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How Internal and External Sources of Knowledge Contribute to Firms’ Innovation Performance

  • Anja Cotic Svetina

    (University of Ljubljana, Slovenia)

  • Igor Prodan

    (University of Ljubljana, Slovenia)

This paper investigates the extent to which different knowledge sources contribute to firms’ innovation performance. The empirical analysis estimates the relationships in the structural model of the influence of knowledge sources on innovative performance using data collected through personal interviews at 303 firms. The results reveal that internal sources have the most important influence on firms’ innovative performance and confirm that, in their innovation process, firms mostly rely on knowledge developed through in-house R&D efforts, continuous improvement, and internal education and training programs. The data show that in-house learning is not sufficient for generating innovation and that firms need to supplement internal knowledge with knowledge acquired outside the firm. They mainly need to secure links with firms and institutions in the global environment if they want to secure the inflow of new ideas and approaches that will eventually lead to innovations.

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Article provided by University of Primorska, Faculty of Management Koper in its journal Managing Global Transitions.

Volume (Year): 6 (2008)
Issue (Month): 3 ()
Pages: 277-299

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Handle: RePEc:mgt:youmgt:v:6:y:2008:i:3:p:277-299
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  1. Roberta Capello, 1999. "Spatial Transfer of Knowledge in High Technology Milieux: Learning Versus Collective Learning Processes," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 353-365.
  2. Franz Tödtling & Patrick Lehner & Michaela Trippl, 2004. "Knowledge intensive industries, networks, and collective learning," SRE-Disc sre-disc-2004_02, Institute for Multilevel Governance and Development, Department of Socioeconomics, Vienna University of Economics and Business.
  3. Harald Bathelt & Andersand Malmberg & Peter Maskell, 2002. "Clusters and Knowledge Local Buzz, Global Pipelines and the Process of Knowledge Creation," DRUID Working Papers 02-12, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
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  6. Roberta Capello & Alessandra Faggian, 2005. "Collective Learning and Relational Capital in Local Innovation Processes," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 75-87.
  7. Lundvall, Bengt-Ake & Johnson, Bjorn & Andersen, Esben Sloth & Dalum, Bent, 2002. "National systems of production, innovation and competence building," Research Policy, Elsevier, vol. 31(2), pages 213-231, February.
  8. Arne Isaksen & Bjørn T. Asheim, . "Location, agglomeration and innovation: Towards regional innovation systems in Norway?," STEP Report series 199613, The STEP Group, Studies in technology, innovation and economic policy.
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