IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v10y2019i3d10.1007_s13132-017-0508-7.html
   My bibliography  Save this article

Networking, Innovation, and Firms’ Performance: Portugal as Illustration

Author

Listed:
  • Sérgio Nunes

    (Polytechnic Institute of Tomar)

  • Raul Lopes

    (Instituto Universitário de Lisboa (ISCTE-IUL), DINÂMIA CET-IUL)

  • Nerys Fuller-Love

    (Aberystwyth University)

Abstract

The innovation process takes place not only as a result of research and development but also because of specific combinations of knowledge that firms obtain by accessing both internal and external environments. In this paper, the relationship between networking intensity and the innovation process is investigated in order to analyze the effect of these networks on firm performance. The results show that firms that are engaged more intensively in knowledge networks increase the likelihood of obtaining higher levels of innovation, which can lead to better economic performance. Furthermore, informal mechanisms of interaction have proved to be a fundamental dimension of the innovation process, especially in conjunction with formal networks. These conclusions have strong implications for government innovation policies designed to improve firms’ performance and that of the local economy.

Suggested Citation

  • Sérgio Nunes & Raul Lopes & Nerys Fuller-Love, 2019. "Networking, Innovation, and Firms’ Performance: Portugal as Illustration," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(3), pages 899-920, September.
    • Handle: RePEc:spr:jknowl:v:10:y:2019:i:3:d:10.1007_s13132-017-0508-7
    DOI: 10.1007/s13132-017-0508-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-017-0508-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13132-017-0508-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Elias Carayannis & David Campbell, 2011. "Open Innovation Diplomacy and a 21st Century Fractal Research, Education and Innovation (FREIE) Ecosystem: Building on the Quadruple and Quintuple Helix Innovation Concepts and the “Mode 3” Knowledge ," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 2(3), pages 327-372, September.
    2. Tödtling, Franz & Lehner, Patrick & Trippl, Michaela, 2004. "Knowledge intensive industries, networks, and collective learning," SRE-Discussion Papers 2004/02, WU Vienna University of Economics and Business.
    3. Oerlemans, L.A.G. & Meeus, M.T.H. & Boekema, F.W.M., 2001. "Firm clustering and innovation," Other publications TiSEM c4398688-1710-449a-83e7-e, Tilburg University, School of Economics and Management.
    4. Jensen, Morten Berg & Johnson, Bjorn & Lorenz, Edward & Lundvall, Bengt Ake, 2007. "Forms of knowledge and modes of innovation," Research Policy, Elsevier, vol. 36(5), pages 680-693, June.
    5. Manfred M. Fischer, 2006. "Innovation, Networks, and Knowledge Spillovers," Springer Books, Springer, number 978-3-540-35981-4, December.
    6. Ronald H. Coase, 2008. "The Institutional Structure of Production," Springer Books, in: Claude Ménard & Mary M. Shirley (ed.), Handbook of New Institutional Economics, chapter 2, pages 31-39, Springer.
    7. Jan Lambooy, 2005. "Innovation and knowledge: Theory and regional policy," European Planning Studies, Taylor & Francis Journals, vol. 13(8), pages 1137-1152, April.
    8. Roman Martin, 2013. "Differentiated Knowledge Bases and the Nature of Innovation Networks," European Planning Studies, Taylor & Francis Journals, vol. 21(9), pages 1418-1436, September.
    9. Jeroen de Jong & Ron Kemp & Mickey Folkeringa & Wubben, 2003. "Innovation and firm performance," Scales Research Reports H200207, EIM Business and Policy Research.
    10. Antonelli, Cristiano, 2005. "Models of knowledge and systems of governance," Journal of Institutional Economics, Cambridge University Press, vol. 1(1), pages 51-73, June.
    11. Piergiuseppe Morone & Giuseppina Testa, 2008. "Firms Growth, Size And Innovation An Investigation Into The Italian Manufacturing Sector," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(4), pages 311-329.
