IDEAS home Printed from https://ideas.repec.org/p/zbw/ifhwps/202019.html
   My bibliography  Save this paper

Digitization and knowledge spillover effectiveness: Evidence from the "German Mittelstand"

Author

Listed:
  • Proeger, Till
  • Runst, Petrik

Abstract

The Knowledge Spillover Theory of Entrepreneurship (KSTE) considers determinants of knowledge diffusion as well as their impact on entrepreneurial activities and growth. Extending the KSTE, the role of incumbent firms for the broad diffusion of new knowledge has been emphasized. For those firms, the barriers to an effective flow of information are considered using the concepts of knowledge filters and absorptive capacities. Both concepts enable the derivation of institutional measures to penetrate knowledge filters and systematically increase absorptive capacities. We interpret the process of digitization as a central process of knowledge spillover in recent years and determine digitization-related knowledge filters for particular domains of firm decision-making. Using a consultant-based in-depth evaluation of 200 SMEs conducted in the context of a federal innovation program, structural drivers, firm clusters and domain-specific knowledge filters for digitization are determined. We find little evidence for structural drivers of knowledge spillover effectiveness. However, as firms are clustered according to their digitization pattern, we show that firms realize high degrees of digitization in most domains or in none, leading us to argue that domain-specific knowledge filters are weak. Rather, knowledge spillover in digitization can be considered a process with initially strong general knowledge filter and - once this filter has been penetrated - weaker subsequent domain-specific knowledge filters. Policy and managerial implications for increasing digitization-related knowledge spillovers in SMEs are discussed.

