Do Local Knowledge Spillovers Matter for Development? An Empirical Study of Uruguay’s Software Cluster
AbstractSummary In economically advanced countries, local knowledge spillovers (LKS) between agglomerated firms are seen as major drivers of regional innovation and growth. In contrast, innovation research focusing on developing countries has emphasized international linkages, and has largely neglected LKS. This paper assesses the importance of LKS for innovation of clustered firms in a developing-country setting. An econometric analysis with new survey data from software firms in Montevideo, Uruguay, shows that LKS have a significantly positive impact on firms' innovation performance through labor mobility, company spin-offs, and informal interactions among actors. LKS are also shown to be highly important relative to other sources of knowledge.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Eindhoven Center for Innovation Studies (ECIS) in its series Eindhoven Center for Innovation Studies (ECIS) working paper series with number 06-11.
Date of creation: Oct 2006
Date of revision: Oct 2006
Contact details of provider:
Web page: http://ecis.ieis.tue.nl/
Other versions of this item:
- Kesidou, Effie & Romijn, Henny, 2008. "Do Local Knowledge Spillovers Matter for Development? An Empirical Study of Uruguay's Software Cluster," World Development, Elsevier, vol. 36(10), pages 2004-2028, October.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jojo Jacob & Adam Szirmai, 2007. "International Knowledge Spillovers to Developing Countries: The Case of Indonesia," Review of Development Economics, Wiley Blackwell, vol. 11(3), pages 550-565, 08.
- Jaffe, A.B. & Trajtenberg, M., 1992.
"Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations,"
14-92, Tel Aviv.
- Jaffe, Adam B & Trajtenberg, Manuel & Henderson, Rebecca, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 577-98, August.
- Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," NBER Working Papers 3993, National Bureau of Economic Research, Inc.
- Anabel Marin & Martin Bell, 2006. "Technology spillovers from Foreign Direct Investment (FDI): the active role of MNC subsidiaries in Argentina in the 1990s," Journal of Development Studies, Taylor & Francis Journals, vol. 42(4), pages 678-697.
- Marjolein Canie�ls & Henny Romijn, 2003. "Dynamic Clusters in Developing Countries: Collective Efficiency and Beyond," Oxford Development Studies, Taylor & Francis Journals, vol. 31(3), pages 275-292.
- Breschi, Stefano & Lissoni, Francesco, 2001.
"Knowledge Spillovers and Local Innovation Systems: A Critical Survey,"
Industrial and Corporate Change,
Oxford University Press, vol. 10(4), pages 975-1005, December.
- Stefano Breschi & Francesco Lissoni, 2001. "Knowledge spillovers and local innovation systems: a critical survey," LIUC Papers in Economics 84, Cattaneo University (LIUC).
- Breschi, Stefano & Lissoni, Francesco, 2000. "Knowledge Spillovers And Local Innovation Systems: A Critical Survey," ERSA conference papers ersa00p362, European Regional Science Association.
- Blomström, Magnus & Sjöholm, Fredrik, 1998.
"Technology Transfer and Spillovers: Does Local Participation with Multinationals Matter?,"
Working Paper Series in Economics and Finance
268, Stockholm School of Economics.
- Blomstrom, Magnus & Sjoholm, Fredrik, 1999. "Technology transfer and spillovers: Does local participation with multinationals matter?1," European Economic Review, Elsevier, vol. 43(4-6), pages 915-923, April.
- Magnus Blomstrom & Fredrik Sjoholm, 1998. "Technology Transfer and Spillovers? Does Local Participation with Multinationals Matter?," NBER Working Papers 6816, National Bureau of Economic Research, Inc.
- Blomström, Magnus & Sjöholm, Fredrik, 1998. "Technology, Transfer and Spillovers: Does Local Participation With Multinationals Matter?," CEPR Discussion Papers 2048, C.E.P.R. Discussion Papers.
- Paul Almeida & Bruce Kogut, 1999. "Localization of Knowledge and the Mobility of Engineers in Regional Networks," Management Science, INFORMS, vol. 45(7), pages 905-917, July.
- Visser, Evert-jan, 1999. "A Comparison of Clustered and Dispersed Firms in the Small-Scale Clothing Industry of Lima," World Development, Elsevier, vol. 27(9), pages 1553-1570, September.
- Giuliani, Elisa & Bell, Martin, 2005. "The micro-determinants of meso-level learning and innovation: evidence from a Chilean wine cluster," Research Policy, Elsevier, vol. 34(1), pages 47-68, February.
- Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February.
- Kokko, Ari, 1994. "Technology, market characteristics, and spillovers," Journal of Development Economics, Elsevier, vol. 43(2), pages 279-293, April.
- Elisa Giuliani, 2007. "The selective nature of knowledge networks in clusters: evidence from the wine industry," Journal of Economic Geography, Oxford University Press, vol. 7(2), pages 139-168, March.
- Bell, Martin & Albu, Michael, 1999. "Knowledge Systems and Technological Dynamism in Industrial Clusters in Developing Countries," World Development, Elsevier, vol. 27(9), pages 1715-1734, September.
- Zucker, Lynne G & Darby, Michael R & Brewer, Marilynn B, 1998. "Intellectual Human Capital and the Birth of U.S. Biotechnology Enterprises," American Economic Review, American Economic Association, vol. 88(1), pages 290-306, March.
- Tibor Scitovsky, 1954. "Two Concepts of External Economies," Journal of Political Economy, University of Chicago Press, vol. 62, pages 143.
- Jürgen Bitzer, 1997. "The Computer Software Industry in East and West: Do Eastern European Countries Need a Specific Science and Technology Policy?," Discussion Papers of DIW Berlin 149, DIW Berlin, German Institute for Economic Research.
