Markus Grillitsch

Combining Knowledge from Different Sources, Channels and Geographical Scales

Abstract The aim of this article is to examine conceptually and empirically how innovative firms combine knowledge (1) provided by different sources, (2) accessed at different spatial scales and (3) acquired through different channels. We add to the conceptual debate by contrasting and synthesising the perspectives offered on these issues by four key concepts, namely the local buzz and global pipelines argument, the knowledge-base approach, the notions of Science–Technology–Innovation and Doing–Using–Interacting modes of innovation as well as the regional innovation systems concept. The empirical part of the article contains an analysis of knowledge-sourcing activities employed by 181 firms belonging to the Austrian automotive supplier industry. Our findings reveal that it is, indeed, combinations of knowledge sourced from different partners located at different spatial scales and acquired through different channels that are relevant. However, it is particular combinations that dominate while others are negligible. Austrian automotive supplier firms combine knowledge provided by customers with knowledge inputs from a variety of other sources. Most of the combinations involve the European or global levels combined with the regional and/or national level. Finally, firms combine spillovers with a variety of other channels to acquire innovation-relevant knowledge.

Regional innovation systems: past – present – future

Since its development in the 1990s, the Regional Innovation Systems (RIS) approach has attracted considerable attention from economic geographers, innovation scholars and policy makers. The RIS approach figures prominently in the scientific discourse about the uneven geography of innovation and the factors that shape the knowledge generation and innovation capacities of regions. The aim of this paper is to reflect about the emergence of the RIS approach, the current debate as well as future challenges. This reflection paper is guided by four overarching research questions: What are the origins and theoretical foundations of this approach? What has the RIS approach contributed to innovation studies and economic geography? What are the implications for innovation policy? And what are the recent lines of research and key research challenges in the future? We argue that the contributions of the RIS approach have been substantial. Still the approach has often been applied in a rather static way, more as a heuristic than a coherent theory. The key challenges for current and future research therefore are to move towards a more theory-based, dynamic perspective on RIS, dealing with new path development and the transformation of RIS.

Innovation and knowledge sourcing of modern sectors in old industrial regions: comparing software firms in Moravia-Silesia and Upper Austria:

Old industrial regions in many cases suffer from a predominance of basic and traditional industries as well as a lack of modern sectors and of innovation. Often we find this type of region oriented to traditional sectors and technology paths. The development of new sectors such as software might help to overcome such problems and contribute to diversification and a better innovation performance of such regions. In this context, we examine to what extent the different socioeconomic and institutional background of old industrial regions has an impact on firms’ innovation performance and knowledge sourcing in the new sector. For this purpose we compare software companies in the Czech region of Moravia-Silesia and in the Austrian region of Upper Austria. Both are regions with a considerable industrial tradition but with a quite different historical and institutional background. Whereas Moravia-Silesia region is a part of Czechia – a transformed country with a state socialism and central planning background – Upper Austria is a relatively wealthy region within an advanced market economy with a social partnership background. In this paper we investigate to what extent software firms in these two regions differ in their innovation activities and knowledge-sourcing patterns and how this is related to the institutional background and characteristics of their respective regional innovation systems.

Knowledge Sourcing and Innovation in Austrian ICT Companies—How Does Geography Matter?

Innovation is regarded as a highly open and interactive process, where companies absorb, generate and apply knowledge relying both on internal and external sources. They maintain links to various knowledge sources from local to global levels using particular channels for acquiring such knowledge. Although global knowledge networks might render the regional environment less important, we argue that geography still matters i) as location for innovation activities and ii) as multiscalar pattern of knowledge relationships. We investigate, therefore, to what extent firms are using particular knowledge sources from regional, national or international spatial levels, and to what extent their innovativeness can be explained by the knowledge sourcing pattern and their location. The paper draws on data from 110 ICT companies in three Austrian regions and uses both descriptive tools and multivariate models. The variety of knowledge sources used on regional as well as international levels and the engagement in R&D cooperations are identified as key factors for innovation in the ICT-sector, whereas company location had less direct effect.

Exogenous sources of regional industrial change: Attraction and absorption of non-local knowledge for new path development

The role of exogenous sources of new path development has been underplayed in the literature on regional industrial change so far. The aim of this article is to explore in a conceptual way under which conditions and in what ways non-local knowledge can lead to new path development in different regional innovation systems (RISs). We distinguish between organizationally thick and diversified RISs, thick and specialized RISs and thin RISs and argue that these types vary substantially in their needs for exogenous sources as well as in their capacities to attract and absorb knowledge generated elsewhere.

