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Product development, innovation networks, infrastructure and agglomeration economies


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  • Charlie Karlsson

    (JÃnkÃping International Business School, JÃnkÃping University, P.O. Box 1026, S-55111 JÃnkÃping, Sweden)


The continuos inflow of new products is a fundamental condition for a well-functioning market economy. It has been argued that new products are the outcome of a process which is based upon the principle "novelty by combination". This characterization applies well to the type of product development analyzed in this paper, which comprises the development of new products and the renewal of old products in the Swedish engineering industry through the adoption of a specific type of innovation, namely the incorporation of information technology based components and their pertinent software, i.e. microelectronics. According to the theoretical perspective presented in the paper, a new or a renewed product may result from "random collisions" or from a cautious matching between technical opportunities and customer needs. A necessary condition for such "collisions" or matching to occur is communication and, hence, communication in innovation networks is one key factor in product development. The empirical part of the paper contains an empirical test of the role of establishment characteristics, innovation networks, infrastructure endowment and agglomeration economies for the first use of micro-electronics in product development at the plant level. The empirical results seem to confirm the importance of innovation networks as well as of infrastructure endowment and agglomeration economies for an early use of micro-electronics in product development.

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Bibliographic Info

Article provided by Springer in its journal The Annals of Regional Science.

Volume (Year): 31 (1997)
Issue (Month): 3 ()
Pages: 235-258

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Handle: RePEc:spr:anresc:v:31:y:1997:i:3:p:235-258

Note: Received: October 1994 / Accepted in revised form: November 1996
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Cited by:
  1. Johansson, Börje & Paulsson, Thomas, 2004. "Location of New Industries – The ICT-Sector 1990-2000," Working Paper Series in Economics and Institutions of Innovation 7, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  2. Olof Ejermo & Börje Johansson, 2003. "Process Innovations in a Duopoly with Two Regions," ERSA conference papers ersa03p265, European Regional Science Association.
  3. Ejermo, Olof & Karlsson, Charlie, 2006. "Interregional inventor networks as studied by patent coinventorships," Research Policy, Elsevier, vol. 35(3), pages 412-430, April.
  4. Ejermo, Olof & Karlsson, Charlie, 2004. "Spatial Inventor Networks As Studied by Patent Coinventorship," Working Paper Series in Economics and Institutions of Innovation 17, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  5. Barge-Gil, Andrés, 2011. "Open strategies and innovation performance," MPRA Paper 31298, University Library of Munich, Germany.
  6. Wennberg, Karl & Lindqvist, Göran, 2007. "How do entrepreneurs in clusters contribute to economic growth?," Working Paper Series in Business Administration 2008:3, Stockholm School of Economics.
  7. Elodie Gardet & Caroline Mothe, 2010. "L'évolution du degré de dépendance du pivot au sein de réseaux d'innovation," Post-Print hal-00936920, HAL.
  8. Karl Wennberg & Göran Lindqvist, 2010. "The effect of clusters on the survival and performance of new firms," Small Business Economics, Springer, vol. 34(3), pages 221-241, April.
  9. Ricardo Aláez Aller & Juan Carlos Longás García & Miren Ullibarri Arce, 2001. "La relación entre efectos externos y aglomeración: una aproximación a su estudio a partir de la evidencia empírica disponible," Revista de Estudios Regionales, Universidades Públicas de Andalucía, vol. 3, pages 151-167.
  10. Samira Oukarfi & Maurice Baslé, 2009. "Public-sector financial incentives for business relocation and effectiveness measures based on company profile and geographic zone," The Annals of Regional Science, Springer, vol. 43(2), pages 509-526, June.
  11. Patricia Hemert & Peter Nijkamp & Enno Masurel, 2013. "From innovation to commercialization through networks and agglomerations: analysis of sources of innovation, innovation capabilities and performance of Dutch SMEs," The Annals of Regional Science, Springer, vol. 50(2), pages 425-452, April.
  12. Rosenkranz, Stephanie, 2003. "Simultaneous choice of process and product innovation when consumers have a preference for product variety," Journal of Economic Behavior & Organization, Elsevier, vol. 50(2), pages 183-201, February.
  13. Andersson, Martin & Karlsson, Charlie, 2004. "The Role of Accessibility for the Performance of Regional Innovation Systems," Working Paper Series in Economics and Institutions of Innovation 9, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.


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