IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v49y2017i6p1247-1265.html
   My bibliography  Save this article

Networks and regional economic growth: A spatial analysis of knowledge ties

Author

Listed:
  • Robert Huggins
  • Piers Thompson

Abstract

In recent years, increased attention has been given to role of inter-organisational knowledge networks in promoting regional economic growth. Nevertheless, the empirical evidence base concerning the extent to which inter-organisational knowledge networks influence regional growth is at best patchy. This article utilises a panel data regression approach to undertake an empirical analysis of economic growth across regions of the UK. Drawing on the concept of network capital, significant differences in the stocks of network capital and flows of knowledge within and across regions are found, which are significantly associated with regional rates of economic growth. The analysis finds that both inter and intra-regional networks shape regional growth processes, highlighting the role of both embedded localised linkages and the importance of accessing more geographically distant knowledge. The study adds weight to the suggestion that one of the most interesting implications of endogenous growth theory relates to the impact of the spatial organisation of regions on flows of knowledge. It is concluded that the adoption of a relational approach to understanding differing economic geographies indicates that network systems are a key component of the regional development mix.

Suggested Citation

  • Robert Huggins & Piers Thompson, 2017. "Networks and regional economic growth: A spatial analysis of knowledge ties," Environment and Planning A, , vol. 49(6), pages 1247-1265, June.
    • Handle: RePEc:sae:envira:v:49:y:2017:i:6:p:1247-1265
    DOI: 10.1177/0308518X17692327
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0308518X17692327
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0308518X17692327?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Andre Torre, 2008. "On the Role Played by Temporary Geographical Proximity in Knowledge Transmission," Regional Studies, Taylor & Francis Journals, vol. 42(6), pages 869-889.
    3. Helen Lawton Smith & Saverio Romeo & Malika Virahsawmy, 2012. "Business and Professional Networks: Scope and Outcomes in Oxfordshire," Environment and Planning A, , vol. 44(8), pages 1801-1818, August.
    4. Rune Dahl Fitjar & Andrés Rodríguez-Pose, 2015. "Networking, context and firm-level innovation: Cooperation through the regional filter in Norway," Papers in Evolutionary Economic Geography (PEEG) 1516, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2015.
    5. Robert Huggins & Piers Thompson, 2014. "A Network-based view of regional growth," Journal of Economic Geography, Oxford University Press, vol. 14(3), pages 511-545.
    6. David Audretsch & Max Keilbach, 2005. "Entrepreneurship capital and regional growth," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 39(3), pages 457-469, September.
    7. Sam Youl Lee & Richard Florida & Zoltan Acs, 2004. "Creativity and Entrepreneurship: A Regional Analysis of New Firm Formation," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 879-891.
    8. Gene M. Grossman & Elhanan Helpman, 1994. "Endogenous Innovation in the Theory of Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 23-44, Winter.
    9. Joel A. C. Baum & Tony Calabrese & Brian S. Silverman, 2000. "Don't go it alone: alliance network composition and startups' performance in Canadian biotechnology," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 267-294, March.
    10. David Doloreux, 2004. "Regional Innovation Systems in Canada: A Comparative Study," Regional Studies, Taylor & Francis Journals, vol. 38(5), pages 479-492.
    11. Martin Andersson & Charlie Karlsson, 2007. "Knowledge in Regional Economic Growth—The Role of Knowledge Accessibility," Industry and Innovation, Taylor & Francis Journals, vol. 14(2), pages 129-149.
