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The Effects of National and International Interaction on Innovation: Evidence from the Irish CIS: 2004--06

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  • Justin Doran
  • Declan Jordan
  • Eoin O'Leary

Abstract

This paper analyses the importance of decisions to interact nationally and internationally for the likelihood of process and product innovation in a sample of Irish firms. The key contribution is to provide an empirical test of the relative importance of geographically proximate versus distant interaction, using a two-step procedure to remove potential endogeneity in interaction decisions. In doing so it finds that only national and only international interaction have the expected positive effects on the probability of innovation, while engaging in both national and international interaction has no effect. The findings support hypotheses on the importance of both geographically proximate and distant interaction for innovation, though the lack of significance for both national and international interaction means there is no evidence to support the proposition that these forms of interaction are complementary.

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File URL: http://hdl.handle.net/10.1080/13662716.2012.711020
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Industry and Innovation.

Volume (Year): 19 (2012)
Issue (Month): 5 (July)
Pages: 371-390

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Handle: RePEc:taf:indinn:v:19:y:2012:i:5:p:371-390

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  24. repec:fth:inseep:9833 is not listed on IDEAS
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Cited by:
  1. Doran, Justin & O'Leary, Eoin, 2013. "The Roles of R&D and networking for innovation by Irish and foreign-owned firms: evidence from the Irish CIS 2006-08," MPRA Paper 47291, University Library of Munich, Germany.

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