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Innovation and cooperation in the small firm sector: Evidence from 'Northern Britain’

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Author Info
Mark Freel
Richard Harrison
Abstract

Freel M. S. and Harrison R. T. (2006) Innovation and cooperation in the small firm sector: evidence from 'Northern Britain’, Regional Studies 40, 289--305. Over the last 20 years, network-based models of innovation-led economic development have grown increasingly popular to both the polity and the academy. In contrast to earlier linear conceptions, innovation is viewed as a systemic phenomenon in which interactive learning and cooperative entrepreneurship are fundamental. The way that systems and, in turn, networks are usually defined is by the volume and characteristics of the linkages that bind them together. Accordingly, drawing upon a recent survey of small firms in Scotland and Northern England (1347 responses), the paper is concerned with mapping the extent of small firm innovation-related networking and understanding the unique contribution such networks make to the successful introduction of new products and processes. Importantly, it investigated the impact of networking on innovation in both manufacturing and services. To this end, the paper notes the positive associations between product innovation success and cooperation with customers and the public sector, and between process innovation success and cooperation with suppliers and universities. It also notes, with caution, the high volume of 'successful’ innovators that did not cooperate to innovate. Innovation Small firms Cooperation Manufacturing Services Freel M. S. and Harrison R. T. (2006) Innovation and cooperation in the small firm sector: evidence from 'Northern Britain’, Regional Studies 40, 289--305. Over the last 20 years, network-based models of innovation-led economic development have grown increasingly popular to both the polity and the academy. In contrast to earlier linear conceptions, innovation is viewed as a systemic phenomenon in which interactive learning and cooperative entrepreneurship are fundamental. The way that systems and, in turn, networks are usually defined is by the volume and characteristics of the linkages that bind them together. Accordingly, drawing upon a recent survey of small firms in Scotland and Northern England (1347 responses), the paper is concerned with mapping the extent of small firm innovation-related networking and understanding the unique contribution such networks make to the successful introduction of new products and processes. Importantly, it investigated the impact of networking on innovation in both manufacturing and services. To this end, the paper notes the positive associations between product innovation success and cooperation with customers and the public sector, and between process innovation success and cooperation with suppliers and universities. It also notes, with caution, the high volume of 'successful’ innovators that did not cooperate to innovate. Innovation Petites entreprises Coopération Industrie Services Freel M. S. and Harrison R. T. (2006) Innovation and cooperation in the small firm sector: evidence from 'Northern Britain’, Regional Studies 40, 289--305. Over the last 20 years, network-based models of innovation-led economic development have grown increasingly popular to both the polity and the academy. In contrast to earlier linear conceptions, innovation is viewed as a systemic phenomenon in which interactive learning and cooperative entrepreneurship are fundamental. The way that systems and, in turn, networks are usually defined is by the volume and characteristics of the linkages that bind them together. Accordingly, drawing upon a recent survey of small firms in Scotland and Northern England (1347 responses), the paper is concerned with mapping the extent of small firm innovation-related networking and understanding the unique contribution such networks make to the successful introduction of new products and processes. Importantly, it investigated the impact of networking on innovation in both manufacturing and services. To this end, the paper notes the positive associations between product innovation success and cooperation with customers and the public sector, and between process innovation success and cooperation with suppliers and universities. It also notes, with caution, the high volume of 'successful’ innovators that did not cooperate to innovate. Innovation Kleine Firmen Zusammenarbeit bei der Herstellung Dienstleistungen Freel M. S. and Harrison R. T. (2006) Innovation and cooperation in the small firm sector: evidence from 'Northern Britain’, Regional Studies 40, 289--305. Over the last 20 years, network-based models of innovation-led economic development have grown increasingly popular to both the polity and the academy. In contrast to earlier linear conceptions, innovation is viewed as a systemic phenomenon in which interactive learning and cooperative entrepreneurship are fundamental. The way that systems and, in turn, networks are usually defined is by the volume and characteristics of the linkages that bind them together. Accordingly, drawing upon a recent survey of small firms in Scotland and Northern England (1347 responses), the paper is concerned with mapping the extent of small firm innovation-related networking and understanding the unique contribution such networks make to the successful introduction of new products and processes. Importantly, it investigated the impact of networking on innovation in both manufacturing and services. To this end, the paper notes the positive associations between product innovation success and cooperation with customers and the public sector, and between process innovation success and cooperation with suppliers and universities. It also notes, with caution, the high volume of 'successful’ innovators that did not cooperate to innovate. Innovación Pequeñas empresas Cooperación Fabricación Servicios

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Article provided by Taylor and Francis Journals in its journal Regional Studies.

