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Innovation in the periphery: compensation and exploitation strategies

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  • Jakob Eder
  • Michaela Trippl

Abstract

Recent research has challenged the urban bias in economic geography and innovation studies, showing that novelty generation also takes place in peripheral regions. So far, however, analyses focus on how firms innovate despite their unfavourable location and little is said about innovation benefits of peripheral areas. Hence, this article identifies different compensation and exploitation strategies adopted by firms in order to overcome regional innovation constraints and to reap innovation benefits found in the periphery. Drawing on empirical evidence from Austria, our qualitative analysis reveals that innovation in peripheral regions is the outcome of a combination of compensation and exploitation practices.

Suggested Citation

  • Jakob Eder & Michaela Trippl, 2019. "Innovation in the periphery: compensation and exploitation strategies," PEGIS geo-disc-2019_07, Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business.
    • Handle: RePEc:wiw:wiwpeg:geo-disc-2019_07
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    5. Simon Baumgartinger-Seiringer & David Doloreux & Richard Shearmur & Michaela Trippl, 2021. "When history does not matter? The rise of Quebec’s wine industry," PEGIS geo-disc-2021_05, Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business.
    6. Nils Grashof & Stefano Basilico, 2023. "The dark side of green innovation? Green transition and regional inequality in Europe," Papers in Evolutionary Economic Geography (PEEG) 2314, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jun 2023.
    7. Dirk Fornahl & Nils Grashof & Alexander Kopka, 2021. "Do not neglect the periphery?! - the emergence and diffusion of radical innovations," Bremen Papers on Economics & Innovation 2102, University of Bremen, Faculty of Business Studies and Economics.
    8. Carolina Castaldi, 2024. "The geography of urban innovation beyond patents only: New evidence on large and secondary cities in the United States," Urban Studies, Urban Studies Journal Limited, vol. 61(7), pages 1248-1272, May.
    9. Maria Klonowska-Matynia, 2022. "Human Capital as a Source of Energy for Rural Areas’ Socio-Economic Development—Empirical Evidence for Rural Areas in Poland," Energies, MDPI, vol. 15(21), pages 1-31, November.
    10. Galetti, Jefferson Ricardo Bretas & Tessarin, Milene Simone & Morceiro, Paulo César, 2020. "Local, Complementarity and Similarity Relatedness in Different Regional and Sectoral Contexts," TD NEREUS 12-2020, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    11. David Doloreux & Richard Shearmur & Igone Porto‐Gomez & Jon Mikel Zabala‐Iturriagagoitia, 2020. "DUI and STI innovation modes in the Canadian wine industry: The geography of interaction modes," Growth and Change, Wiley Blackwell, vol. 51(3), pages 890-909, September.
    12. Jefferson Ricardo Bretas Galetti & Milene Simone Tessarin & Paulo Cesar Morceiro, 2021. "Skill relatedness, structural change and heterogeneous regions: evidence from a developing country," Papers in Regional Science, Wiley Blackwell, vol. 100(6), pages 1355-1376, December.
    13. Patrycjusz Zarębski & Małgorzata Czerwińska-Jaśkiewicz & Maria Klonowska-Matynia, 2022. "Innovation in Peripheral Regions from a Multidimensional Perspective: Evidence from the Middle Pomerania Region in Poland," Sustainability, MDPI, vol. 14(14), pages 1-18, July.
    14. Huasheng Zhu & Ruobin Liu & Bo Chen, 2023. "The Rise of Specialized and Innovative Little Giant Enterprises under China’s ‘Dual Circulation’ Development Pattern: An Analysis of Spatial Patterns and Determinants," Land, MDPI, vol. 12(1), pages 1-26, January.
    15. Mo Chen & Xuhua Hu & Jijian Zhang & Zhe Xu & Guang Yang & Zenan Sun, 2023. "Are Firms More Willing to Seek Green Technology Innovation in the Context of Economic Policy Uncertainty? —Evidence from China," Sustainability, MDPI, vol. 15(19), pages 1-24, September.

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    More about this item

    Keywords

    innovation; periphery; compensation; exploitation;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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