Franz Tödtling

SCIENCE-INDUSTRY INTERACTION IN THE PROCESS OF INNOVATION - THE IMPORTANCE OF BOUNDARY-CROSSING BETWEEN SYSTEMS

Abstract Applying recent theoretical concepts of social systems to innovation networks of firms leads to the presumption that linking firms to non-business systems stimulates innovativeness more than remaining within the business system’s set of routines. Crossing the border to science, in particular, increases the diversity of firms’ innovation partners and respective innovation stimuli which, in turn, improves the capability of firms to introduce more advanced innovations. This contention is supported by a statistical analysis using data from a research project on innovation systems in several European regions. The results demonstrate that partners from science are more important than the firms’ customers for the introduction of products which are new to the market.

How effective is innovation support for SMEs? An analysis of the region of Upper Austria

Abstract SMEs are confronted with particular problems constraining their innovation activities. How their needs are fulfilled by support instruments has been investigated in a recent European research project. The results for the region of Upper Austria lead to the conclusion that some of the support is mistargeted, disregarding certain indicated or latent deficiencies of SMEs: direct financial support concentrates on research and development, neglecting the commercialization of innovations. In general, high-technology innovation projects are preferred, less technologically advanced or innovative firms lack adequate support. The spillover effects of technology centres are limited. The problem that most SMEs hardly interact with knowledge providers from outside the business sector (e.g., universities) is not reduced by the support instruments. Furthermore, they perform insufficiently the function of interfaces to innovation-related resources and information from outside the region. There is a lack of proactive consultancy concerning strategic, organizational, and technological weaknesses which is necessary because often the firms are not aware of such deficiencies.

Innovation in knowledge intensive industries: The nature and geography of knowledge links

Abstract Knowledge has become a key source of competitiveness for advanced regions and nations, indicating a transformation of capitalism towards a “knowledge economy”. Knowledge intensive sectors in production and in services have a lead in this respect, they can be considered as role models for the future. The innovation process, the mechanisms of knowledge exchange and the respective linkages in those industries differ quite markedly from those in other sectors. Clustering and local knowledge spillovers are frequently stated phenomena, although it is still unclear as to what the nature and geography of those knowledge links are. The aim of this paper is to examine the character of the innovation process and the type of interactions in those industries, in order to find out how strongly they are related to regional, national and international innovation systems. We will analyse the sources and the mechanisms of knowledge exchange and their relevance for innovation. The paper develops a typology of innovation interactions and provides empirical evidence for Austria based on data from a recent firm survey.

Knowledge Sourcing Beyond Buzz and Pipelines: Evidence from the Vienna Software Sector

Abstract This article examines the nature and geography of knowledge linkages in the Vienna software cluster. Empirical studies on the software sector have provided contradictory evidence of the relative importance of different sources of knowledge, the spatial dimension of exchanges of knowledge, and the relevance of different channels for the transmission of knowledge. Recent conceptual work on the geography of knowledge linkages has highlighted that the innovative dynamics of clusters rests on both local and global knowledge flows, that is, the combination of “local buzz” and “global pipelines.” However, the buzz-and-pipelines approach fails to provide a precise understanding of the mechanisms by which actors in a cluster gain access to knowledge at different spatial scales. This article goes beyond the buzz-and-pipelines concept and suggests a differentiated typology of knowledge linkages, distinguishing among market relations, formal networks, spillovers, and informal networks. Drawing on a survey of firms and face-to-face interviews with representatives of companies, we demonstrate that in the Vienna software industry, knowledge flows are informal. We found that spillovers and informal networks are highly significant at all spatial scales and are complemented by formalized research-and-development partnerships at the local and national levels. We also show that the character of knowledge linkages is dependent on the nature of innovation. The more radical the innovation, the larger the variety of sources of knowledge and the stronger the diversity of the mechanisms for transferring knowledge.

