IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v11y2020i1d10.1007_s13132-018-0539-8.html
   My bibliography  Save this article

Knowledge Spillovers and Absorptive Capacity—Institutional Evidence from the “German Mittelstand”

Author

Listed:
  • Till Proeger

    (University of Goettingen)

Abstract

Recent extensions to the knowledge spillover theory of entrepreneurship (KSTE) show that the successful commercialization of new knowledge by incumbents depends on their absorptive capacities. For policy-makers focusing on increasing incumbents’ innovative performance, the systematic reduction of knowledge filter through improved absorptive capacities thus becomes a crucial goal. While the general working mechanisms of knowledge filter have been analyzed within the KSTE framework, few institutional solutions to increase absorptive capacities have been put forth. This study provides an initial case study explaining a specific institutional framework fostering the systematic penetration of knowledge filters by incumbent firms in the case of German SMEs. Using a set of 177 in-depth interviews with firm representatives, the system of interrelated organizations, institutional arrangements, shared values, and economic incentives associated with the institutional structures for knowledge spillovers for German SMEs are described. I identify institutional characteristics connected to the dual system of vocational training, regulatory measures, and economic incentives mutually enforcing and fostering broad knowledge spillovers. This exploratory approach enables deriving hypotheses for the further study of knowledge filters as well as policy implications for the design of institutions increasing incumbents’ absorptive capacities.