    12. Andrea Caragliu & Peter Nijkamp, 2012. "The impact of regional absorptive capacity on spatial knowledge spillovers: the Cohen and Levinthal model revisited," Applied Economics, Taylor & Francis Journals, vol. 44(11), pages 1363-1374, April.
    13. Roel Rutten & Frans Boekema, 2007. "The Learning Region: Foundations, State of the Art, Future," Chapters, in: Roel Rutten & Frans Boekema (ed.), The Learning Region, chapter 1, Edward Elgar Publishing.
    14. 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.
    15. Anne Ter Wal & Ron Boschma, 2011. "Co-evolution of Firms, Industries and Networks in Space," Regional Studies, Taylor & Francis Journals, vol. 45(7), pages 919-933.
    16. Kathleen M. Eisenhardt & Claudia Bird Schoonhoven, 1996. "Resource-based View of Strategic Alliance Formation: Strategic and Social Effects in Entrepreneurial Firms," Organization Science, INFORMS, vol. 7(2), pages 136-150, April.
    17. Mark Setterfield (ed.), 2010. "Handbook of Alternative Theories of Economic Growth," Books, Edward Elgar Publishing, number 12814.
    18. Bill McEvily & Akbar Zaheer, 1999. "Bridging ties: a source of firm heterogeneity in competitive capabilities," Strategic Management Journal, Wiley Blackwell, vol. 20(12), pages 1133-1156, December.
    19. Robert Huggins & Hiro Izushi & Daniel Prokop & Piers Thompson, 2015. "Network evolution and the spatiotemporal dynamics of knowledge sourcing," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 27(7-8), pages 474-499, September.
    20. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    21. Lorenzo Cassi & Anne Plunket, 2015. "Research Collaboration in Co-inventor Networks: Combining Closure, Bridging and Proximities," Regional Studies, Taylor & Francis Journals, vol. 49(6), pages 936-954, June.
    22. Carsten Bergenholtz & Christian Waldstrøm, 2011. "Inter-Organizational Network Studies—A Literature Review," Industry and Innovation, Taylor & Francis Journals, vol. 18(6), pages 539-562, August.
    23. Peter Gordon, 2013. "Thinking about economic growth: cities, networks, creativity and supply chains for ideas," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(3), pages 667-684, June.
    24. Robert Stimson & Roger R. Stough & Peter Nijkamp (ed.), 2011. "Endogenous Regional Development," Books, Edward Elgar Publishing, number 14154.
    25. Keld Laursen & Francesca Masciarelli & Andrea Prencipe, 2012. "Regions Matter: How Localized Social Capital Affects Innovation and External Knowledge Acquisition," Organization Science, INFORMS, vol. 23(1), pages 177-193, February.
    26. M. S. Gertler & Y. M. Levitte, 2005. "Local Nodes in Global Networks: The Geography of Knowledge Flows in Biotechnology Innovation," Industry and Innovation, Taylor & Francis Journals, vol. 12(4), pages 487-507.
    27. Robert Huggins, 2016. "Capital, institutions and urban growth systems," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(2), pages 443-463.
    28. Contractor, F. J. & Lorange, P., 2002. "The growth of alliances in the knowledge-based economy," International Business Review, Elsevier, vol. 11(4), pages 485-502, August.
    29. Alessandra Faggian & Philip McCann, 2006. "Human capital flows and regional knowledge assets: a simultaneous equation approach," Oxford Economic Papers, Oxford University Press, vol. 58(3), pages 475-500, July.
    30. Julie M. Hite & William S. Hesterly, 2001. "The evolution of firm networks: from emergence to early growth of the firm," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 275-286, March.
    31. Zucker, Lynne G. & Darby, Michael R. & Furner, Jonathan & Liu, Robert C. & Ma, Hongyan, 2007. "Minerva unbound: Knowledge stocks, knowledge flows and new knowledge production," Research Policy, Elsevier, vol. 36(6), pages 850-863, July.
    32. Andres Rodriguez-Pose & Riccardo regstdcenzi, 2008. "Research and Development, Spillovers, Innovation Systems, and the Genesis of Regional Growth in Europe," Regional Studies, Taylor & Francis Journals, vol. 42(1), pages 51-67.
