IDEAS home Printed from https://ideas.repec.org/p/tea/wpaper/0702.html
   My bibliography  Save this paper

Embeddedness and innovation in low and medium tech rural enterprises

Author

Listed:
  • Kevin P. Heanue

    (Rural Economy and Development Programme, Teagasc, Athenry, Co. Galway, Ireland)

  • David Jacobson

    (Dublin City University)

Abstract

This paper is based on case studies of four low- and medium-technology firms, two in the furniture industry and two in the metal products industry. The research on innovation and geographic proximity, combined with a reconceptualisation of the Granovetterian concept of embeddedness, provides the theoretical context. Among the issues addressed are whether deep, local embeddedness is essential for innovativeness and whether there is a pattern of change over time in the nature of the relationship between embeddedness and innovation. For example, is deep, local embeddedness associated with innovation in the early but not later stages of the development of the firm? The particular elements of innovation that are examined in relation to firm embeddedness are network relations, interactive learning and knowledge base. The results of close examination of the case study firms suggest that different policies may be appropriate for different firms, in different industries, at different stages in their development. Interspersed throughout is discussion of the relevance of the research to rural industrial development.

Suggested Citation

  • Kevin P. Heanue & David Jacobson, 2007. "Embeddedness and innovation in low and medium tech rural enterprises," Working Papers 0702, Rural Economy and Development Programme,Teagasc.
    • Handle: RePEc:tea:wpaper:0702
    as

