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Extra-regional linkages through MNCs in organizationally thick and specialized RISs: a source of new path development?

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  • Heidi Wiig Aslesen
  • Katja Maria Hydle
  • Kristin Wallevik

Abstract

This paper explores how global innovation networks (GIN) within multinational companies (MNCs) act as extra-regional sources for path development in a regional innovation system (RIS) specializing in the oil and gas sector. We combine the literature on intra-firm knowledge dynamics in MNCs’ GIN with the literature on RISs to better understand their interrelatedness and their dynamics. Based on interviews with 15 MNCs located in the south-west of Norway, we find that firms are highly dependent on competence throughout the MNCs’ entire networks, as well as interaction with the overall RIS. The findings expose that MNCs’ GINs can act as extra-regional sources for path ‘extension’ in thick and specialized RISs through intra-firm mobility, observation and sharing of routines and best practice, mainly resulting in incremental innovations. We find some signs of potential path ‘renewal’, including radical innovation ideas. However, there are hampering factors linked to strong internal competition for innovation projects, pressure for local profitability and ownership motivation. At the level of RISs, new initiatives going beyond existing cluster initiatives and specializations need support.

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  • Heidi Wiig Aslesen & Katja Maria Hydle & Kristin Wallevik, 2017. "Extra-regional linkages through MNCs in organizationally thick and specialized RISs: a source of new path development?," European Planning Studies, Taylor & Francis Journals, vol. 25(3), pages 443-461, March.
    • Handle: RePEc:taf:eurpls:v:25:y:2017:i:3:p:443-461
    DOI: 10.1080/09654313.2016.1273322
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    References listed on IDEAS

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    1. Liu, Ju, 2015. "A Case Study on Multinational Companies’ Global Innovation Networks and Global Production Networks: Toward a Theoretical Conceptualisation," Papers in Innovation Studies 2015/45, Lund University, CIRCLE - Centre for Innovation Research.
    2. Trippl , Michaela & Grillitsch , Markus & Isaksen , Arne, 2015. "External “energy” for regional industrial change: attraction and absorption of non-local knowledge for new path development," Papers in Innovation Studies 2015/47, Lund University, CIRCLE - Centre for Innovation Research.
    3. Frank Neffke & Matté Hartog & Ron Boschma & Martin Henning, 2018. "Agents of Structural Change: The Role of Firms and Entrepreneurs in Regional Diversification," Economic Geography, Taylor & Francis Journals, vol. 94(1), pages 23-48, January.
    4. J. Herstad , Sverre & Ebersberger , Bernd & Asheim, Bjørn, 2013. "MNC affiliation, knowledge bases and involvement in global innovation networks," Papers in Innovation Studies 2013/12, Lund University, CIRCLE - Centre for Innovation Research.
    5. Liu , Ju & Liefner , Ingo, 2016. "The Joint Influencing Mechanism of Proximities and Knowledge Base on Multinational Companies’ Global Innovation Networks," Papers in Innovation Studies 2016/4, Lund University, CIRCLE - Centre for Innovation Research.
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    Cited by:

    1. Robert Hassink & Arne Isaksen & Michaela Trippl, 2019. "Towards a comprehensive understanding of new regional industrial path development," Regional Studies, Taylor & Francis Journals, vol. 53(11), pages 1636-1645, November.
    2. Zhu, Zhuo-Yue & Xie, Hong-Ming & Chen, Liang, 2023. "ICT industry innovation: Knowledge structure and research agenda," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    3. Khalil Rhaiem & Nabil Amara, 2021. "Learning from innovation failures: a systematic review of the literature and research agenda," Review of Managerial Science, Springer, vol. 15(2), pages 189-234, February.
    4. Martin, Roman & Wiig Aslesen, Heidi & Grillitsch, Markus & Herstad, Sverre, 2017. "Regional Innovation Systems and Global Flows of Knowledge," Papers in Innovation Studies 2017/7, Lund University, CIRCLE - Centre for Innovation Research.

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