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Taking The First Step — What Determines German Laser Source Manufacturers Entry Into Innovation Networks?

Author

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  • MUHAMED KUDIC

    (Department for Economic and Statistical Analyses, Stifterverband, Association for the Promotion of Sciences and Education in Germany, Germany)

  • ANDREAS PYKA

    (Chair for Economics of Innovation, University of Hohenheim, Germany)

  • JUTTA GUENTHER

    (Chair for Economics of Innovation and Structural Change, University of Bremen, Germany)

Abstract

Early access to technological knowledge embodied in an industry's innovation network can prove an important competitive advantage for firms. Surprisingly, not much is known about the determinants of their initial entry into such networks. We analyze the propensity of firms for entering the industry's innovation network and their timing in doing so. More precisely, we seek to shed some light on the factors affecting the length of the time-span between a firm's founding and its first cooperation event. We apply a unique longitudinal event history dataset based on the full population of German laser source manufacturers. Innovation network data stem from official databases providing detailed information on the organizations involved, the subject of joint research and development (R&D) efforts, as well as the start and end times of all publicly funded R&D projects between 1990 and 2010. Estimation results from an event history estimation model indicate that micro firms enter the network later than small or large firms. An in-depth analysis of the size effects for medium-sized firms provides some unexpected but highly interesting findings. The choice of cooperation type makes no significant difference to a firm's timing in entering the network. Finally, the analysis of geographical determinants shows that cluster membership can, but does not necessarily affect the timing of a firm's decision to cooperate.

Suggested Citation

  • Muhamed Kudic & Andreas Pyka & Jutta Guenther, 2015. "Taking The First Step — What Determines German Laser Source Manufacturers Entry Into Innovation Networks?," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 19(05), pages 1-26.
  • Handle: RePEc:wsi:ijimxx:v:19:y:2015:i:05:n:s1363919615500504
    DOI: 10.1142/S1363919615500504
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    References listed on IDEAS

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    1. Ron Boschma & Ron Martin (ed.), 2010. "The Handbook of Evolutionary Economic Geography," Books, Edward Elgar Publishing, number 12864.
    2. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    3. Cristiano Antonelli (ed.), 2011. "Handbook on the Economic Complexity of Technological Change," Books, Edward Elgar Publishing, number 13391.
    4. Horst Hanusch & Andreas Pyka (ed.), 2007. "Elgar Companion to Neo-Schumpeterian Economics," Books, Edward Elgar Publishing, number 2973.
    5. Thomas Scherngell & Michael J. Barber, 2009. "Spatial interaction modelling of cross‐region R&D collaborations: empirical evidence from the 5th EU framework programme," Papers in Regional Science, Wiley Blackwell, vol. 88(3), pages 531-546, August.
    6. Muhamed Kudic, 2015. "Innovation Networks in the German Laser Industry," Economic Complexity and Evolution, Springer, edition 127, number 978-3-319-07935-6, December.
    7. Elisa Giuliani, 2010. "Network dynamics in regional clusters: The perspective of an emerging economy," Papers in Evolutionary Economic Geography (PEEG) 1014, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2010.
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    Cited by:

    1. Michael Fritsch & Muhamed Kudic, 2016. "Preferential Attachment and Pattern Formation in R&D Networks - Plausible explanation or just a widespread myth?," Jena Economics Research Papers 2016-005, Friedrich-Schiller-University Jena.

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