    33. Rune Dahl Fitjar & Franz Huber, 2015. "Global pipelines for innovation: insights from the case of Norway," Journal of Economic Geography, Oxford University Press, vol. 15(3), pages 561-583.
    34. Mark Roberts & Mark Setterfield, 2010. "Endogenous Regional Growth: A Critical Survey," Chapters, in: Mark Setterfield (ed.), Handbook of Alternative Theories of Economic Growth, chapter 21, Edward Elgar Publishing.
    35. Audretsch, David B. & Lehmann, Erik E., 2005. "Does the Knowledge Spillover Theory of Entrepreneurship hold for regions?," Research Policy, Elsevier, vol. 34(8), pages 1191-1202, October.
    36. Olivier Bouba-Olga & Marie Ferru & Dominique Pépin, 2012. "Exploring spatial features of science-industry partnerships: A study on French data," Papers in Regional Science, Wiley Blackwell, vol. 91(2), pages 355-375, June.
    37. Robert Huggins & Andrew Johnston, 2009. "Knowledge Networks in an Uncompetitive Region: SME Innovation and Growth," Growth and Change, Wiley Blackwell, vol. 40(2), pages 227-259, June.
    38. Bresnahan,Timothy & Gambardella,Alfonso (ed.), 2004. "Building High-Tech Clusters," Cambridge Books, Cambridge University Press, number 9780521827225.
    39. Roberta Capello & Peter Nijkamp (ed.), 2009. "Handbook of Regional Growth and Development Theories," Books, Edward Elgar Publishing, number 12874.
    40. Deeds, David L. & Hill, Charles W. L., 1996. "Strategic alliances and the rate of new product development: An empirical study of entrepreneurial biotechnology firms," Journal of Business Venturing, Elsevier, vol. 11(1), pages 41-55, January.
    41. Breschi, Stefano & Malerba, Franco, 2001. "The Geography of Innovation and Economic Clustering: Some Introductory Notes," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(4), pages 817-833, December.
    42. Robert Huggins & Piers Thompson, 2015. "Entrepreneurship, innovation and regional growth: a network theory," Small Business Economics, Springer, vol. 45(1), pages 103-128, June.
    43. Ina Drejer & Anker Lund Vinding, 2007. "Searching Near and Far: Determinants of Innovative Firms' Propensity to Collaborate Across Geographical Distance," Industry and Innovation, Taylor & Francis Journals, vol. 14(3), pages 259-275.
    44. Harald Bathelt & Johannes Glückler, 2005. "Resources in Economic Geography: From Substantive Concepts towards a Relational Perspective," Environment and Planning A, , vol. 37(9), pages 1545-1563, September.
    45. Agrawal, Ajay & Kapur, Devesh & McHale, John, 2008. "How do spatial and social proximity influence knowledge flows? Evidence from patent data," Journal of Urban Economics, Elsevier, vol. 64(2), pages 258-269, September.
    46. Philip Cooke & Bjørn Asheim & Ron Boschma & Ron Martin & Dafna Schwartz & Franz Tödtling (ed.), 2011. "Handbook of Regional Innovation and Growth," Books, Edward Elgar Publishing, number 13482.
    47. Stefano Breschi & Francesco Lissoni, 2009. "Mobility of skilled workers and co-invention networks: an anatomy of localized knowledge flows," Journal of Economic Geography, Oxford University Press, vol. 9(4), pages 439-468, July.
    48. Michael Storper, 2009. "Roepke Lecture in Economic Geography—Regional Context and Global Trade," Economic Geography, Taylor & Francis Journals, vol. 85(1), pages 1-21, January.
    49. Roger R. Stough & Robert J. Stimson & Peter Nijkamp, 2011. "An Endogenous Perspective on Regional Development and Growth," Advances in Spatial Science, in: Karima Kourtit & Peter Nijkamp & Roger R. Stough (ed.), Drivers of Innovation, Entrepreneurship and Regional Dynamics, pages 3-20, Springer.
    50. Mario Maggioni & Teodora Uberti, 2009. "Knowledge networks across Europe: which distance matters?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(3), pages 691-720, September.
    51. Edward Malecki, 2010. "Global Knowledge and Creativity: New Challenges for Firms and Regions," Regional Studies, Taylor & Francis Journals, vol. 44(8), pages 1033-1052.
    52. Stephen P. Borgatti & Daniel S. Halgin, 2011. "On Network Theory," Organization Science, INFORMS, vol. 22(5), pages 1168-1181, October.
