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Related to whom? The impact of organisational and regional capabilities on radical breakthroughs

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  • Kolja Hesse

Abstract

This paper aims to explain the emergence and diffusion of novel combinations in Germany. On the one hand, it scrutinizes on the effect of internal technological diversity. On the other hand, it looks at interactions with other actors and assesses whether relatedness to the overall regional knowledge base or rather being related to specific regional actors improves radical inventive activity in German organisations. It is demonstrated that the emergence of radical novelty is positively influenced by an optimal degree of internal diversity as well as relatedness to actors at the technological frontier. However, for this radical novelty to diffuse, rather diverse actors and cognitive proximity to the regional knowledge base is important. The results call for a more fine-grained picture in the relatedness debate and deliver interesting insights for inventive organisations in terms of partner choice and policy-makers for future initiatives.

Suggested Citation

  • Kolja Hesse, 2020. "Related to whom? The impact of organisational and regional capabilities on radical breakthroughs," Bremen Papers on Economics & Innovation 2005, University of Bremen, Faculty of Business Studies and Economics.
    • Handle: RePEc:atv:wpaper:2005
    DOI: https://doi.org/10.26092/elib/198
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    More about this item

    Keywords

    Relatedness; cognitive proximity; technological diversity; emergence; diffusion; radical innovations;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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