    12. Michael Storper & Anthony J. Venables, 2004. "Buzz: face-to-face contact and the urban economy," Journal of Economic Geography, Oxford University Press, vol. 4(4), pages 351-370, August.
    13. Bengt-Åke Lundvall, 2007. "National Innovation Systems—Analytical Concept and Development Tool," Industry and Innovation, Taylor & Francis Journals, vol. 14(1), pages 95-119.
    14. Karlsson, Charlie & Olsson, Ola, 1998. "Product Innovation in Small and Large Enterprises," Small Business Economics, Springer, vol. 10(1), pages 31-46, February.
    15. Natalja Apanasovich & Henar Alcalde-Heras & Mario Davide Parrilli, 2017. "A new approach to business innovation modes: the ‘Research, Technology and Human Resource Management (RTH) model’ in the ICT sector in Belarus," European Planning Studies, Taylor & Francis Journals, vol. 25(11), pages 1976-2000, November.
    16. Aalbers, Rick & Koppius, Otto & Dolfsma, Wilfred, 2006. "On and Off the Beaten Path: Transferring Knowledge through Formal and Informal Networks," Papers in Innovation Studies 2006/8, Lund University, CIRCLE - Centre for Innovation Research.
    17. Koellinger, Ph.D., 2008. "The Relationship between Technology, Innovation, and Firm Performance: Empirical Evidence on E-Business in Europe," ERIM Report Series Research in Management ERS-2008-031-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    18. Hall, B.H., 2011. "Innovation and productivity," MERIT Working Papers 2011-028, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    19. Michael Fritsch & Martina Kauffeld-Monz, 2010. "The impact of network structure on knowledge transfer: an application of social network analysis in the context of regional innovation networks," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 44(1), pages 21-38, February.
    20. Fitjar, Rune Dahl & Rodríguez-Pose, Andrés, 2013. "Firm collaboration and modes of innovation in Norway," Research Policy, Elsevier, vol. 42(1), pages 128-138.
    21. Giulio Cainelli & Rinaldo Evangelista & Maria Savona, 2006. "Innovation and economic performance in services: a firm-level analysis," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 30(3), pages 435-458, May.
    22. Jose-Luis Hervas-Oliver & Jose Albors-Garrigos, 2009. "The role of the firm's internal and relational capabilities in clusters: when distance and embeddedness are not enough to explain innovation," Journal of Economic Geography, Oxford University Press, vol. 9(2), pages 263-283, March.
    23. Parrilli, Mario Davide & Alcalde Heras, Henar, 2016. "STI and DUI innovation modes: Scientific-technological and context-specific nuances," Research Policy, Elsevier, vol. 45(4), pages 747-756.
    24. Freeman, C., 1991. "Networks of innovators: A synthesis of research issues," Research Policy, Elsevier, vol. 20(5), pages 499-514, October.
    25. Xavier Gellynck & Bert Vermeire, 2009. "The Contribution of Regional Networks to Innovation and Challenges for Regional Policy," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(3), pages 719-737, September.
    26. Bengt Johannisson & Marcela Ramírez-Pasillas & Gösta Karlsson, 2002. "The institutional embeddedness of local inter-firm networks: a leverage for business creation," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 14(4), pages 297-315, October.
    27. Charlie Karlsson & Börje Johansson & Roger R. Stough (ed.), 2005. "Industrial Clusters and Inter-Firm Networks," Books, Edward Elgar Publishing, number 3577.
    28. Sérgio Nunes & Raul Lopes, 2015. "Firm Performance, Innovation Modes and Territorial Embeddedness," European Planning Studies, Taylor & Francis Journals, vol. 23(9), pages 1796-1826, September.
    29. Robin Cowan & Nicolas Jonard & Jean-Benoit Zimmermann, 2007. "Bilateral Collaboration and the Emergence of Innovation Networks," Management Science, INFORMS, vol. 53(7), pages 1051-1067, July.
    30. Fariborz Damanpour & Richard M. Walker & Claudia N. Avellaneda, 2009. "Combinative Effects of Innovation Types and Organizational Performance: A Longitudinal Study of Service Organizations," Journal of Management Studies, Wiley Blackwell, vol. 46(4), pages 650-675, June.
    31. Hagedoorn, John, 1995. "Strategic technology partnering during the 1980s: Trends, networks and corporate patterns in non-core technologies," Research Policy, Elsevier, vol. 24(2), pages 207-231, March.