    53. Elizabeth Garnsey & Paul Heffernan, 2005. "High-technology clustering through spin-out and attraction: The Cambridge case," Regional Studies, Taylor & Francis Journals, vol. 39(8), pages 1127-1144.
    54. Anne Lorentzen, 2008. "Knowledge networks in local and global space," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 20(6), pages 533-545.
    55. Arno Brandt & Claudia Hahn & Stefan Krätke & Matthias Kiese, 2009. "Metropolitan Regions In The Knowledge Economy: Network Analysis As A Strategic Information Tool," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 100(2), pages 236-249, April.
    56. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    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. Xianzhong Cao & Bo Chen & Yuefang Si & Senlin Hu & Gang Zeng, 2021. "Spatio-temporal evolution and mechanism of regional innovation efficiency: Evidence from Yangtze River Delta Urban Agglomeration of China," PLOS ONE, Public Library of Science, vol. 16(7), pages 1-13, July.
    2. Shuai Shi & Kathy Pain, 2020. "Investigating China’s Mid-Yangtze River economic growth region using a spatial network growth model," Urban Studies, Urban Studies Journal Limited, vol. 57(14), pages 2973-2993, November.
    3. Weidenfeld, Adi & Makkonen, Teemu & Clifton, Nick, 2021. "From interregional knowledge networks to systems," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    4. Caviggioli, Federico & Jensen, Paul & Scellato, Giuseppe, 2020. "Highly skilled migrants and technological diversification in the US and Europe," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    5. Lara Agostini & Federico Caviggioli & Francesco Galati & Barbara Bigliardi, 2020. "A social perspective of knowledge-based innovation: mobility and agglomeration. Introduction to the special section," The Journal of Technology Transfer, Springer, vol. 45(5), pages 1309-1323, October.
    6. Caleb Gallemore & Kristian Roed Nielsen & Kristjan Jespersen, 2019. "The uneven geography of crowdfunding success: Spatial capital on Indiegogo," Environment and Planning A, , vol. 51(6), pages 1389-1406, September.
    7. Robert Huggins & Daniel Prokop & Piers Thompson, 2020. "Universities and open innovation: the determinants of network centrality," The Journal of Technology Transfer, Springer, vol. 45(3), pages 718-757, June.
    8. Piers Thompson & Wenyu Zang, 2022. "A matter of life and death? Knowledge intensity of FDI activities and domestic enterprise," Papers in Regional Science, Wiley Blackwell, vol. 101(5), pages 1157-1179, October.
    9. Villarreal Peralta, Edna María & López, Mario López & García Tapia, Rubén Alan, 2021. "The regional network capital index in Mexico from 2012 to 2016," Technology in Society, Elsevier, vol. 65(C).
    10. Xingjian Liu & Xiaohui Hu, 2018. "Are ‘Sister Cities’ from ‘Sister Provinces’? An Exploratory Study of Sister City Relations (SCRs) in China," Networks and Spatial Economics, Springer, vol. 18(3), pages 473-491, September.
    11. Xianzhong Cao & Bo Chen & Yi Guo & Zhenzhen Yi, 2023. "The Impact of Intra-City and Inter-City Innovation Networks on City Economic Growth: A Case Study of the Yangtze River Delta in China," Land, MDPI, vol. 12(7), pages 1-17, July.
    12. Meiqi Jiao & Debin Du & Wentian Shi & Chunguang Hou & Qinchang Gui, 2021. "Dynamic Absorptive Capability and Innovation Performance: Evidence from Chinese Cities," Sustainability, MDPI, vol. 13(20), pages 1-20, October.
    13. Hongming Zhang & Tieshan Sun & Yuanxi Li, 2022. "Network capital and economic growth of major urban agglomeration regions in China," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(S2), pages 60-75, November.
    14. Jasinska-Biliczak Anna & Kowal Jolanta, 2020. "Innovation Capability Development in Regional Entrepreneurship: The Case of Economies in Transition," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 6-32.
    15. Wenfang Fu & Chuanjian Luo & Modan Yan, 2023. "Does Urban Agglomeration Promote the Development of Cities? Evidence from the Urban Network Externalities," Sustainability, MDPI, vol. 15(12), pages 1-20, June.

