IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa02p054.html
   My bibliography  Save this paper

Spatial embeddedness and firm performance: an empirical exploration of the effects of proximity on innovative and economic performance

Author

Listed:
  • Oerlemans, Leon A.G.
  • Meeus, Marius T.H.

Abstract

Recent theoretical developments in organisation science and regional economics have emphasised the importance of networks and geographical proximity for the performance of firms. Empirical evidence on these relationships is scarce, though, especially in regional science. In this paper, we address the following research question: to what extent do firm-specific resources, organisational embeddedness, proximity, and industry factors influence innovative and economic outcomes of innovative firms? We used a theoretical synthesis of regional and organisational science to build a research model that enabled us to derive several hypotheses on the influence of proximity on outcomes, taking other important predictors for performance into account. Our empirical findings confirm the importance of proximity especially for innovative outcomes. Moreover, we found that in particular network relations with buyers and suppliers are conducive for firm performance, whereas other indicators of embeddedness and of internal resources have little impact probably due to substitution effects. Finally, regional as well sectoral R&D spillovers influence outcomes in a positive way.

Suggested Citation

  • Oerlemans, Leon A.G. & Meeus, Marius T.H., 2002. "Spatial embeddedness and firm performance: an empirical exploration of the effects of proximity on innovative and economic performance," ERSA conference papers ersa02p054, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa02p054
    as

    Download full text from publisher

    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa02/cd-rom/papers/054.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Oerlemans, L.A.G. & Meeus, M.T.H. & Boekema, F.W.M., 2001. "Firm clustering and innovation," Other publications TiSEM c4398688-1710-449a-83e7-e, Tilburg University, School of Economics and Management.
    2. Harabi, Najib, 1995. "Channels of R&D Spillovers: An Empirical Investigation," MPRA Paper 26270, University Library of Munich, Germany.
    3. Udo Staber, 2001. "Spatial Proximity and Firm Survival in a Declining Industrial District: The Case of Knitwear Firms in Baden-Wu¨rttemberg," Regional Studies, Taylor & Francis Journals, vol. 35(4), pages 329-341.
    4. Birgitte Gregersen & Bjorn Johnson, 1997. "Learning Economies, Innovation Systems and European Integration," Regional Studies, Taylor & Francis Journals, vol. 31(5), pages 479-490.
    5. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
    6. Keith Smith, "undated". "Interactions in knowledge systems: Foundations, policy implications and empirical methods," STEP Report series 199410, The STEP Group, Studies in technology, innovation and economic policy.
    7. Love, James H. & Roper, Stephen, 2001. "Location and network effects on innovation success: evidence for UK, German and Irish manufacturing plants," Research Policy, Elsevier, vol. 30(4), pages 643-661, April.
    8. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-640, June.
    9. Wilbur R. Thompson, 1962. "Locational Differences in Inventive Effort and Their Determinants," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 253-272, National Bureau of Economic Research, Inc.
    10. Bart Verspagen & Marjolein C.J. Cani, ls, 2001. "Barriers to knowledge spillovers and regional convergence in an evolutionary model," Journal of Evolutionary Economics, Springer, vol. 11(3), pages 307-329.
    11. Bjørn T. Asheim, 2007. "Industrial Districts as ‘Learning Regions’: A Condition for Prosperity," Chapters, in: Roel Rutten & Frans Boekema (ed.), The Learning Region, chapter 4, Edward Elgar Publishing.
    12. Åsa Lindholm Dahlstrand, 1999. "Technology-based SMEs in the Go ¨teborg Region: Their Origin and Interaction with Universities and Large Firms," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 379-389.
    13. Meeus, Marius T. H. & Oerlemans, Leon A. G., 2000. "Firm behaviour and innovative performance: An empirical exploration of the selection-adaptation debate," Research Policy, Elsevier, vol. 29(1), pages 41-58, January.
    14. Robert Hassink, 1993. "Regional Innovation Policies Compared," Urban Studies, Urban Studies Journal Limited, vol. 30(6), pages 1009-1024, June.
    15. Giovanni Dosi, 2000. "Sources, Procedures, and Microeconomic Effects of Innovation," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 2, pages 63-114, Edward Elgar Publishing.
    16. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
    17. DeBresson, Chris & Amesse, Fernand, 1991. "Networks of innovators :A review and introduction to the issue," Research Policy, Elsevier, vol. 20(5), pages 363-379, October.
    18. Oerlemans, L.A.G. & Meeus, M.T.H. & Boekema, F.W.M., 1998. "Do networks matter for innovation? The usefulness of the network approach in analysing innovation," Other publications TiSEM b5b01e96-86f7-4fdf-95c0-4, Tilburg University, School of Economics and Management.
    19. Audretsch, David B, 1998. "Agglomeration and the Location of Innovative Activity," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 14(2), pages 18-29, Summer.
    20. repec:bla:scandj:v:94:y:1992:i:0:p:s29-47 is not listed on IDEAS
    21. Zvi Griliches, 1998. "The Search for R&D Spillovers," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 251-268, National Bureau of Economic Research, Inc.
    22. Roberta Capello, 1999. "Spatial Transfer of Knowledge in High Technology Milieux: Learning Versus Collective Learning Processes," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 353-365.
    23. Kevin Morgan, 1997. "The Learning Region: Institutions, Innovation and Regional Renewal," Regional Studies, Taylor & Francis Journals, vol. 31(5), pages 491-503.
    24. Leon A.G. Oerlemans & Marius T.H. Meeus & Frans W.M. Boekema, 1998. "Do Networks Matter for Innovation? The usefulness of the economic network approach in analysing innovation," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 89(3), pages 298-309, August.
    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. Werner Bonte, 2004. "Innovation and employment growth in industrial clusters: evidence from aeronautical firms in Germany," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 11(3), pages 259-278.
    2. Joana Almodovar & Aurora Amélia Castro Teixeira, 2004. "Regional innovation networks evolution and firm performance: one or two way causality?," ERSA conference papers ersa04p88, European Regional Science Association.

