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Firm performance in the periphery: on the relation between firm-internal knowledge and local knowledge spillovers

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  • Markus Grillitsch
  • Magnus Nilsson

Abstract

Firm performance in the periphery: on the relation between firm-internal knowledge and local knowledge spillovers. Regional Studies. One of the most established arguments in regional studies is that knowledge dynamics shape the geography of economic activities and, more specifically, that knowledge-intensive activities benefit from collocation due to knowledge spillovers, local buzz and access to labour. There are, however, competing arguments that knowledge-intensive firms also suffer from negative spillovers and are less dependent on local knowledge sources than often presumed. Using Swedish micro-data from 2005–11, this paper shows that firms with weak internal knowledge grow faster in knowledge-intensive regions. However, the growth difference disappears or is even reversed for knowledge-intensive firms.

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  • Markus Grillitsch & Magnus Nilsson, 2017. "Firm performance in the periphery: on the relation between firm-internal knowledge and local knowledge spillovers," Regional Studies, Taylor & Francis Journals, vol. 51(8), pages 1219-1231, August.
    • Handle: RePEc:taf:regstd:v:51:y:2017:i:8:p:1219-1231
    DOI: 10.1080/00343404.2016.1175554
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    2. Speldekamp, Daniël & Knoben, Joris & Saka-Helmhout, Ayse, 2020. "Clusters and firm-level innovation: A configurational analysis of agglomeration, network and institutional advantages in European aerospace," Research Policy, Elsevier, vol. 49(3).
    3. He, Qiuqin & Guijarro-Garcia, Maria & Costa-Climent, Juan, 2022. "Impact of knowledge-based capital on firm productivity: The contingent effect of ownership," Journal of Business Research, Elsevier, vol. 140(C), pages 85-94.
    4. Luca Colombo & Herbert Dawid & Philipp Harting, 2024. "R&D location in dynamic industry environments," Journal of Economic Geography, Oxford University Press, vol. 24(1), pages 41-62.
    5. Andrew Inkpen & Dana Minbaeva & Eric W K Tsang, 2019. "Unintentional, unavoidable, and beneficial knowledge leakage from the multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(2), pages 250-260, March.
    6. Alex J. Guerrero & Joost Heijs & Elena Huergo, 2023. "The effect of technological relatedness on firm sales evolution through external knowledge sourcing," The Journal of Technology Transfer, Springer, vol. 48(2), pages 476-514, April.
    7. Jakob Eder & Michaela Trippl, 2019. "Innovation in the periphery: compensation and exploitation strategies," PEGIS geo-disc-2019_07, Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business.
    8. Francesco Quatraro & Stefano Usai, 2017. "Knowledge flows, externalities and innovation networks," Regional Studies, Taylor & Francis Journals, vol. 51(8), pages 1133-1137, August.
    9. Pieter E. Stek, 2020. "Mapping high R&D city-regions worldwide: a patent heat map approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 54(1), pages 279-296, February.
    10. Anne Margarian & Cécile Détang-Dessendre & Aleksandra Barczak & Corinne Tanguy, 2022. "Endogenous rural dynamics: an analysis of labour markets, human resource practices and firm performance," SN Business & Economics, Springer, vol. 2(8), pages 1-33, August.
    11. Pindado, Emilio & Sánchez, Mercedes & García Martínez, Marian, 2023. "Entrepreneurial innovativeness: When too little or too much agglomeration hurts," Research Policy, Elsevier, vol. 52(1).
    12. 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.
    13. Vasilios Kanellopoulos & Georgios Fotopoulos, 2019. "The effect of knowledge spillovers on regional new firm formation: The Greek manufacturing case," Environment and Planning A, , vol. 51(4), pages 1005-1030, June.
    14. Denise R. Dunlap & Roberto S. Santos, 2021. "Storming the Beachhead: An Examination of Developed and Emerging Market Multinational Strategic Location Decisions in the U.S," JRFM, MDPI, vol. 14(7), pages 1-15, July.
    15. Guo, Di & Jiang, Kun & Xu, Chenggang & Yang, Xiyi, 2023. "Geographic clusters, regional productivity and resource reallocation across firms: Evidence from China," Research Policy, Elsevier, vol. 52(2).
    16. Tojeiro-Rivero, Damián & Moreno, Rosina, 2019. "Technological cooperation, R&D outsourcing, and innovation performance at the firm level: The role of the regional context," Research Policy, Elsevier, vol. 48(7), pages 1798-1808.

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    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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