    Download full text from publisher

    File URL: http://www.teagasc.ie/rural-economy/downloads/workingpapers/07wpre02.pdf
    File Function: First version, 2007
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Malerba, Franco, 1992. "Learning by Firms and Incremental Technical Change," Economic Journal, Royal Economic Society, vol. 102(413), pages 845-859, July.
    2. Ian R. Gordon & Philip McCann, 2005. "Innovation, agglomeration, and regional development," Journal of Economic Geography, Oxford University Press, vol. 5(5), pages 523-543, October.
    3. Bjørn, Asheim & Coenen, Lars & Vang, Jan, 2005. "Face-to-Face, Buzz and Knowledge Bases: Socio-spatial implications for learning and innovation policy," Papers in Innovation Studies 2005/18, Lund University, CIRCLE - Centre for Innovation Research.
    4. Maskell, Peter & Malmberg, Anders, 1999. "Localised Learning and Industrial Competitiveness," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 23(2), pages 167-185, March.
    5. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    6. Saxenian, AnnaLee, 1991. "The origins and dynamics of production networks in Silicon Valley," Research Policy, Elsevier, vol. 20(5), pages 423-437, October.
    7. Valerie Cerra & Jarkko Soikkeli & Sweta C. Saxena, 2003. "How Competitive is Irish Manufacturing?," The Economic and Social Review, Economic and Social Studies, vol. 34(2), pages 173-193.
    8. Antonelli, Cristiano, 2005. "Models of knowledge and systems of governance," Journal of Institutional Economics, Cambridge University Press, vol. 1(1), pages 51-73, June.
    9. Lazerson, Mark H & Lorenzoni, Gianni, 1999. "The Firms That Feed Industrial Districts: A Return to the Italian," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 8(2), pages 235-266, June.
    10. Bj–rn Johnson & Edward Lorenz & Bengt-Åke Lundvall, 2002. "Why all this fuss about codified and tacit knowledge?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(2), pages 245-262.
    11. David Keeble & Clive Lawson & Barry Moore & Frank Wilkinson, 1999. "Collective Learning Processes, Networking and 'Institutional Thickness' in the Cambridge Region," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 319-332.
    12. Antoin E. Murphy, 2000. "The 'Celtic Tiger' - An Analysis of Ireland's Economic Growth Performance," EUI-RSCAS Working Papers 16, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
    13. Giovanni Dosi & Christopher Freeman & Richard Nelson & Gerarld Silverberg & Luc Soete (ed.), 1988. "Technical Change and Economic Theory," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1988, November.
    14. Tomokazu Arita & Philip McCann, 2000. "Industrial alliances and firm location behaviour: some evidence from the US semiconductor industry," Applied Economics, Taylor & Francis Journals, vol. 32(11), pages 1391-1403.
    15. Nicolai Foss, 1996. "Higher-order industrial Capabilities and competitive advantage," Industry and Innovation, Taylor & Francis Journals, vol. 3(1), pages 1-20.
    16. Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
    17. Helena M. M. Lastres, 1994. "The Innovation Process and National Systems of Innovation," Palgrave Macmillan Books, in: The Advanced Materials Revolution and the Japanese System of Innovation, chapter 2, pages 11-30, Palgrave Macmillan.
    18. Smith, Keith, 2002. "What is the 'Knowledge Economy'? Knowledge Intensity and Distributed Knowledge Bases," UNU-INTECH Discussion Paper Series 2002-06, United Nations University - INTECH.
    19. Harald Bathelt & Andersand Malmberg & Peter Maskell, 2002. "Clusters and Knowledge Local Buzz, Global Pipelines and the Process of Knowledge Creation," DRUID Working Papers 02-12, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    20. Kevin Morgan, 2004. "The exaggerated death of geography: learning, proximity and territorial innovation systems," Journal of Economic Geography, Oxford University Press, vol. 4(1), pages 3-21, January.
    21. James Simmie, 2005. "Critical surveys edited by Stephen Roper innovation and space: A critical review of the literature," Regional Studies, Taylor & Francis Journals, vol. 39(6), pages 789-804.
    22. Rajneesh Narula & Antonello Zanfei, 2003. "Globalisation of Innovation The Role of Multinational Enterprises," DRUID Working Papers 03-15, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    23. Kevin Morgan, 1997. "The Learning Region: Institutions, Innovation and Regional Renewal," Regional Studies, Taylor & Francis Journals, vol. 31(5), pages 491-503.
    24. Stephen Roper, 2001. "Innovation, Networks and Plant Location: Some Evidence for Ireland," Regional Studies, Taylor & Francis Journals, vol. 35(3), pages 215-228.
    25. Kevin Heanue & David Jacobson, 2001. "Organizational Proximity and Institutional Learning," International Studies of Management & Organization, Taylor & Francis Journals, vol. 31(4), pages 56-72, December.
    26. Cooke, Philip, 2001. "Regional Innovation Systems, Clusters, and the Knowledge Economy," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(4), pages 945-974, December.
    27. Eoin O’Malley & Chris van Egeraat, 2000. "Industry Clusters and Irish Indigenous Manufacturing - Limits of the Porter View," The Economic and Social Review, Economic and Social Studies, vol. 31(1), pages 55-79.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. David Jacobson & Francesco Garibaldo, 2011. "The Role of Company Networks in Low-tech Industries," Chapters, in: Paul L. Robertson & David Jacobson (ed.), Knowledge Transfer and Technology Diffusion, chapter 4, Edward Elgar Publishing.