    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. Stephen Roper & Nola Hewitt-Dundas & James H Love, 2003. "An Ex Ante Evaluation Framework for the Regional Impact of Publicly Supported R&D Projects," ERSA conference papers ersa03p100, European Regional Science Association.
    2. Freel, Mark S., 2003. "Sectoral patterns of small firm innovation, networking and proximity," Research Policy, Elsevier, vol. 32(5), pages 751-770, May.
    3. Oerlemans, L.A.G. & Meeus, M.T.H. & Boekema, F.W.M., 2001. "On spatial embeddedness of innovation networks : An exploration of the proximity effect," Other publications TiSEM 05a1ad7e-a27e-4ef0-85c5-4, Tilburg University, School of Economics and Management.
    4. Oerlemans, Leon A. G. & Boekema, Frans W. M. & Meeus, Marius T. H., 2000. "On The Spatial Embeddedness Of Innovation Networks: An Exploration Of The Proximity Effect," ERSA conference papers ersa00p57, European Regional Science Association.
    5. Roper, Stephen & Hewitt-Dundas, Nola & Love, James H., 2004. "An ex ante evaluation framework for the regional benefits of publicly supported R&D projects," Research Policy, Elsevier, vol. 33(3), pages 487-509, April.
    6. Dirk Czarnitzki & Hanna Hottenrott, 2009. "Are Local Milieus The Key To Innovation Performance?," Journal of Regional Science, Wiley Blackwell, vol. 49(1), pages 81-112, February.
    7. Thomas Doring & Jan Schnellenbach, 2006. "What do we know about geographical knowledge spillovers and regional growth?: A survey of the literature," Regional Studies, Taylor & Francis Journals, vol. 40(3), pages 375-395.
    8. Stephen Roper, 2001. "Benchmarking Regional Innovation: A Comparison of Bavaria, Northern Ireland and the Republic of Ireland," ERSA conference papers ersa01p39, European Regional Science Association.
    9. Vega-Jurado, Jaider & Gutiérrez-Gracia, Antonio & Fernández-de-Lucio, Ignacio & Manjarrés-Henri­quez, Liney, 2008. "The effect of external and internal factors on firms' product innovation," Research Policy, Elsevier, vol. 37(4), pages 616-632, May.
    10. Oerlemans, Leon A. G. & Meeus, Marius T. H. & Boekema, Frans W. M., 1999. "Learning innovation and proximity. An empirical exploration of patterns of learning: a case study," ERSA conference papers ersa99pa383, European Regional Science Association.
    11. Ehrenfeld, Wilfried, 2012. "Towards a Theory of Climate Innovation - A Model Framework for Analyzing Drivers and Determinants," IWH Discussion Papers 1/2012, Halle Institute for Economic Research (IWH).
    12. Oerlemans, Leon A.G. & Meeus, Marius T.H. & Boekema, Frans W.M., 1998. "Learning, innovation and proximity. An empirical exploration of patterns of learning: a case study," Working Papers 98.3, Eindhoven Center for Innovation Studies.
    13. de Jong, Jeroen P.J. & Marsili, Orietta, 2006. "The fruit flies of innovations: A taxonomy of innovative small firms," Research Policy, Elsevier, vol. 35(2), pages 213-229, March.
    14. Martijn J. Smit & Maria A. Abreu & Henri L.F. Groot, 2015. "Micro-evidence on the determinants of innovation in the Netherlands: The relative importance of absorptive capacity and agglomeration externalities," Papers in Regional Science, Wiley Blackwell, vol. 94(2), pages 249-272, June.
    15. Harabi, Najib, 1994. "Technischer Fortschritt in der Schweiz: Empirische Ergebnisse aus industrieökonomischer Sicht [Technischer Fortschritt in der Schweiz:Empirische Ergebnisse aus industrieökonomischer Sicht]," MPRA Paper 6725, University Library of Munich, Germany.
    16. Andrés Rodríguez-Pose & Marco Di Cataldo, 2015. "Quality of government and innovative performance in the regions of Europe," Journal of Economic Geography, Oxford University Press, vol. 15(4), pages 673-706.
    17. Hugo Pinto & Jorge André Guerreiro & Manuel Fernández-Esquinas, 2023. "Sources of knowledge in the firm: a review on influential, internal and contextual factors in innovation dynamics," SN Business & Economics, Springer, vol. 3(2), pages 1-32, February.
    18. Justin Doran & Declan Jordan, 2016. "Cross-sectoral differences in the drivers of innovation," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 43(5), pages 719-748, October.
    19. Gupta, Vipin & Subramanian, Ram, 2008. "Seven perspectives on regional clusters and the case of Grand Rapids office furniture city," International Business Review, Elsevier, vol. 17(4), pages 371-384, August.
    20. Ronde, Patrick & Hussler, Caroline, 2005. "Innovation in regions: What does really matter?," Research Policy, Elsevier, vol. 34(8), pages 1150-1172, October.

    More about this item

    Statistics

    Access and download statistics

    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:wiw:wiwrsa:ersa02p054. 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: Gunther Maier (email available below). General contact details of provider: http://www.ersa.org .

    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.