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The Institutional Sources of Innovation in Korean and UK Online Gaming Firms

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  • Denise Tsang

    ()
    (School of Management, University of Reading)

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    Abstract

    This paper examines the institutional sources of innovation, with reference to the role of institutions in generating creativity within knowledge-intensive entertainment industry. Despite growing importance of innovation in the knowledge industry, including interactive games, the ‘informal’ source of innovation has attracted relatively little attention. We have attempted to fill this gap with a comparative case study of indigenous UK and Korean online gaming firms. By closely looking at the idea exploration, generation and selection process where creativity plays a major role, we intend to find out why and how values and norms contribute to firm innovation. This study shows that both Korean and UK’s firm value, regardless of their different socio-economic contexts, plays an important role in generating innovation. An additional point suggested in this paper is that the Korean game development firms are likely to take advantage of governmental policy support, in order to overcome inadequate institutional settings, in conjunction with the initial conditions of online gaming development.

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    Bibliographic Info

    Paper provided by Henley Business School, Reading University in its series Economics & Management Discussion Papers with number em-dp2009-08.

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    Length: 34 pages
    Date of creation: 04 May 2010
    Date of revision:
    Handle: RePEc:rdg:emxxdp:em-dp2009-08

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    Related research

    Keywords: Online gaming industry; Institution; Innovation; Firm culture; Public policy;

    This paper has been announced in the following NEP Reports:

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    1. Zoltan Acs & Pontus Braunerhjelm & David Audretsch & Bo Carlsson, 2009. "The knowledge spillover theory of entrepreneurship," Small Business Economics, Springer, vol. 32(1), pages 15-30, January.
    2. Anneli Kaasa & Maaja Vadi, 2008. "How Does Culture Contribute To Innovation? Evidence From European Countries," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 63, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    3. Rysman, Marc & Simcoe, Tim, 2009. "Patents and the Performance of Voluntary Standard Setting Organizations," PIE/CIS Discussion Paper 418, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    4. Iammarino, Simona & McCann, Philip, 2006. "The structure and evolution of industrial clusters: Transactions, technology and knowledge spillovers," Research Policy, Elsevier, vol. 35(7), pages 1018-1036, September.
    5. Oecd, 2001. "The Development of Broadband Access in the OECD Countries," OECD Digital Economy Papers 56, OECD Publishing.
    6. Furman, Jeffrey L. & Porter, Michael E. & Stern, Scott, 2002. "The determinants of national innovative capacity," Research Policy, Elsevier, vol. 31(6), pages 899-933, August.
    7. Hall, Peter A. & Soskice, David (ed.), 2001. "Varieties of Capitalism: The Institutional Foundations of Comparative Advantage," OUP Catalogue, Oxford University Press, number 9780199247752.
    8. Shane, Scott, 1993. "Cultural influences on national rates of innovation," Journal of Business Venturing, Elsevier, vol. 8(1), pages 59-73, January.
    9. Chang, Ha-Joon, 1993. "The Political Economy of Industrial Policy in Korea," Cambridge Journal of Economics, Oxford University Press, vol. 17(2), pages 131-57, June.
    10. Laranja, Manuel & Uyarra, Elvira & Flanagan, Kieron, 2008. "Policies for science, technology and innovation: Translating rationales into regional policies in a multi-level setting," Research Policy, Elsevier, vol. 37(5), pages 823-835, June.
    11. Chris Freeman & Luc Soete, 1997. "The Economics of Industrial Innovation, 3rd Edition," MIT Press Books, The MIT Press, edition 3, volume 1, number 0262061953, January.
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