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The Role of Regional Context on Innovation Persistency of Firms

Author

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  • Tavassoli, Sam

    (RMIT University)

  • Karlsson, Charlie

    (KTH)

Abstract

This paper analyses the role of regional context on innovation persistency of firms. Using five waves of the Community Innovation Survey in Sweden, we have traced firms’ innovative behaviour from 2002 to 2012, in terms of four Schumpeterian types of innovation: product, process, organizational, and marketing. Employing transition probability matrix and dynamic Probit model and controlling for an extensive set of firm-level characteristics, we find that certain regional characteristics matter for innovation persistency of firms. In particular, those firms located in regions with (i) thicker labour market or (ii) higher extent of knowledge spillover exhibit higher probability of being persistent innovators up to 14 percentage points. Such higher persistency is mostly pronounced for product innovators.

Suggested Citation

  • Tavassoli, Sam & Karlsson, Charlie, 2017. "The Role of Regional Context on Innovation Persistency of Firms," Papers in Innovation Studies 2017/11, Lund University, CIRCLE - Centre for Innovation Research.
    • Handle: RePEc:hhs:lucirc:2017_011
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    References listed on IDEAS

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    1. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    2. David J. Teece, 2008. "The Market for Know-How and the Efficient International Transfer of Technology," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 3, pages 31-46, World Scientific Publishing Co. Pte. Ltd..
    3. Sam Tavassoli & Dimitrios Tsagdis, 2014. "Critical Success Factors and Cluster Evolution: A Case Study of the Linköping ICT Cluster Lifecycle," Environment and Planning A, , vol. 46(6), pages 1425-1444, June.
    4. Eric von Hippel, 1994. ""Sticky Information" and the Locus of Problem Solving: Implications for Innovation," Management Science, INFORMS, vol. 40(4), pages 429-439, April.
    5. Tavassoli, Sam & Karlsson, Charlie, 2015. "Persistence of various types of innovation analyzed and explained," Research Policy, Elsevier, vol. 44(10), pages 1887-1901.
    6. Sam Tavassoli & Nunzia Carbonara, 2014. "The role of knowledge variety and intensity for regional innovation," Small Business Economics, Springer, vol. 43(2), pages 493-509, August.
    7. Karlsson, Charlie & Tavassoli, Sam, 2015. "Innovation Strategies and Firm Performance," Working Paper Series in Economics and Institutions of Innovation 401, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    8. Sam Tavassoli & Charlie Karlsson, 2016. "Innovation strategies and firm performance: Simple or complex strategies?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 25(7), pages 631-650, October.
    9. Tavassoli, Sam & Tsagdis, Dimitrios, 2013. "Critical Success Factors and Cluster Evolution: A case study of the Linköping ICT cluster lifecycle," Working Papers 2013/02, Blekinge Institute of Technology, Department of Industrial Economics.
    10. Andre Torre & Alain Rallet, 2005. "Proximity and Localization," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 47-59.
    11. Catherine Beaudry & G. Swann, 2009. "Firm growth in industrial clusters of the United Kingdom," Small Business Economics, Springer, vol. 32(4), pages 409-424, April.
    12. Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
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    Cited by:

    1. Adelheid Holl & Bettina Peters & Christian Rammer, 2023. "Local knowledge spillovers and innovation persistence of firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 32(6), pages 826-850, August.
    2. Aronica, Martina & Fazio, Giorgio & Piacentino, Davide, 2022. "A micro-founded approach to regional innovation in Italy," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    3. Annekatrin Niebuhr & Jan Cornelius Peters & Alex Schmidke, 2020. "Spatial sorting of innovative firms and heterogeneous effects of agglomeration on innovation in Germany," The Journal of Technology Transfer, Springer, vol. 45(5), pages 1343-1375, October.
    4. Tavassoli, Sam & Karlsson, Charlie, 2021. "The role of location on complexity of firms’ innovation outcome," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    5. Lara Agostini & Federico Caviggioli & Francesco Galati & Barbara Bigliardi, 2020. "A social perspective of knowledge-based innovation: mobility and agglomeration. Introduction to the special section," The Journal of Technology Transfer, Springer, vol. 45(5), pages 1309-1323, October.
    6. Yepifanova, Iryna & Dzhedzhula, Viacheslav, 2020. "Методологія Оцінювання Інноваційного Потенціалу Підприємств," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 6(3), September.

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    More about this item

    Keywords

    location; innovation; persistence; product innovations; process innovations; market innovations; organizational innovations; firms; Community Inno¬vation Survey;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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