Suggested Citation

  • Till Proeger, 2020. "Knowledge Spillovers and Absorptive Capacity—Institutional Evidence from the “German Mittelstand”," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(1), pages 211-238, March.
    • Handle: RePEc:spr:jknowl:v:11:y:2020:i:1:d:10.1007_s13132-018-0539-8
    DOI: 10.1007/s13132-018-0539-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-018-0539-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13132-018-0539-8?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jensen, Morten Berg & Johnson, Bjorn & Lorenz, Edward & Lundvall, Bengt Ake, 2007. "Forms of knowledge and modes of innovation," Research Policy, Elsevier, vol. 36(5), pages 680-693, June.
    2. Mueller, Pamela, 2006. "Exploring the knowledge filter: How entrepreneurship and university-industry relationships drive economic growth," Research Policy, Elsevier, vol. 35(10), pages 1499-1508, December.
    3. Wolfgang Maennig & Michaela Ölschläger & Hans-Jörg Schmidt-Trenz, 2015. "Organisations and regional innovative capability: the case of the chambers of commerce and industry in Germany," Environment and Planning C, , vol. 33(4), pages 811-827, August.
    4. Zoltán J. Acs & David B. Audretsch & Erik E. Lehmann & Georg Licht, 2016. "National systems of entrepreneurship," Small Business Economics, Springer, vol. 46(4), pages 527-535, April.
    5. David B. Audretsch & Max Keilbach, 2007. "The Theory of Knowledge Spillover Entrepreneurship," Journal of Management Studies, Wiley Blackwell, vol. 44(7), pages 1242-1254, November.
    6. Haifeng Qian & Hyejin Jung, 2017. "Solving the knowledge filter puzzle: absorptive capacity, entrepreneurship and regional development," Small Business Economics, Springer, vol. 48(1), pages 99-114, January.
    7. Maribel Guerrero & David Urbano, 2014. "Academics’ start-up intentions and knowledge filters: an individual perspective of the knowledge spillover theory of entrepreneurship," Small Business Economics, Springer, vol. 43(1), pages 57-74, June.
    8. 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.
    9. Bo Carlsson & Zoltán J. Ács & David B. Audretsch & Pontus Braunerhjelm, 2015. "Knowledge creation, entrepreneurship, and economic growth: a historical review," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 5, pages 71-107, Edward Elgar Publishing.
    10. Robert Huggins & Andrew Johnston & Piers Thompson, 2012. "Network Capital, Social Capital and Knowledge Flow: How the Nature of Inter-organizational Networks Impacts on Innovation," Industry and Innovation, Taylor & Francis Journals, vol. 19(3), pages 203-232, April.
    11. David B. Audretsch (ed.), 2006. "Entrepreneurship, Innovation and Economic Growth," Books, Edward Elgar Publishing, number 4130.
    12. Daniel Schiller & Javier Revilla Diez, 2010. "Local embeddedness of knowledge spillover agents: Empirical evidence from German star scientists," Papers in Regional Science, Wiley Blackwell, vol. 89(2), pages 275-294, June.
    13. Cappelli, Riccardo & Czarnitzki, Dirk & Kraft, Kornelius, 2014. "Sources of spillovers for imitation and innovation," Research Policy, Elsevier, vol. 43(1), pages 115-120.
    14. K. J. Arrow, 1971. "The Economic Implications of Learning by Doing," Palgrave Macmillan Books, in: F. H. Hahn (ed.), Readings in the Theory of Growth, chapter 11, pages 131-149, Palgrave Macmillan.
    15. Thomä, Jörg, 2017. "DUI mode learning and barriers to innovation - the case of Germany," ifh Working Papers 7 (2017), Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    16. Wolfgang Maennig & Michaela Olschlager, 2011. "Innovative Milieux and Regional Competitiveness: The Role of Associations and Chambers of Commerce and Industry in Germany," Regional Studies, Taylor & Francis Journals, vol. 45(4), pages 441-452.
    17. Audretsch, David B. & Keilbach, Max C. & Lehmann, Erik E., 2006. "Entrepreneurship and Economic Growth," OUP Catalogue, Oxford University Press, number 9780195183511.
    18. Christopher Hayter, 2013. "Conceptualizing knowledge-based entrepreneurship networks: perspectives from the literature," Small Business Economics, Springer, vol. 41(4), pages 899-911, December.
    19. Niccolò Ghio & Massimiliano Guerini & Erik Lehmann & Cristina Rossi-Lamastra, 2015. "The emergence of the knowledge spillover theory of entrepreneurship," Small Business Economics, Springer, vol. 44(1), pages 1-18, January.
    20. David Audretsch & Rosa Caiazza, 2016. "Technology transfer and entrepreneurship: cross-national analysis," The Journal of Technology Transfer, Springer, vol. 41(6), pages 1247-1259, December.
    21. Robert Huggins & Piers Thompson, 2015. "Entrepreneurship, innovation and regional growth: a network theory," Small Business Economics, Springer, vol. 45(1), pages 103-128, June.
    22. Pontus Braunerhjelm & Zoltán J. Ács & David B. Audretsch & Bo Carlsson, 2015. "The missing link: knowledge diffusion and entrepreneurship in endogenous growth," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 6, pages 108-128, Edward Elgar Publishing.
    23. David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468, December.
    24. Audretsch, David & Braunerhjelm, Pontus & Acs, Zoltán J & Carlsson, Bo, 2004. "The Missing Link: The Knowledge Filter and Entrepreneurship in Endogenous Growth," CEPR Discussion Papers 4783, C.E.P.R. Discussion Papers.
    25. Haifeng Qian & Zoltán J. Ács, 2015. "An absorptive capacity theory of knowledge spillover entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 9, pages 161-173, Edward Elgar Publishing.
    26. Audretsch, David B. & Keilbach, Max, 2008. "Resolving the knowledge paradox: Knowledge-spillover entrepreneurship and economic growth," Research Policy, Elsevier, vol. 37(10), pages 1697-1705, December.
    27. Pekka Stenholm & Zoltán J. Ács & Robert Wuebker, 2015. "Exploring country-level institutional arrangements on the rate and type of entrepreneurial activity," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 20, pages 387-404, Edward Elgar Publishing.
    28. Chengli Shu & Cuijuan Liu & Shanxing Gao & Mark Shanley, 2014. "The Knowledge Spillover Theory of Entrepreneurship in Alliances," Entrepreneurship Theory and Practice, , vol. 38(4), pages 913-940, July.
    29. Daniel Feser & Till Proeger, 2017. "Asymmetric information as a barrier to knowledge spillovers in expert markets," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 211-232, March.
    30. Nigel Driffield & James H. Love, 2005. "Who Gains From Whom? Spillovers, Competition And Technology Sourcing In The Foreign‐Owned Sector Of Uk Manufacturing," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(5), pages 663-686, November.
    31. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    32. Yang, Hongyan & Steensma, H. Kevin, 2014. "When do firms rely on their knowledge spillover recipients for guidance in exploring unfamiliar knowledge?," Research Policy, Elsevier, vol. 43(9), pages 1496-1507.
    33. Thomä, Jörg, 2017. "DUI mode learning and barriers to innovation—A case from Germany," Research Policy, Elsevier, vol. 46(7), pages 1327-1339.
    34. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
    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. Dung Phuong Hoang & Lan Khanh Chu, 2023. "Progression to Higher Economic Complexity: The Role of Institutions," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(4), pages 4339-4366, December.
    2. Xiuying Ma & Fei Jia & Hong Jiang & Xiangyun Xu, 2022. "The Impact of Non-R&D Intangible Capital on TFP Growth: Evidence from Multi-country Industry Level Data," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2890-2910, December.
    3. Erik E. Lehmann & Matthias Menter & Katharine Wirsching, 2022. "University spillovers, absorptive capacities, and firm performance," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(1), pages 125-150, March.
    4. Matthies, Eike & Thomä, Jörg & Bizer, Kilian, 2022. "A hidden source of innovation? Revisiting the impact of initial vocational training on technological innovation," ifh Working Papers 33/2022, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh), revised 2022.
    5. Lattacher, Wolfgang & Gregori, Patrick & Holzmann, Patrick & Schwarz, Erich J., 2021. "Knowledge spillover in entrepreneurial emergence: A learning perspective," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    6. Proeger, Till & Meub, Lukas & Bizer, Kilian, 2021. "Webscraping als Instrument zur tagesaktuellen und umfassenden digitalen Analyse des Handwerks," Göttinger Beiträge zur Handwerksforschung 55, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).