Volume (Year): 40 (2006)
Issue (Month): 4 (June)
Pages: 289-305
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  1. Etzkowitz, Henry & Leydesdorff, Loet, 2000. "The dynamics of innovation: from National Systems and "Mode 2" to a Triple Helix of university-industry-government relations," Research Policy, Elsevier, vol. 29(2), pages 109-123, February. [Downloadable!] (restricted)
  2. Love, James H. & Roper, Stephen, 2001. "Location and network effects on innovation success: evidence for UK, German and Irish manufacturing plants," Research Policy, Elsevier, vol. 30(4), pages 643-661, April. [Downloadable!] (restricted)
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  3. Demsetz, Harold, 1988. "The Theory of the Firm Revisited," Journal of Law, Economics and Organization, Oxford University Press, vol. 4(1), pages 141-61, Spring.
  4. Brusco, Sebastiano, 1982. "The Emilian Model: Productive Decentralisation and Social Integration," Cambridge Journal of Economics, Oxford University Press, vol. 6(2), pages 167-84, June.
  5. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-96, September. [Downloadable!] (restricted)
  6. Paul L. Robertson & Richard N. Langlois, 1994. "Innovation, Networks, and Vertical Integration," Industrial Organization 9406006, EconWPA. [Downloadable!]
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  7. Tether, Bruce S., 2002. "Who co-operates for innovation, and why: An empirical analysis," Research Policy, Elsevier, vol. 31(6), pages 947-967, August. [Downloadable!] (restricted)
  8. Feldman, Maryann P, 1994. " Knowledge Complementarity and Innovation," Small Business Economics, Springer, vol. 6(5), pages 363-72, October.
  9. Roper, S., 1998. "Innovation, Networks and Plant Location: Some Evidence for Ireland," Working Papers NIERC. 37, Economic Research Institute of Northern Ireland. [Downloadable!]
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  10. Richardson, G B, 1972. "The Organisation of Industry," Economic Journal, Royal Economic Society, vol. 82(327), pages 883-96, September. [Downloadable!] (restricted)
  11. Alexander Kaufmann, Franz T dtling, 2000. "Systems of Innovation in Traditional Industrial Regions: The Case of Styria in a Comparative Perspective," Regional Studies, Taylor and Francis Journals, vol. 34(1), pages 29-40, February. [Downloadable!] (restricted)
  12. Roper, S., 1996. "Product Innovation and Small Business Growth: A Comparison of the Strategies of German, UK and Irish Companies," Working Papers NIERC. 17, Economic Research Institute of Northern Ireland.
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  13. Martin, Stephen & Scott, John T., 2000. "The nature of innovation market failure and the design of public support for private innovation," Research Policy, Elsevier, vol. 29(4-5), pages 437-447, April. [Downloadable!] (restricted)
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  14. Huggins, Robert, 2001. "Inter-firm network policies and firm performance: evaluating the impact of initiatives in the United Kingdom," Research Policy, Elsevier, vol. 30(3), pages 443-458, March. [Downloadable!] (restricted)
  15. Nooteboom, Bart, 1999. "Innovation, Learning and Industrial Organisation," Cambridge Journal of Economics, Oxford University Press, vol. 23(2), pages 127-50, March.
  16. Nooteboom, Bart, 1999. "Innovation and inter-firm linkages: new implications for policy," Research Policy, Elsevier, vol. 28(8), pages 793-805, November. [Downloadable!] (restricted)
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