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Industry Specialization, Diversity and the Efficiency of Regional Innovation Systems

In: Determinants of Innovative Behaviour

Author

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  • Michael Fritsch
  • Viktor Slavtchev

Abstract

Innovating firms are not isolated, self-sustained entities but rather are highly linked to their environment. This embeddedness can have a considerable effect on innovation processes, and it is not very far-fetched to assume that not all kinds of environment are equally well suited to a certain type of research and development (R&D) activity. There are two prominent hypotheses that pertain to the sectoral structure of the regional environment. One of these hypotheses states that the geographic concentration of firms that belong to the same industry or to related industries is conducive to innovation. The other hypothesis assumes that it is the diversity of industries and activities in a region, not the concentration of similar industries, that has a stimulating effect.

Suggested Citation

  • Michael Fritsch & Viktor Slavtchev, 2008. "Industry Specialization, Diversity and the Efficiency of Regional Innovation Systems," Palgrave Macmillan Books, in: Cees Beers & Alfred Kleinknecht & Roland Ortt & Robert Verburg (ed.), Determinants of Innovative Behaviour, chapter 12, pages 272-293, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-28573-6_12
    DOI: 10.1057/9780230285736_12
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    Cited by:

    1. Michael Fritsch & Viktor Slavtchev, 2007. "What determines the efficiency of regional innovation systems?," Jena Economics Research Papers 2007-006, Friedrich-Schiller-University Jena.
    2. Schimke, Antje & Teichert, Nina & Ott, Ingrid, 2012. "Impact of local knowledge endowment on employment growth in nanotechnology," Working Paper Series in Economics 38, Karlsruhe Institute of Technology (KIT), Department of Economics and Management.
    3. Valerien O. Pede & Raymond J. G. M. Florax & Henri L. F. de Groot & Gustavo Barboza, 2021. "Technological leadership and sectorial employment growth: A spatial econometric analysis for U.S. counties," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 50(1), February.

    More about this item

    Keywords

    Technical Efficiency; Innovation Activity; Knowledge Spillover; Industry Specialization; External Organization;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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