The Role of the Region for Innovation Activities of SMEs

SMEs innovate in a different way to larger firms. They command fewer resources, have less R&D, and they generally face more uncertainties and barriers to innovation. These weaknesses could partly be overcome by their integration into networks and innovation systems. Due to the fact that interactions of SMEs are often informal and trust based, the region should be an important interaction and support-space for the innovation activities of SMEs. According to the empirical findings of a European TSER project (SMEPOL) this was not fully confirmed: SMEs are less often engaged in innovation networks than larger firms and if they have innovation partnerships they are primarily concentrated on business partners. Because relations to science and technology transfer are rare, SMEs make only limited use of the full potential of their respective regional innovation systems.

Regional Knowledge Economies

This original and timely book presents the most comprehensive, empirically based analysis of clustering dynamics in the high-technology sector across liberal and co-ordinated market economies.

Like Phoenix from the Ashes? The Renewal of Clusters in Old Industrial Areas.

Many cluster studies have focused on growth regions and industries covering only the early phases of cluster development. Little attention, however, has been paid to the renewal of clusters in old industrial regions. The aim of the paper is to address the question of how clusters renew themselves in such regions and how they adjust to changes in their environment. After identifying relevant factors from the literature, a comparison is made of the renewal of the automotive and the metal clusters in the old industrial region of Styria. The paper investigates and analyses the different development paths. Critical factors of cluster renewal turn out to be a well developed regional innovation system, the establishment of new innovation networks and new and more indirect forms of policy approach.

Innovation systems in regions of Europe—a comparative perspective

Abstract The understanding of the innovation process has changed considerably in the past years. Models have shifted from linear and firm‐based conceptions towards interdependent and systemic approaches. Both national and regional innovation systems have been discussed in recent literature. The present paper investigates on the basis of data for several European regions, collected in the course of a European project, to which extent companies engage in networks in their innovation process. Also, the types of partners, their respective locations as well as differences between the regions are explored. Results show that for many firms innovation is still a rather internal process. Reliance on internal competence and lack of trust to other firms are among the reasons for this. Nevertheless, for another group of companies networks are much more relevant. They draw on ideas, know‐how and complementary assets from customers, suppliers, consultants, universities, funding and training institutions. These networks...

Developing Biotechnology Clusters in Non-high Technology Regions—The Case of Austria

This paper explores the role of distant knowledge links and policy actions for the development of biotechnology clusters. It seeks to challenge the prevailing view that the birth and early development of high technology industries are always spontaneous phenomena which are mainly based on local knowledge. Departing from the theoretical concept of regional innovation systems (RIS), a distinction between “RIS with strong potentials for high technology industries” and “RIS with weak potentials for high technology industries” will be drawn. It will be argued that in the latter case the development of biotechnology clusters is more dependent on distant knowledge sources and proactive policy efforts to create a favourable environment for high technology activities. Furthermore, it will be shown that a far‐reaching transformation of the regional innovation system is crucial for catching‐up processes of regions which are latecomers in high technology sectors such as biotechnology.

Effects of the Internet on the spatial structure of innovation networks

Research on innovation systems and innovative milieux has shown that the innovation process of companies is strongly interrelated with activities of other firms and organisations. Internet is a new information- and communication-technology with a considerable potential to change such relationships and networks. An often held expectation is that the Internet will allow firms to interact with distant partners more easily and that, as a consequence, innovation networks become independent from geographical space. A contrasting view argues that local and regional networks and innovation systems will keep their importance, due to the fact that tacit knowledge, face-to-face communication and institutional factors are still of key relevance. In the paper we are going to investigate to which extent and how the Internet changes innovation networks of companies. Does the use of Internet stimulate companies to interact with new types of innovation partners or with partners at wider spatial scales? We have analysed the effects of the Internet on innovation-related networks and knowledge-flows of companies by conducting a WWW-survey of Austrian firms amongst other investigations. In the present paper we report on the results of this Websurvey.