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Essential ingredients for radical innovations? The role of (un‐)related variety and external linkages in Germany

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  • Kolja Hesse
  • Dirk Fornahl

Abstract

The role of radical innovations for the economy has received increasing attention by German policy‐makers. This paper investigates how (un‐)related variety and external linkages influence these innovations in German labour market regions. Evidence is found that related and unrelated knowledge capabilities both support the emergence of radical innovations, although strong related capabilities are especially important. External linkages have an inverted u‐shape relation to radically new ideas and can act as substitute for missing unrelated competences in a region. The results shed new light on the emergence of radical innovations and thus have interesting scientific and practical implications. El papel de las innovaciones radicales para la economía ha recibido cada vez más atención por parte de los responsables políticos alemanes. Este artículo investiga la forma en que la variedad (no) relacionada y los vínculos externos influyen en estas innovaciones en las regiones del mercado laboral alemán. Se encontró evidencia de que las capacidades de conocimiento, tanto relacionadas como no relacionadas, apoyan el surgimiento de innovaciones radicales, aunque son especialmente importantes las capacidades fuertemente relacionadas. Los vínculos externos muestran una relación en forma de “U” invertida con las ideas radicalmente nuevas y pueden actuar como sustituto de las competencias no relacionadas que no existen en una región. Los resultados arrojan nueva luz sobre el surgimiento de innovaciones radicales y, por lo tanto, tienen interesantes implicaciones científicas y prácticas. ドイツの政策立案者らは、経済のための急進的イノベーションの役割に注目している。本稿では、関連性のある(または関連性のない)多様性および外部リンケージが、ドイツの労働市場地域において、経済のための急進的イノベーションにどのように影響を及ぼすかを検討する。特に関連性の強いケイパビリティが重要ではあるものの、関連の有無に関わらず知識のケイパビリティが急進的イノベーションの発生を支持していることを示すエビデンスが認められる。外部リンケージは、新しい急進的なアイデアと逆U字型の関係にあり、ある地域では欠落している関連のないコンピテンシーの代替として機能することができる。

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  • Kolja Hesse & Dirk Fornahl, 2020. "Essential ingredients for radical innovations? The role of (un‐)related variety and external linkages in Germany," Papers in Regional Science, Wiley Blackwell, vol. 99(5), pages 1165-1183, October.
    • Handle: RePEc:bla:presci:v:99:y:2020:i:5:p:1165-1183
    DOI: 10.1111/pirs.12527
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    Cited by:

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    3. Kopka, Alexander & Grashof, Nils, 2022. "Artificial intelligence: Catalyst or barrier on the path to sustainability?," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    4. Ron Boschma & Ernest Miguelez & Rosina Moreno & Diego B. Ocampo-Corrales, 2021. "Technological breakthroughs in European regions: the role of related and unrelated combinations," Papers in Evolutionary Economic Geography (PEEG) 2118, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jun 2021.
    5. Hesse, Kolja, 2020. "Unlocking the radical potential of German innovators How can R&D policy foster radical innovation?," Papers in Innovation Studies 2020/5, Lund University, CIRCLE - Centre for Innovation Research.
    6. Nils Grashof & Alexander Kopka, 2023. "Artificial intelligence and radical innovation: an opportunity for all companies?," Small Business Economics, Springer, vol. 61(2), pages 771-797, August.
    7. Nana Yang & Qiming Liu, 2023. "How does industrial agglomeration affect regional innovation? A spatial econometric analysis," Growth and Change, Wiley Blackwell, vol. 54(4), pages 826-852, December.
    8. Doehne, Malte & Rost, Katja, 2021. "Long waves in the geography of innovation: The rise and decline of regional clusters of creativity over time," Research Policy, Elsevier, vol. 50(9).
    9. Naudé, Wim & Nagler, Paula, 2022. "The Ossified Economy: The Case of Germany, 1870-2020," IZA Discussion Papers 15607, Institute of Labor Economics (IZA).
    10. Dirk Fornahl & Nils Grashof & Alexander Kopka, 2021. "Do not neglect the periphery?! - the emergence and diffusion of radical innovations," Bremen Papers on Economics & Innovation 2102, University of Bremen, Faculty of Business Studies and Economics.

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    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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