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When local interaction does not suffice: Sources of firm innovation in urban Norway

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  • Rodríguez-Pose, Andrés
  • Fitjar, Rune Dahl

Abstract

The geographical sources of innovation of firms have been hotly debated. While the traditional view is that physical proximity within city-regions is key for the innovative capacity of firms, the literature on ?global pipelines? has been stressing the importance of establishing communication channels to the outside world. This paper uses a specifically tailored survey of the level of innovation of 1604 firms of more than 10 employees located in the five largest Norwegian city-regions (Oslo, Bergen, Stavanger, Trondheim, and Kristiansand) in order to determine a) the geographical dimension of the sources of innovation and b) the factors behind the propensity to innovate in Norwegian firms. The results stress that while interaction with a multitude of partners within Norwegian city-regions or with other national partners has a negligible effect on firm innovation, those firms with a greater diversity of international partners tend to innovate more and introduce more radical innovations. The results also highlight that the roots of this greater innovative capacity lie in a combination of firm--size of firms, share of foreign ownership, and sector--and cultural--the level of open-mindedness of managers--characteristics.

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  • Rodríguez-Pose, Andrés & Fitjar, Rune Dahl, 2011. "When local interaction does not suffice: Sources of firm innovation in urban Norway," CEPR Discussion Papers 8267, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:8267
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    More about this item

    Keywords

    City-regions; Firms; Innovation; Interaction; Norway; Partnerships; Pipelines; Radical innovation;
    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
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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