima & Radicic, Dragana, 2020. "Business innovation modes and their impact on innovation outputs: Regional variations and the nature of innovation across EU regions," Research Policy, Elsevier, vol. 49(8).
    16. Marcel Ausloos & Francesca Bartolacci & Nicola G. Castellano & Roy Cerqueti, 2018. "Exploring how innovation strategies at time of crisis influence performance: a cluster analysis perspective," Papers 1808.05893, arXiv.org.
    17. Alhusen, Harm & Bennat, Tatjana & Bizer, Kilian & Cantner, Uwe & Horstmann, Elaine & Kalthaus, Martin & Proeger, Till & Sternberg, Rolf & Töpfer, Stefan, 2021. "A New Measurement Conception for the ‘Doing-Using-Interacting’ Mode of Innovation," Research Policy, Elsevier, vol. 50(4).
    18. Liang, Liang & Alam, Ashraful & Sorwar, Ghulam & Yazdifar, Hassan & Eskandari, Rasol, 2021. "The combined network effect of sparse and interlocked connections in SMEs’ innovation," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    19. Doloreux, David & Shearmur, Richard, 2023. "Does location matter? STI and DUI innovation modes in different geographic settings," Technovation, Elsevier, vol. 119(C).
    20. Wenying Fu & Javier Revilla Diez & Daniel Schiller, 2017. "Determinants of Networking Practices in the Chinese Transition Context: Empirical Insights from the Pearl River Delta," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 108(2), pages 205-219, April.
    21. Rodríguez-Pose, Andrés & Haus-Reve, Silje & Fitjar, Rune, 2019. "Does combining different types of collaboration always benefit firms? Collaboration, complementarity and product innovation in," CEPR Discussion Papers 13622, C.E.P.R. Discussion Papers.

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