Suggested Citation

  • Proeger, Till & Runst, Petrik, 2019. "Digitization and knowledge spillover effectiveness: Evidence from the "German Mittelstand"," ifh Working Papers 20/2019, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    • Handle: RePEc:zbw:ifhwps:202019
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/204458/1/1677374993.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Wolfgang Maennig & Michaela Ölschläger & Hans-Jörg Schmidt-Trenz, 2015. "Organisations and regional innovative capability: the case of the chambers of commerce and industry in Germany," Environment and Planning C, , vol. 33(4), pages 811-827, August.
    2. Maribel Guerrero & David Urbano, 2014. "Academics’ start-up intentions and knowledge filters: an individual perspective of the knowledge spillover theory of entrepreneurship," Small Business Economics, Springer, vol. 43(1), pages 57-74, June.
    3. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    4. Bo Carlsson & Zoltán J. Ács & David B. Audretsch & Pontus Braunerhjelm, 2015. "Knowledge creation, entrepreneurship, and economic growth: a historical review," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 5, pages 71-107, Edward Elgar Publishing.
    5. David B. Audretsch (ed.), 2006. "Entrepreneurship, Innovation and Economic Growth," Books, Edward Elgar Publishing, number 4130.
    6. Daniel Schiller & Javier Revilla Diez, 2010. "Local embeddedness of knowledge spillover agents: Empirical evidence from German star scientists," Papers in Regional Science, Wiley Blackwell, vol. 89(2), pages 275-294, June.
    7. Christian Rammer & Dirk Czarnitzki & Alfred Spielkamp, 2009. "Innovation success of non-R&D-performers: substituting technology by management in SMEs," Small Business Economics, Springer, vol. 33(1), pages 35-58, June.
    8. Thomä, Jörg, 2017. "DUI mode learning and barriers to innovation - the case of Germany," ifh Working Papers 7 (2017), Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    9. Jensen, Morten Berg & Johnson, Bjorn & Lorenz, Edward & Lundvall, Bengt Ake, 2007. "Forms of knowledge and modes of innovation," Research Policy, Elsevier, vol. 36(5), pages 680-693, June.
    10. Zoltan J. Acs & Lawrence A. Plummer, 2008. "Penetrating the "Knowledge Filter" in Regional Economies," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 26, pages 370-388, Edward Elgar Publishing.
    11. Christopher Hayter, 2013. "Conceptualizing knowledge-based entrepreneurship networks: perspectives from the literature," Small Business Economics, Springer, vol. 41(4), pages 899-911, December.
    12. Zoltán J. Ács & Lawrence A. Plummer & Ryan Sutter, 2015. "Penetrating the knowledge filter in “rust belt” economies," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 17, pages 320-343, Edward Elgar Publishing.
    13. Zoltán J. Ács & Pontus Braunerhjelm & David B. Audretsch & Bo Carlsson, 2015. "The knowledge spillover theory of entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 7, pages 129-144, Edward Elgar Publishing.
    14. Robert Huggins & Piers Thompson, 2015. "Entrepreneurship, innovation and regional growth: a network theory," Small Business Economics, Springer, vol. 45(1), pages 103-128, June.
    15. Haifeng Qian & Zoltán J. Ács, 2015. "An absorptive capacity theory of knowledge spillover entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 9, pages 161-173, Edward Elgar Publishing.
    16. Audretsch, David B. & Keilbach, Max, 2008. "Resolving the knowledge paradox: Knowledge-spillover entrepreneurship and economic growth," Research Policy, Elsevier, vol. 37(10), pages 1697-1705, December.
    17. Pekka Stenholm & Zoltán J. Ács & Robert Wuebker, 2015. "Exploring country-level institutional arrangements on the rate and type of entrepreneurial activity," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 20, pages 387-404, Edward Elgar Publishing.
    18. Daniel Feser & Till Proeger, 2017. "Asymmetric information as a barrier to knowledge spillovers in expert markets," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 211-232, March.
    19. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    20. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
    21. Mueller, Pamela, 2006. "Exploring the knowledge filter: How entrepreneurship and university-industry relationships drive economic growth," Research Policy, Elsevier, vol. 35(10), pages 1499-1508, December.
    22. David B. Audretsch & Max Keilbach, 2007. "The Theory of Knowledge Spillover Entrepreneurship," Journal of Management Studies, Wiley Blackwell, vol. 44(7), pages 1242-1254, November.
    23. Haifeng Qian & Hyejin Jung, 2017. "Solving the knowledge filter puzzle: absorptive capacity, entrepreneurship and regional development," Small Business Economics, Springer, vol. 48(1), pages 99-114, January.
    24. Robert Huggins & Andrew Johnston & Piers Thompson, 2012. "Network Capital, Social Capital and Knowledge Flow: How the Nature of Inter-organizational Networks Impacts on Innovation," Industry and Innovation, Taylor & Francis Journals, vol. 19(3), pages 203-232, April.
    25. Cappelli, Riccardo & Czarnitzki, Dirk & Kraft, Kornelius, 2014. "Sources of spillovers for imitation and innovation," Research Policy, Elsevier, vol. 43(1), pages 115-120.
    26. Wolfgang Maennig & Michaela Olschlager, 2011. "Innovative Milieux and Regional Competitiveness: The Role of Associations and Chambers of Commerce and Industry in Germany," Regional Studies, Taylor & Francis Journals, vol. 45(4), pages 441-452.
    27. Audretsch, David B. & Keilbach, Max C. & Lehmann, Erik E., 2006. "Entrepreneurship and Economic Growth," OUP Catalogue, Oxford University Press, number 9780195183511.
    28. Niccolò Ghio & Massimiliano Guerini & Erik Lehmann & Cristina Rossi-Lamastra, 2015. "The emergence of the knowledge spillover theory of entrepreneurship," Small Business Economics, Springer, vol. 44(1), pages 1-18, January.
    29. David Audretsch & Rosa Caiazza, 2016. "Technology transfer and entrepreneurship: cross-national analysis," The Journal of Technology Transfer, Springer, vol. 41(6), pages 1247-1259, December.
    30. Pontus Braunerhjelm & Zoltán J. Ács & David B. Audretsch & Bo Carlsson, 2015. "The missing link: knowledge diffusion and entrepreneurship in endogenous growth," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 6, pages 108-128, Edward Elgar Publishing.
    31. David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468, April.
    32. Audretsch, David & Braunerhjelm, Pontus & Acs, Zoltán J & Carlsson, Bo, 2004. "The Missing Link: The Knowledge Filter and Entrepreneurship in Endogenous Growth," CEPR Discussion Papers 4783, C.E.P.R. Discussion Papers.
    33. Chengli Shu & Cuijuan Liu & Shanxing Gao & Mark Shanley, 2014. "The Knowledge Spillover Theory of Entrepreneurship in Alliances," Entrepreneurship Theory and Practice, , vol. 38(4), pages 913-940, July.
    34. Nigel Driffield & James H. Love, 2005. "Who Gains From Whom? Spillovers, Competition And Technology Sourcing In The Foreign‐Owned Sector Of Uk Manufacturing," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(5), pages 663-686, November.
    35. Yang, Hongyan & Steensma, H. Kevin, 2014. "When do firms rely on their knowledge spillover recipients for guidance in exploring unfamiliar knowledge?," Research Policy, Elsevier, vol. 43(9), pages 1496-1507.
    36. Thomä, Jörg, 2017. "DUI mode learning and barriers to innovation—A case from Germany," Research Policy, Elsevier, vol. 46(7), pages 1327-1339.
    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. Runst, Petrik & Proeger, Till, 2020. "Digitalisierung des SHK-Gewerks - Sonderauswertung des Digitalisierungs-Checks des Kompetenzzentrums Digitales Handwerk," Göttinger Beiträge zur Handwerksforschung 40, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    2. Runst, Petrik, 2023. "Digitalisierungsmuster im Handwerk: Eine regionale und sektorale Analyse des Digitalisierungs-Checks," ifh Forschungsberichte 11, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    3. Proeger, Till & Meub, Lukas & Thonipara, Anita & Bizer, Kilian, 2019. "Digitale Plattformen im Handwerk - eine Analyse von MyHammer und ProvenExpert," Göttinger Beiträge zur Handwerksforschung 32, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    4. Runst, Petrik & Proeger, Till, 2020. "Digitalisierung des Handwerks in Niedersachsen - Sonderauswertung des Digitalisierungs-Checks des Kompetenzzentrums Digitales Handwerk," Göttinger Beiträge zur Handwerksforschung 41, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    5. Proeger, Till & Thonipara, Anita & Bizer, Kilian, 2020. "Mechanismen, Erfolgsfaktoren und Hemmnisse der Digitalisierung im Handwerk," Göttinger Beiträge zur Handwerksforschung 35, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    6. Runst, Petrik & Proeger, Till, 2020. "Digitalisierungsmuster im Handwerk - Eine regionale und sektorale Analyse des Digitalisierungs-Checks des Kompetenzzentrums Digitales Handwerk," Göttinger Beiträge zur Handwerksforschung 39, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).