Institutions, smart specialisation dynamics and policy

Smart specialisation features prominently in the European regional policy context. This paper discusses how the configuration of the regional institutional framework affects smart specialisation dynamics and policy. It elaborates why and how institutional diversity and integration promote entrepreneurial discovery processes, spillovers and agglomeration effects, and thereby structural change in regions. Policy challenges arising from the regional institutional framework are identified, discussed and related to well-researched system failures of regional innovation systems.

Does Combinatorial Knowledge Lead to a Better Innovation Performance of Firms

Abstract The knowledge base concept in the past was often applied in its “pure form”, i.e. it was assumed that there are dominant knowledge bases in particular sectors and firms shaping knowledge and innovation processes and related networks. For “analytical sectors” such as biotech, it has been argued that codified knowledge generated by universities and R&D organizations is the key for innovation, whereas “synthetic sectors” such as machinery innovate more incrementally by recombining existing knowledge often drawn from suppliers or service firms. Empirical literature has partly confirmed these patters, but also shown more complex knowledge processes. More recently it has been argued that combinations of different knowledge bases might enhance the innovation performance of firms. For example in “analytical sectors”, firms might benefit not just from new and basic knowledge generated by research, but also from recombining existing and applied knowledge or by drawing on symbolic knowledge. Combinatorial knowledge bases might also be relevant for “synthetic” and “symbolic sectors”, but in different forms. This study investigates for the ICT sector in regions of Austria if the reliance on combinatorial knowledge leads to a better innovation performance than the use of more narrow knowledge bases.

Knowledge Base Combinations and Innovation Performance in Swedish Regions

Abstract The literature on geography of innovation suggests that innovation outcomes depend on a diversity of knowledge inputs, which can be captured with the differentiated knowledge base approach. While knowledge bases are distinct theoretical categories, existing studies stress that innovation often involves combinations of analytical, synthetic, and symbolic knowledge. It remains unclear, though, which combinations are most conducive to innovation at the level of the firm and how this is influenced by the knowledge bases available in the region. This article fills this gap by reviewing the conceptual arguments on how and why certain firm and regional knowledge base combinations relate to firm innovativeness and by investigating these relationships econometrically. The knowledge base is captured using detailed occupational data derived from linked employer–employee data sets merged at the firm level with information from Community Innovation Surveys in Sweden. The results indicate that analytical knowledge outweighs the importance of synthetic and symbolic knowledge and that, however, firms benefit most from being located in a region with a balanced mix of all three knowledge bases.

Institutional Layers, Connectedness and Change: Implications for Economic Evolution in Regions

Abstract The overall objective of this paper is to better understand regional change from institutional and economic perspectives. The paper introduces the concept of institutional layers in order to analyse the interdependencies between institutions of different types and spatial scales, and to investigate institutional change processes in a regional context. It suggests that the diversity and connectedness of institutional layers are key dimensions for explaining economic evolution in regions. Based on these two dimensions, the paper introduces a typology of regions and relates this typology to economic evolution and growth as well as the likelihood of fragmentation, lock-ins and disruptive changes.

Introduction : Combinatorial Knowledge Bases, Regional Innovation, and Development Dynamics

Abstract The special issue zooms in on knowledge dynamics that drive innovation processes and new path development in different regional and sectoral contexts. This investigation rests on the differentiated knowledge base approach, which offers a clear distinction between analytical, synthetic and symbolic types of knowledge and deep insights into their idiosyncrasies. The introduction frames knowledge bases as theoretically discernible and differentiated forms of knowledge creation that are of particular relevance for innovation processes. The knowledge base approach goes beyond sector and regional approaches to innovation and focuses on micro-level dynamics of knowledge creation and knowledge combination within firms, industries and regions. This special issue offers theoretical advances and empirical insights into the causal linkages between such knowledge dynamics, innovation and new path development. It contributes to economic geography in providing an improved understanding of mechanism behind economic growth and development in various sectors and regions as well as to make better sense of the consistent heterogeneity of performance between firms within the same sectors and regions. All this underpins a broad-based innovation policy approach and an active role of policy makers in stimulating novel combinations of differentiated knowledge bases, which shows its roots in the (regional) innovation systems tradition.