    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. Proeger, Till & Runst, Petrik, 2019. "Digitization and knowledge spillover effectiveness: Evidence from the "German Mittelstand"," ifh Working Papers 20/2019, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    2. Proeger, Till, 2017. "Knowledge spillovers and absorptive capacity - institutional evidence from the 'German Mittelstand'," University of Göttingen Working Papers in Economics 320, University of Goettingen, Department of Economics, revised 2017.
    3. Daniel Feser & Till Proeger, 2017. "Asymmetric information as a barrier to knowledge spillovers in expert markets," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 211-232, March.
    4. Feser, Daniel & Proeger, Till, 2015. "Asymmetric information as a barrier to knowledge spillovers in expert markets," University of Göttingen Working Papers in Economics 259, University of Goettingen, Department of Economics.
    5. Till Proeger & Petrik Runst, 2020. "Digitization and Knowledge Spillover Effectiveness—Evidence from the “German Mittelstand”," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(4), pages 1509-1528, December.
    6. Silveli Cristo-Andrade & João J. Ferreira, 2020. "Knowledge spillovers and strategic entrepreneurship: what researches and approaches?," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 263-286, March.
    7. Lattacher, Wolfgang & Gregori, Patrick & Holzmann, Patrick & Schwarz, Erich J., 2021. "Knowledge spillover in entrepreneurial emergence: A learning perspective," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    8. Haifeng Qian, 2018. "Knowledge-Based Regional Economic Development: A Synthetic Review of Knowledge Spillovers, Entrepreneurship, and Entrepreneurial Ecosystems," Economic Development Quarterly, , vol. 32(2), pages 163-176, May.
    9. Niccolò Ghio & Massimiliano Guerini & Erik Lehmann & Cristina Rossi-Lamastra, 2015. "The emergence of the knowledge spillover theory of entrepreneurship," Small Business Economics, Springer, vol. 44(1), pages 1-18, January.
    10. David B. Audretsch & Erik E. Lehmann & Matthias Menter, 2016. "Public cluster policy and new venture creation," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(4), pages 357-381, December.
    11. 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.
    12. David Audretsch & Maksim Belitski, 2013. "The missing pillar: the creativity theory of knowledge spillover entrepreneurship," Small Business Economics, Springer, vol. 41(4), pages 819-836, December.
    13. Rui Torres de Oliveira & Simona Gentile-Lüdecke & Sandra Figueira, 2022. "Barriers to innovation and innovation performance: the mediating role of external knowledge search in emerging economies," Small Business Economics, Springer, vol. 58(4), pages 1953-1974, April.
    14. Tsvetkova, Alexandra, 2016. "Do diversity, creativity and localized competition promote endogenous firm formation? Evidence from a high-tech US industry," MPRA Paper 72349, University Library of Munich, Germany.
    15. Roberta Capello & Camilla Lenzi, 2016. "Innovation modes and entrepreneurial behavioral characteristics in regional growth," Small Business Economics, Springer, vol. 47(4), pages 875-893, December.
    16. Colombelli, Alessandra & Quatraro, Francesco, 2018. "New firm formation and regional knowledge production modes: Italian evidence," Research Policy, Elsevier, vol. 47(1), pages 139-157.
    17. Pontus Braunerhjelm & Ding Ding & Per Thulin, 2016. "Labour as a knowledge carrier: how increased mobility influences entrepreneurship," The Journal of Technology Transfer, Springer, vol. 41(6), pages 1308-1326, December.
    18. Robert Huggins & Piers Thompson, 2015. "Entrepreneurship, innovation and regional growth: a network theory," Small Business Economics, Springer, vol. 45(1), pages 103-128, June.
    19. Svenja Jarchow & Andrea Röhm, 2019. "Patent-based investment funds: from invention to innovation," The Journal of Technology Transfer, Springer, vol. 44(2), pages 404-433, April.
    20. David Bruce Audretsch & Maksim Belitski & Rosa Caiazza, 2021. "Start-ups, Innovation and Knowledge Spillovers," The Journal of Technology Transfer, Springer, vol. 46(6), pages 1995-2016, December.

    More about this item

    Keywords

    Entrepreneurship; Knowledge filter; Knowledge spillover theory of entrepreneurship; Networks; Small and medium enterprises;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

    Statistics

    Access and download statistics

    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:spr:jknowl:v:11:y:2020:i:1:d:10.1007_s13132-018-0539-8. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.