- Elena Huergo & Jordi Jaumandreu, 2004. "How Does Probability of Innovation Change with Firm Age?," Small Business Economics, Springer, vol. 22(3_4), pages 193-207, 04.
- Verspagen, B. & Schoenmakers, W., 2000.
"The spatial dimension of knowledge spillovers in Europe: evidence from firm patenting data,"
Eindhoven Center for Innovation Studies (ECIS) working paper series
00.07, Eindhoven Center for Innovation Studies (ECIS).
- Verspagen,Bert & Schoenmakers,Wilfred, 2000. "The Spatial Dimension of Knowledge Spillovers in Europe: Evidence from Firm Patenting Data," Research Memorandum 016, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- Effie Kesidou & Marjolein Caniels & Henny Romijn, 2007. "Mechanisms of Local Knowledge Spillovers: Evidence from the Software Cluster in Uruguay," Eindhoven Center for Innovation Studies (ECIS) working paper series 07-02, Eindhoven Center for Innovation Studies (ECIS), revised Feb 2007.
- Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
- Marjolein C. J. Caniels & Henny A. Romijn, 2003.
"Firm-level knowledge accumulation and regional dynamics,"
Industrial and Corporate Change,
Oxford University Press, vol. 12(6), pages 1253-1278, December.
- Caniels, M. & Romijn, H., 2001. "Firm-level knowledge accumulation and regional dynamics," Eindhoven Center for Innovation Studies (ECIS) working paper series 02.02, Eindhoven Center for Innovation Studies (ECIS).
- Fosfuri, Andrea & Ronde, Thomas, 2004. "High-tech clusters, technology spillovers, and trade secret laws," International Journal of Industrial Organization, Elsevier, vol. 22(1), pages 45-65, January.
- Rabellotti, Roberta, 1995. "Is there an "industrial district model"? Footwear districts in Italy and Mexico compared," World Development, Elsevier, vol. 23(1), pages 29-41, January.
- Stewart, Frances & Ghani, Ejaz, 1991. "How significant are externalities for development?," World Development, Elsevier, vol. 19(6), pages 569-594, June.
- Harhoff, Dietmar & Henkel, Joachim & von Hippel, Eric, 2003. "Profiting from voluntary information spillovers: how users benefit by freely revealing their innovations," Research Policy, Elsevier, vol. 32(10), pages 1753-1769, December.
- Schmitz, Hubert & Nadvi, Khalid, 1999. "Clustering and Industrialization: Introduction," World Development, Elsevier, vol. 27(9), pages 1503-1514, September.
- Dosi, Giovanni, 1988. "Sources, Procedures, and Microeconomic Effects of Innovation," Journal of Economic Literature, American Economic Association, vol. 26(3), pages 1120-71, September.
- Tewari, Meenu, 1999. "Successful Adjustment in Indian Industry: the Case of Ludhiana's Woolen Knitwear Cluster," World Development, Elsevier, vol. 27(9), pages 1651-1671, September.
- Bruno Cassiman & Reinhilde Veugelers, 2002. "R&D Cooperation and Spillovers: Some Empirical Evidence from Belgium," American Economic Review, American Economic Association, vol. 92(4), pages 1169-1184, September.
- Mohnen,Pierre & Hoareau,Cathy, 2002.
"What type of enterprise forges close links with universities and government labs? Evidence from CIS2,"
009, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- Masao Nakamura & Pierre Mohnen & Cathy Hoareau, 2003. "What type of enterprise forges close links with universities and government labs? Evidence from CIS 2," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(2-3), pages 133-145.
- Cathy Hoareau & Pierre Mohnen, 2002. "What Type Of Enterprise Forges Close Links With Universities And Government Labs? Evidence From CIS 2," CIRANO Working Papers 2002s-25, CIRANO.
- Naresh K. Malhotra & Sung S. Kim & Ashutosh Patil, 2006. "Common Method Variance in IS Research: A Comparison of Alternative Approaches and a Reanalysis of Past Research," Management Science, INFORMS, vol. 52(12), pages 1865-1883, December.
- Dahlman, Carl J. & Ross-Larson, Bruce & Westphal, Larry E., 1987. "Managing technological development: Lessons from the newly industrializing countries," World Development, Elsevier, vol. 15(6), pages 759-775, June.
- Saxenian, AnnaLee & Hsu, Jinn-Yuh, 2001. "The Silicon Valley-Hsinchu Connection: Technical Communities and Industrial Upgrading," Industrial and Corporate Change, Oxford University Press, vol. 10(4), pages 893-920, December.
- Manning, Stephan & Ricart, Joan E. & Rosatti Rique, Maria Soledad & Lewin, Arie Y., 2010. "From blind spots to hotspots: How knowledge services clusters develop and attract foreign investment," Journal of International Management, Elsevier, vol. 16(4), pages 369-382, December.
- Manning, Stephan, 2013. "New Silicon Valleys or a new species? Commoditization of knowledge work and the rise of knowledge services clusters," Research Policy, Elsevier, vol. 42(2), pages 379-390.
- Ewert P. J. Kleynhans & Sibulele Zwedala, 2012. "The Contribution of FDI, Technology and R&D to Spillovers in Industrial Development: A South African Firm-Level Investigation," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 10(4 (Winter), pages 341-359.
- Ciravegna, Luciano, 2011. "Technological learning in the Silicon Valleys of Latin America," MPRA Paper 36832, University Library of Munich, Germany.
- Basant, Rakesh & Chandra, Pankaj & Upadhyayula, Rajesh, . "Knowledge Flows and Capability Building in the Indian IT Sector: A Comparative Analysis of Cluster and Non-Cluster Locations," IIMA Working Papers WP2011-10-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carolina Castaldi).
If references are entirely missing, you can add them using this form.