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The importance of spatial agglomeration in product innovation: A microgeography perspective

Author

Listed:
  • Seongsoo Jang

    (ESC [Rennes] - ESC Rennes School of Business)

  • Jinwon Kim
  • Max von Zedtwitz

Abstract

This study focuses on how innovation in general and product innovation in particular are influenced by firms' agglomeration in smaller local districts, the so-called microgeography of product innovation. Using spatial analytic methods on the mobile gaming industry in the Seoul Metropolitan Area, this study finds that mobile gaming firms co-locate to form sub-clusters for specializing in specific product innovation activities such as visual complexity, product price, and product upgrade. Furthermore, results show that the relationships between product innovation and sales performance differ across individual firms and sub-clusters. The findings confirm that microgeographic location plays a key role in promoting different product innovation activities within a city-level cluster. One key implication is that regional and district policy makers should consider product innovation policies based on each sub-cluster's specific product innovation potential, due to the heterogeneous agglomeration effects in product innovation activities.

Suggested Citation

  • Seongsoo Jang & Jinwon Kim & Max von Zedtwitz, 2017. "The importance of spatial agglomeration in product innovation: A microgeography perspective," Post-Print hal-02004347, HAL.
    • Handle: RePEc:hal:journl:hal-02004347
    DOI: 10.1016/j.jbusres.2017.05.017
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    Citations

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    Cited by:

    1. Kim, Jinwon & Jang, Seongsoo & Kang, Sanghoon & Kim, SeungHyun (James), 2020. "Why are hotel room prices different? Exploring spatially varying relationships between room price and hotel attributes," Journal of Business Research, Elsevier, vol. 107(C), pages 118-129.
    2. Christian Rammer & Jan Kinne & Knut Blind, 2020. "Knowledge proximity and firm innovation: A microgeographic analysis for Berlin," Urban Studies, Urban Studies Journal Limited, vol. 57(5), pages 996-1014, April.
    3. Lee, Yong-Jin Alex & Jang, Seongsoo & Kim, Jinwon, 2020. "Tourism clusters and peer-to-peer accommodation," Annals of Tourism Research, Elsevier, vol. 83(C).
    4. Laiqun Jin & Xiuyan Liu & Sam Hak Kan Tang, 2021. "High-Technology Zones, Misallocation of Resources among Cities and Aggregate Productivity: Evidence from China," Economics Discussion / Working Papers 21-11, The University of Western Australia, Department of Economics.
    5. Jinwon Kim & Brijesh Thapa & Seongsoo Jang & Eunjung Yang, 2018. "Seasonal Spatial Activity Patterns of Visitors with a Mobile Exercise Application at Seoraksan National Park, South Korea," Sustainability, MDPI, vol. 10(7), pages 1-21, July.
    6. Kinne, Jan & Resch, Bernd, 2017. "Analysing and predicting micro-location patterns of software firms," ZEW Discussion Papers 17-063, ZEW - Leibniz Centre for European Economic Research.
    7. Chu, Shuai & Wu, Mengfei, 2021. "Does the geographic clustering of universities promote their scientific research performance? Evidence from China," GLO Discussion Paper Series 963, Global Labor Organization (GLO).
    8. Chakravarty, Dwarka & Goerzen, Anthony & Musteen, Martina & Ahsan, Mujtaba, 2021. "Global cities: A multi-disciplinary review and research agenda," Journal of World Business, Elsevier, vol. 56(3).
    9. Jan Kinne & Janna Axenbeck, 2020. "Web mining for innovation ecosystem mapping: a framework and a large-scale pilot study," Scientometrics, Springer;Akadémiai Kiadó, vol. 125(3), pages 2011-2041, December.
    10. Li, Yunhe & Tina Zhang, Xiaotian, 2023. "Rent-seeking in bank credit and firm R&D innovation: The role of industrial agglomeration," Journal of Business Research, Elsevier, vol. 159(C).
    11. Fan, Xiaomin & Xu, Yingzhi, 2023. "Does high-speed railway promote urban innovation? Evidence from China," Socio-Economic Planning Sciences, Elsevier, vol. 86(C).
    12. Zhang, Liangliang & Huang, Shoujun, 2022. "Social capital and regional innovation efficiency: The moderating effect of governance quality," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 343-359.
    13. Jang, Seongsoo & Kim, Jinwon, 2022. "Remedying Airbnb COVID-19 disruption through tourism clusters and community resilience," Journal of Business Research, Elsevier, vol. 139(C), pages 529-542.
    14. Pensri, Jaroenwanit & Supot Deboonmee & Uraiporn Kattiyapornpong, 2017. "The Development of Innovative Product Concept: A Case of Organic Rice in Thailand," Journal of Emerging Trends in Marketing and Management, The Bucharest University of Economic Studies, vol. 1(1), pages 171-180, October.
    15. You, Shuyang & Zhou, Kevin Zheng & Jia, Liangding, 2021. "How does human capital foster product innovation? The contingent roles of industry cluster features," Journal of Business Research, Elsevier, vol. 130(C), pages 335-347.
    16. Kang Pan & Feng He & Rong Liu, 2022. "Does High-Tech Industry Agglomeration Promote Its Export Product Upgrading?—Based on the Perspective of Innovation and Openness," Sustainability, MDPI, vol. 14(13), pages 1-23, July.
    17. Qiuyun Zhao & Zeyu Li & Zuoxiang Zhao & Jinqiu Ma, 2019. "Industrial Policy and Innovation Capability of Strategic Emerging Industries: Empirical Evidence from Chinese New Energy Vehicle Industry," Sustainability, MDPI, vol. 11(10), pages 1-17, May.
    18. Ferretti, Marco & Guerini, Massimiliano & Panetti, Eva & Parmentola, Adele, 2022. "The partner next door? The effect of micro-geographical proximity on intra-cluster inter-organizational relationships," Technovation, Elsevier, vol. 111(C).
    19. Zhao, Xin & Nakonieczny, Joanna & Jabeen, Fauzia & Shahzad, Umer & Jia, Wenxing, 2022. "Does green innovation induce green total factor productivity? Novel findings from Chinese city level data," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    20. Yongfeng Zhu & Zilong Wang & Shilei Qiu & Lingling Zhu, 2019. "Effects of Environmental Regulations on Technological Innovation Efficiency in China’s Industrial Enterprises: A Spatial Analysis," Sustainability, MDPI, vol. 11(7), pages 1-19, April.
    21. Weijie Jiang & Kairui Cao & Laiqun Jin & Yongyi Cheng & Qunfang Xu, 2022. "How Do China’s Development Zones Affect Environmental Pollution under Government Domination," Sustainability, MDPI, vol. 14(7), pages 1-18, March.
    22. Jianting Fan & Fusen Zhao & Yuhao Zhao, 2022. "The Potential of Industrial Agglomeration to Promote Pharmaceutical Innovation: Analysis of China's “Medicine Valley” Construction Upsurge," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(6), pages 86-112, November.
    23. Lei Xiong & Cheng-Lein Teng & Bo-Wei Zhu & Gwo-Hshiung Tzeng & Shan-Lin Huang, 2017. "Using the D-DANP-mV Model to Explore the Continuous System Improvement Strategy for Sustainable Development of Creative Communities," IJERPH, MDPI, vol. 14(11), pages 1-37, October.
    24. Burrus, Robert T. & Edward Graham, J. & Jones, Adam T., 2018. "Regional innovation and firm performance," Journal of Business Research, Elsevier, vol. 88(C), pages 357-362.

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