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The effects of the frequency of spatially proximate and distant interaction on innovation by Irish SMEs

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  • Doran, Justin
  • Jordan, Declan
  • O'Leary, Eoin

Abstract

This paper introduces a new measure to test whether more frequent interaction has a positive effect on innovation by SMEs in the South-West and South-East of Ireland. Based on an original survey, it finds that more frequent interaction increases innovation likelihood, with the probability increasing at a diminishing rate. Distant interaction is more valuable than geographically proximate interaction, although there is a tendency for enterprises to concentrate either on local/regional or national/international interaction. The results question the hypothesis that local interaction is more productive and imply that policy should focus on facilitating SME access to distant agents.

Suggested Citation

  • Doran, Justin & Jordan, Declan & O'Leary, Eoin, 2012. "The effects of the frequency of spatially proximate and distant interaction on innovation by Irish SMEs," MPRA Paper 48267, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:48267
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    Cited by:

    1. Robbins Peter & O’Gorman Colm, 2016. "Innovation processes: do they help or hinder new product development outcomes in Irish SMEs?," The Irish Journal of Management, Sciendo, vol. 35(1), pages 104-107, April.
    2. Jean-Marie Dubois & Laurence Lizé & Patrick Rousset, 2020. "Du recrutement à la formation : le renouvellement des compétences au cœur de la politique des entreprises du numérique," Post-Print hal-03023479, HAL.
    3. Timo Mitze & Björn Alecke & Janina Reinkowski & Gerhard Untiedt, 2015. "Linking collaborative R&D strategies with the research and innovation performance of SMEs in peripheral regions: Do spatial and organizational choices make a difference?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 55(2), pages 555-596, December.
    4. Crowley, Frank & Jordan, Declan, 2018. "The trade-off between absorptive capacity and appropriability of the returns to innovation effort," SRERC Working Paper Series SRERCWP2018-2, University College Cork (UCC), Spatial and Regional Economic Research Centre (SRERC).
    5. Martin Mathews & Peter Stokes, 2013. "The creation of trust: the interplay of rationality, institutions and exchange," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 25(9-10), pages 845-866, December.
    6. Frédéric Lainé & Yannick Fondeur, 2020. "Les canaux de recrutement au prisme de la gestion de l’emploi et de la configuration productive de l’entreprise," Post-Print hal-03890804, HAL.
    7. Kafouros, Mario & Wang, Chengqi & Piperopoulos, Panagiotis & Zhang, Mingshen, 2015. "Academic collaborations and firm innovation performance in China: The role of region-specific institutions," Research Policy, Elsevier, vol. 44(3), pages 803-817.
    8. Frank Crowley & Declan Jordan, 2022. "Do local start-ups and knowledge spillovers matter for firm-level R&D investment?," Urban Studies, Urban Studies Journal Limited, vol. 59(5), pages 1085-1102, April.
    9. Stephen Roper & James H. Love, 2018. "Knowledge context, learning and innovation: an integrating framework," Industry and Innovation, Taylor & Francis Journals, vol. 25(4), pages 339-364, April.
    10. Leckel, Anja & Veilleux, Sophie & Dana, Leo Paul, 2020. "Local Open Innovation: A means for public policy to increase collaboration for innovation in SMEs," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    11. Manuela Presutti & Cristina Boari & Antonio Majocchi, 2013. "Inter-organizational geographical proximity and local start-ups' knowledge acquisition: a contingency approach," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 25(5-6), pages 446-467, June.
    12. Robert Huggins & Daniel Prokop & Piers Thompson, 2020. "Universities and open innovation: the determinants of network centrality," The Journal of Technology Transfer, Springer, vol. 45(3), pages 718-757, June.
    13. Huasheng Zhu & Kebi Chen & Yunlong Lian, 2018. "Do Temporary Creative Clusters Promote Innovation in an Emerging Economy?—A Case Study of the Beijing Design Week," Sustainability, MDPI, vol. 10(3), pages 1-21, March.
    14. Charlie Karlsson & Jonna Rickardsson & Joakim Wincent, 2021. "Diversity, innovation and entrepreneurship: where are we and where should we go in future studies?," Small Business Economics, Springer, vol. 56(2), pages 759-772, February.
    15. Jean-Marie Dubois & Laurence Lizé & Patrick Rousset, 2020. "Du recrutement à la formation : le renouvellement des compétences au cœur de la politique des entreprises du numérique," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-03023479, HAL.
    16. François Deltour & Sébastien Le Gall & Virginie Lethiais, 2017. "Innovating not Only in Cities: Evidence from SMEs," Post-Print hal-01758281, HAL.
    17. Robert Huggins & Piers Thompson, 2015. "Entrepreneurship, innovation and regional growth: a network theory," Small Business Economics, Springer, vol. 45(1), pages 103-128, June.

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    More about this item

    Keywords

    Innovation; SMEs; Spatial Proximity; External Interaction;
    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
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • 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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