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Innovation Ideas and Regional Characteristics: product innovations and export entrepreneurship by firms in Swedish regions
KTH, School of Architecture and the Built Environment (ABE), Transport and Economics (closed 20110301). KTH, School of Industrial Engineering and Management (ITM), Centres, Centre of Excellence for Science and Innovation Studies, CESIS. (Nationalekonomi)
KTH, School of Architecture and the Built Environment (ABE), Transport and Economics (closed 20110301). KTH, School of Industrial Engineering and Management (ITM), Centres, Centre of Excellence for Science and Innovation Studies, CESIS. (Nationalekonomi)
2008 (English)In: Growth and Change, ISSN 0017-4815, E-ISSN 1468-2257, Vol. 39, no 2, 193-224 p.Article in journal (Refereed) Published
Abstract [en]

This paper focuses upon the ways in which characteristics of regions in regards to knowledge sources, communication opportunities, and absorptive capacity influence the development of innovation ideas among existing and potential entrepreneurs. We formulate a model where entrepreneurs or innovating firms introduce new products in a quasi-temporal setting. Market conditions are characterised by monopolistic competition between varieties belonging to the same product group, in which there is entry and exit of varieties. A stochastic process is assumed to generate new innovation ideas as time goes by, and a firm (entrepreneur) who receives such an idea has to transform the idea to an innovation, which in the model is specified as a particular variety combined with a specific destination market. The theoretical model is used as a reference when formulating two regression models, with which we estimate how a set of regional characteristics are associated with the likelihood of innovation ideas across Swedish local labour market regions. In one model, we examine the emergence of new export varieties, and in the second model, we investigate the appearance of new export firms. Results are consistent with the assumption that knowledge and information flows have a positive influence on the frequency of arrival of innovation ideas to firms.

Place, publisher, year, edition, pages
2008. Vol. 39, no 2, 193-224 p.
Keyword [en]
INDUSTRIAL-STRUCTURE, GLOBALIZATION; ECONOMIES, TRADE, COSTS
National Category
Economics
Identifiers
URN: urn:nbn:se:kth:diva-10719DOI: 10.1111/j.1468-2257.2008.00417.xISI: 000255652900001Scopus ID: 2-s2.0-43149123759OAI: oai:DiVA.org:kth-10719DiVA: diva2:227587
Note
QC 20111011Available from: 2009-07-15 Created: 2009-07-15 Last updated: 2017-12-13Bibliographically approved

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