IDEAS home Printed from https://ideas.repec.org/a/bla/growch/v39y2008i2p193-224.html
   My bibliography  Save this article

Innovation Ideas and Regional Characteristics: Product Innovations and Export Entrepreneurship by Firms in Swedish Regions

Author

Listed:
  • MARTIN ANDERSSON
  • BÖRJE JOHANSSON

Abstract

This paper focuses upon the ways in which characteristics of regions in regards to knowledge sources, communication opportunities, and absorptive capacity influence the development of innovation ideas among existing and potential entrepreneurs. We formulate a model where entrepreneurs or innovating firms introduce new products in a quasi-temporal setting. Market conditions are characterised by monopolistic competition between varieties belonging to the same product group, in which there is entry and exit of varieties. A stochastic process is assumed to generate new innovation ideas as time goes by, and a firm (entrepreneur) who receives such an idea has to transform the idea to an innovation, which in the model is specified as a particular variety combined with a specific destination market. The theoretical model is used as a reference when formulating two regression models, with which we estimate how a set of regional characteristics are associated with the likelihood of innovation ideas across Swedish local labour market regions. In one model, we examine the emergence of new export varieties, and in the second model, we investigate the appearance of new export firms. Results are consistent with the assumption that knowledge and information flows have a positive influence on the frequency of arrival of innovation ideas to firms. Copyright (c) 2008 Blackwell Publishing.

Suggested Citation

  • Martin Andersson & Börje Johansson, 2008. "Innovation Ideas and Regional Characteristics: Product Innovations and Export Entrepreneurship by Firms in Swedish Regions," Growth and Change, Wiley Blackwell, vol. 39(2), pages 193-224.
  • Handle: RePEc:bla:growch:v:39:y:2008:i:2:p:193-224
    as

    Download full text from publisher

    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-2257.2008.00417.x
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Christian Broda & David E. Weinstein, 2006. "Globalization and the Gains From Variety," The Quarterly Journal of Economics, Oxford University Press, vol. 121(2), pages 541-585.
    2. Brambilla, Irene, 2009. "Multinationals, technology, and the introduction of varieties of goods," Journal of International Economics, Elsevier, vol. 79(1), pages 89-101, September.
    3. Maryann Feldman, 1999. "The New Economics Of Innovation, Spillovers And Agglomeration: Areview Of Empirical Studies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 8(1-2), pages 5-25.
    4. David B. Audretsch, 2003. "Innovation And Spatial Externalities," International Regional Science Review, , vol. 26(2), pages 167-174, April.
    5. Partha Dasgupta & Joseph Stiglitz, 1980. "Uncertainty, Industrial Structure, and the Speed of R&D," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 1-28, Spring.
    6. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
    7. Feenstra, Robert C, 1994. "New Product Varieties and the Measurement of International Prices," American Economic Review, American Economic Association, vol. 84(1), pages 157-177, March.
    8. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 577-598.
    9. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
    10. Dasgupta, Partha & Stiglitz, Joseph, 1980. "Industrial Structure and the Nature of Innovative Activity," Economic Journal, Royal Economic Society, vol. 90(358), pages 266-293, June.
    11. repec:spr:adspsc:978-3-540-34488-9 is not listed on IDEAS
    12. Edward L. Glaeser & Albert Saiz, 2003. "The rise of the skilled city," Working Papers 04-2, Federal Reserve Bank of Philadelphia.
    13. Behrens, Kristian & Gaigne, Carl & Ottaviano, Gianmarco I.P. & Thisse, Jacques-Francois, 2006. "How density economies in international transportation link the internal geography of trading partners," Journal of Urban Economics, Elsevier, vol. 60(2), pages 248-263, September.
    14. David Hummels, 2007. "Transportation Costs and International Trade in the Second Era of Globalization," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 131-154, Summer.
    15. Krugman, Paul, 1979. "A Model of Innovation, Technology Transfer, and the World Distribution of Income," Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 253-266, April.
    16. David Hummels & Volodymyr Lugovskyy, 2005. "Trade in Ideal Varieties: Theory and Evidence," NBER Working Papers 11828, National Bureau of Economic Research, Inc.
    17. Börje Johansson & Johan Klaesson & Michael Olsson, 2002. "Time distances and labor market integration," Papers in Regional Science, Springer;Regional Science Association International, vol. 81(3), pages 305-327.
    18. Eric von Hippel, 1994. ""Sticky Information" and the Locus of Problem Solving: Implications for Innovation," Management Science, INFORMS, vol. 40(4), pages 429-439, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andersson, Martin & Johansson, Börje & Månsson, Kristofer, 2009. "Dynamics of Entry and Exit of Product Varieties – what evolution dynamics can account for the empirical regularities?," Working Paper Series in Economics and Institutions of Innovation 204, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    2. Martin Andersson & Hans Lööf, 2011. "Agglomeration and productivity: evidence from firm-level data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(3), pages 601-620, June.
    3. Martin Andersson & Lina Bjerke & Charlie Karlsson, 2014. "Imports and regional development," Chapters,in: Knowledge, Innovation and Space, chapter 4, pages 80-102 Edward Elgar Publishing.
    4. Börje Johansson & Johan Klaesson, 2011. "Creative Milieus in the Stockholm Region," Chapters,in: Handbook of Creative Cities, chapter 23 Edward Elgar Publishing.
    5. Diego Martínez-López & Manuel Palazuelos-Martínez, 2014. "Breaking with the past in smart specialisation: A new model of selection of business stakeholders within the entrepreneurial process of discovery," Working Papers. Collection B: Regional and sectoral economics 1401, Universidade de Vigo, GEN - Governance and Economics research Network.
    6. Sara Johansson, 2014. "The influence of knowledge on firms’ export decisions," Chapters,in: Knowledge, Innovation and Space, chapter 5, pages 103-138 Edward Elgar Publishing.
    7. Navarro-García, Antonio, 2016. "Drivers of export entrepreneurship," International Business Review, Elsevier, vol. 25(1), pages 244-254.
    8. repec:ris:invreg:0358 is not listed on IDEAS
    9. Börje Johansson & Johan Klaesson, 2011. "Agglomeration dynamics of business services," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(2), pages 373-391, October.
    10. Johansson, Börje & Johansson, Sara & Wallin, Tina, 2013. "Internal and External Knowledge – Innovation of Export Varieties," Working Paper Series in Economics and Institutions of Innovation 297, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    11. Johan Larsson & Özge Öner, 2014. "Location and co-location in retail: a probabilistic approach using geo-coded data for metropolitan retail markets," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(2), pages 385-408, March.
    12. Johansson, Börje & Lööf, Hans, 2008. "The Impact of Firm’s R&D Strategy on Profit and Productivity," Working Paper Series in Economics and Institutions of Innovation 156, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    13. Martin Andersson & Hans Lööf, 2012. "Small business innovation: firm level evidence from Sweden," The Journal of Technology Transfer, Springer, vol. 37(5), pages 732-754, October.
    14. Reza Naghizadeh & Shaban Elahi & Manoochehr Manteghi & Sepehr Ghazinoory & Marina Ranga, 2015. "Through the magnifying glass: an analysis of regional innovation models based on co-word and meta-synthesis methods," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(6), pages 2481-2505, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:growch:v:39:y:2008:i:2:p:193-224. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0017-4815 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.