    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. Till Proeger, 2020. "Knowledge Spillovers and Absorptive Capacity—Institutional Evidence from the “German Mittelstand”," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(1), pages 211-238, March.
    2. Proeger, Till, 2017. "Knowledge spillovers and absorptive capacity - institutional evidence from the 'German Mittelstand'," University of Göttingen Working Papers in Economics 320, University of Goettingen, Department of Economics, revised 2017.
    3. Daniel Feser & Till Proeger, 2017. "Asymmetric information as a barrier to knowledge spillovers in expert markets," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 211-232, March.
    4. Feser, Daniel & Proeger, Till, 2015. "Asymmetric information as a barrier to knowledge spillovers in expert markets," University of Göttingen Working Papers in Economics 259, University of Goettingen, Department of Economics.
    5. Till Proeger & Petrik Runst, 2020. "Digitization and Knowledge Spillover Effectiveness—Evidence from the “German Mittelstand”," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(4), pages 1509-1528, December.
    6. Silveli Cristo-Andrade & João J. Ferreira, 2020. "Knowledge spillovers and strategic entrepreneurship: what researches and approaches?," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 263-286, March.
    7. Lattacher, Wolfgang & Gregori, Patrick & Holzmann, Patrick & Schwarz, Erich J., 2021. "Knowledge spillover in entrepreneurial emergence: A learning perspective," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    8. Niccolò Ghio & Massimiliano Guerini & Erik Lehmann & Cristina Rossi-Lamastra, 2015. "The emergence of the knowledge spillover theory of entrepreneurship," Small Business Economics, Springer, vol. 44(1), pages 1-18, January.
    9. David B. Audretsch & Erik E. Lehmann & Matthias Menter, 2016. "Public cluster policy and new venture creation," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(4), pages 357-381, December.
    10. Zoltán J. Ács & Pontus Braunerhjelm & David B. Audretsch & Bo Carlsson, 2015. "The knowledge spillover theory of entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 7, pages 129-144, Edward Elgar Publishing.
    11. Tsvetkova, Alexandra, 2016. "Do diversity, creativity and localized competition promote endogenous firm formation? Evidence from a high-tech US industry," MPRA Paper 72349, University Library of Munich, Germany.
    12. Haifeng Qian, 2018. "Knowledge-Based Regional Economic Development: A Synthetic Review of Knowledge Spillovers, Entrepreneurship, and Entrepreneurial Ecosystems," Economic Development Quarterly, , vol. 32(2), pages 163-176, May.
    13. Robert Huggins & Piers Thompson, 2015. "Entrepreneurship, innovation and regional growth: a network theory," Small Business Economics, Springer, vol. 45(1), pages 103-128, June.
    14. David Audretsch & Maksim Belitski, 2013. "The missing pillar: the creativity theory of knowledge spillover entrepreneurship," Small Business Economics, Springer, vol. 41(4), pages 819-836, December.
    15. Rui Torres de Oliveira & Simona Gentile-Lüdecke & Sandra Figueira, 2022. "Barriers to innovation and innovation performance: the mediating role of external knowledge search in emerging economies," Small Business Economics, Springer, vol. 58(4), pages 1953-1974, April.
    16. Haifeng Qian & Hyejin Jung, 2017. "Solving the knowledge filter puzzle: absorptive capacity, entrepreneurship and regional development," Small Business Economics, Springer, vol. 48(1), pages 99-114, January.
    17. Roberta Capello & Camilla Lenzi, 2016. "Innovation modes and entrepreneurial behavioral characteristics in regional growth," Small Business Economics, Springer, vol. 47(4), pages 875-893, December.
    18. Ferreira, João J.M. & Fernandes, Cristina I. & Veiga, Pedro Mota, 2024. "The effects of knowledge spillovers, digital capabilities, and innovation on firm performance: A moderated mediation model," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    19. Colombelli, Alessandra & Quatraro, Francesco, 2018. "New firm formation and regional knowledge production modes: Italian evidence," Research Policy, Elsevier, vol. 47(1), pages 139-157.
    20. Pontus Braunerhjelm & Ding Ding & Per Thulin, 2016. "Labour as a knowledge carrier: how increased mobility influences entrepreneurship," The Journal of Technology Transfer, Springer, vol. 41(6), pages 1308-1326, December.

    More about this item

    Keywords

    Digitization; Knowledge Filter; Knowledge Spillover Theory of Entrepreneurship; Small and Medium Enterprises;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:zbw:ifhwps:202019. 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/ifgoede.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.