    2. Kevin P. Heanue, 2008. "Measuring Industrial Agglomeration in a Rural Industry: The Case of Irish Furniture Manufacturing," Working Papers 0830, Rural Economy and Development Programme,Teagasc.
    3. Paul L. Robertson & David Jacobson & Richard N. Langlois, 2009. "Innovation Processes and Industrial Districts," Chapters, in: Giacomo Becattini & Marco Bellandi & Lisa De Propis (ed.), A Handbook of Industrial Districts, chapter 21, Edward Elgar Publishing.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Elvira Uyarra, 2010. "What is evolutionary about ‘regional systems of innovation’? Implications for regional policy," Journal of Evolutionary Economics, Springer, vol. 20(1), pages 115-137, January.
    2. Iammarino, Simona & McCann, Philip, 2006. "The structure and evolution of industrial clusters: Transactions, technology and knowledge spillovers," Research Policy, Elsevier, vol. 35(7), pages 1018-1036, September.
    3. Max-Peter Menzel, 2008. "Dynamic Proximities – Changing Relations by Creating and Bridging Distances," Papers in Evolutionary Economic Geography (PEEG) 0816, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2008.
    4. Gloria Parra‐Requena & Francesc Xavier Molina‐Morales & Pedro Manuel García‐Villaverde, 2010. "The Mediating Effect of Cognitive Social Capital on Knowledge Acquisition in Clustered Firms," Growth and Change, Wiley Blackwell, vol. 41(1), pages 59-84, March.
    5. Soetanto, Danny & van Geenhuizen, Marina, 2019. "Life after incubation: The impact of entrepreneurial universities on the long-term performance of their spin-offs," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 263-276.
    6. Fitjar, Rune Dahl & Rodríguez-Pose, Andrés, 2013. "Firm collaboration and modes of innovation in Norway," Research Policy, Elsevier, vol. 42(1), pages 128-138.
    7. Roman Martin, 2012. "Measuring Knowledge Bases in Swedish Regions," European Planning Studies, Taylor & Francis Journals, vol. 20(9), pages 1569-1582, September.
    8. Anja Dettmann & Sidonia Proff & Thomas Brenner, 2015. "Co-operation over distance? The spatial dimension of inter-organizational innovation collaboration," Journal of Evolutionary Economics, Springer, vol. 25(4), pages 729-753, September.
    9. Rune Dahl Fitjar & Andrés Rodríguez-Pose, 2017. "Nothing is in the Air," Growth and Change, Wiley Blackwell, vol. 48(1), pages 22-39, March.
    10. Grillitsch, Markus, 2014. "Institutional Change and Economic Evolution in Regions," Papers in Innovation Studies 2014/1, Lund University, CIRCLE - Centre for Innovation Research.
    11. Andres Rodriguez-Pose & Riccardo regstdcenzi, 2008. "Research and Development, Spillovers, Innovation Systems, and the Genesis of Regional Growth in Europe," Regional Studies, Taylor & Francis Journals, vol. 42(1), pages 51-67.
    12. Markus Grillitsch, 2014. "Regional Transformation: Institutional Change and Economic Evolution in Regions," ERSA conference papers ersa14p1481, European Regional Science Association.
    13. Ana Paula Faria & Natália Barbosa & Vasco Eiriz, 2015. "Firm Innovation and Co-Location in Portugal," Growth and Change, Wiley Blackwell, vol. 46(4), pages 574-592, December.
    14. Bonnín Roca, Jaime & Vaishnav, Parth & Morgan, Granger M. & Fuchs, Erica & Mendonça, Joana, 2021. "Technology Forgiveness: Why emerging technologies differ in their resilience to institutional instability," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    15. Liu, Ju, 2014. "How Do Geographical and Organisational Proximity Influence the Relational Pattern of MNCs’ Global Innovation Networks: An In-depth Case Study," Papers in Innovation Studies 2014/16, Lund University, CIRCLE - Centre for Innovation Research.
    16. Eleonora Lorenzini, 2012. "Innovation and e-commerce in clusters of small firms: The case of a regional e-marketplace," DEM Working Papers Series 003, University of Pavia, Department of Economics and Management.
    17. Sebastian Fastenrath & Boris Braun, 2018. "Lost in Transition? Directions for an Economic Geography of Urban Sustainability Transitions," Sustainability, MDPI, vol. 10(7), pages 1-17, July.
    18. Günter Clar & Björn Sautter, 2014. "Research Driven Clusters at the Heart of (Trans-)Regional Learning and Priority-Setting Processes," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 5(1), pages 156-180, March.
    19. Patricia Hemert & Peter Nijkamp & Enno Masurel, 2013. "From innovation to commercialization through networks and agglomerations: analysis of sources of innovation, innovation capabilities and performance of Dutch SMEs," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(2), pages 425-452, April.
    20. Ben Vermeulen & Andreas Pyka, 2018. "The Role of Network Topology and the Spatial Distribution and Structure of Knowledge in Regional Innovation Policy: A Calibrated Agent-Based Model Study," Computational Economics, Springer;Society for Computational Economics, vol. 52(3), pages 773-808, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tea:wpaper:0702. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John Lennon (email available below). General contact details of provider: https://edirc.repec.org/data/reteaie.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.