    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. Robert Huggins & Piers Thompson, 2015. "Entrepreneurship, innovation and regional growth: a network theory," Small Business Economics, Springer, vol. 45(1), pages 103-128, June.
    2. Robert Huggins & Daniel Prokop & Piers Thompson, 2020. "Universities and open innovation: the determinants of network centrality," The Journal of Technology Transfer, Springer, vol. 45(3), pages 718-757, June.
    3. Robert Huggins & Daniel Prokop, 2017. "Network structure and regional innovation: A study of university–industry ties," Urban Studies, Urban Studies Journal Limited, vol. 54(4), pages 931-952, March.
    4. Frank Lasch & Frank Robert & Frédéric Roy, 2013. "Regional determinants of ICT new firm formation," Small Business Economics, Springer, vol. 40(3), pages 671-686, April.
    5. Enrique Claver-Cortés & Bartolomé Marco-Lajara & Pedro Seva-Larrosa & Lorena Ruiz-Fernández & Eduardo Sánchez-García, 2020. "Explanatory Factors of Entrepreneurship in Food and Beverage Clusters in Spain," Sustainability, MDPI, vol. 12(14), pages 1-22, July.
    6. Corinne Autant-Bernard, 2015. "Que savons-nous de l’impact économique des parcs scientifiques ? Une revue de la littérature," Working Papers halshs-01211662, HAL.
    7. Nicola Cortinovis & Frank van Oort, 2017. "Between spilling over and boiling down: network-mediated spillovers, absorptive capacity and productivity in European regions," Tinbergen Institute Discussion Papers 17-118/VI, Tinbergen Institute.
    8. Robert Huggins & Andrew Johnston, 2009. "Knowledge Networks in an Uncompetitive Region: SME Innovation and Growth," Growth and Change, Wiley Blackwell, vol. 40(2), pages 227-259, June.
    9. Markus Grillitsch & Mikhail Martynovich & Rune Dahl Fitjar & Silje Haus-Reve, 2021. "The black box of regional growth," Journal of Geographical Systems, Springer, vol. 23(3), pages 425-464, July.
    10. Robert Huggins & Andrew Johnston & Rebecca Steffenson, 2008. "Universities, knowledge networks and regional policy," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 1(2), pages 321-340.
    11. Charlie Karlsson & Jonna Rickardsson & Joakim Wincent, 2021. "Diversity, innovation and entrepreneurship: where are we and where should we go in future studies?," Small Business Economics, Springer, vol. 56(2), pages 759-772, February.
    12. Robert J. Stimson, 2014. "Proximity and endogenous regional development," Chapters, in: André Torre & Frédéric Wallet (ed.), Regional Development and Proximity Relations, chapter 1, pages 47-93, Edward Elgar Publishing.
    13. Massón-Guerra, José Luis & Vendrell-Ferrero, Ferran, 2008. "Entrepreneurship Spillover and the determinants of Key Sectors for new business creation: An inter-sectorial approach," MPRA Paper 10748, University Library of Munich, Germany.
    14. Robert Huggins, 2008. "The Evolution of Knowledge Clusters," Economic Development Quarterly, , vol. 22(4), pages 277-289, November.
    15. Rodríguez-Pose, Andrés & Crescenzi, Riccardo, 2012. "R&D, Socio-Economic Conditions and Regional Innovation in the United States," CEPR Discussion Papers 9265, C.E.P.R. Discussion Papers.
    16. repec:elg:eechap:14395_24 is not listed on IDEAS
    17. João Lopes & Mário Franco, 2019. "Review About Regional Development Networks: an Ecosystem Model Proposal," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(1), pages 275-297, March.
    18. Dirk Dohse & Sascha Walter, 2012. "Knowledge context and entrepreneurial intentions among students," Small Business Economics, Springer, vol. 39(4), pages 877-895, November.
    19. Vasilios Kanellopoulos & Georgios Fotopoulos, 2019. "The effect of knowledge spillovers on regional new firm formation: The Greek manufacturing case," Environment and Planning A, , vol. 51(4), pages 1005-1030, June.
    20. Boeker, Warren & Howard, Michael D. & Basu, Sandip & Sahaym, Arvin, 2021. "Interpersonal relationships, digital technologies, and innovation in entrepreneurial ventures," Journal of Business Research, Elsevier, vol. 125(C), pages 495-507.
    21. Alfredo Monte & Sara Moccia & Luca Pennacchio, 2022. "Regional entrepreneurship and innovation: historical roots and the impact on the growth of regions," Small Business Economics, Springer, vol. 58(1), pages 451-473, January.

    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:sae:envira:v:49:y:2017:i:6:p:1247-1265. 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: SAGE Publications (email available below). General contact details of provider: .

    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.