    32. Halvor Holtskog, 2017. "Forms of Innovation—Insights from Product Development," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(1), pages 63-76, March.
    33. Leonid Gokhberg & Tatiana Kuznetsova & Vitaly Roud, 2012. "Exploring innovation modes of Russian companies: what does the diversity of actors mean for policymaking?," HSE Working papers WP BRP 01/STI/2012, National Research University Higher School of Economics.
    34. Alessia Sammarra & Lucio Biggiero, 2008. "Heterogeneity and Specificity of Inter‐Firm Knowledge Flows in Innovation Networks," Journal of Management Studies, Wiley Blackwell, vol. 45(4), pages 800-829, June.
    35. Riccardo Cappellin & Rüdiger Wink, 2009. "International Knowledge and Innovation Networks," Books, Edward Elgar Publishing, number 13503.
    36. Mark Rogers, 2004. "Networks, Firm Size and Innovation," Small Business Economics, Springer, vol. 22(2), pages 141-153, March.
    37. Zoltan Acs & David Audretsch & Pontus Braunerhjelm & Bo Carlsson, 2012. "Growth and entrepreneurship," Small Business Economics, Springer, vol. 39(2), pages 289-300, September.
    38. Elena Cefis & Matteo Ciccarelli, 2005. "Profit differentials and innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(1-2), pages 43-61.
    39. Alfred Kleinknecht & Pierre Mohnen (ed.), 2002. "Innovation and Firm Performance," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-59588-0, October.
    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. Mueller, Christoph E., 2023. "Explaining the stage of product in pre-seed academic startup ventures: An empirical analysis using monitoring data from a German startup support program," Journal of Business Venturing Insights, Elsevier, vol. 19(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alhusen, Harm & Bennat, Tatjana & Bizer, Kilian & Cantner, Uwe & Horstmann, Elaine & Kalthaus, Martin & Proeger, Till & Sternberg, Rolf & Töpfer, Stefan, 2021. "A New Measurement Conception for the ‘Doing-Using-Interacting’ Mode of Innovation," Research Policy, Elsevier, vol. 50(4).
    2. Tatjana Bennat, 2022. "High Innovativeness of SMEs and the Configuration of Learning-by-Doing, Learning-by-Using, Learning-by-Interacting, and Learning-by-Science: a Regional Comparison Applying Fuzzy Qualitative Comparativ," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(2), pages 1666-1691, June.
    3. Hervas-Oliver, Jose-Luis & Parrilli, Mario Davide & Sempere-Ripoll, Francisca, 2021. "SME modes of innovation in European catching-up countries: The impact of STI and DUI drivers on technological innovation," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    4. Parrilli, Mario Davide & Balavac, Merima & Radicic, Dragana, 2020. "Business innovation modes and their impact on innovation outputs: Regional variations and the nature of innovation across EU regions," Research Policy, Elsevier, vol. 49(8).
    5. David Doloreux & Richard Shearmur & Igone Porto‐Gomez & Jon Mikel Zabala‐Iturriagagoitia, 2020. "DUI and STI innovation modes in the Canadian wine industry: The geography of interaction modes," Growth and Change, Wiley Blackwell, vol. 51(3), pages 890-909, September.
    6. Robert Huggins & Piers Thompson, 2015. "Entrepreneurship, innovation and regional growth: a network theory," Small Business Economics, Springer, vol. 45(1), pages 103-128, June.
    7. Alhusen, Harm & Bennat, Tatjana & Bizer, Kilian & Cantner, Uwe & Horstmann, Elaine & Kalthaus, Martin & Proeger, Till & Sternberg, Rolf G. & Töpfer, Stefan, 2019. "Measuring the "doing-using-interacting mode" of innovation in SMEs - A qualitative approach," ifh Working Papers 23/2019, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    8. Alhusen, Harm, 2020. "Experience-based know-how, learning and innovation in German SMEs: An explorative analysis of the role of know-how in different modes of innovation," ifh Working Papers 27/2020, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    9. Petrik Runst & Jörg Thomä, 2022. "Does personality matter? Small business owners and modes of innovation," Small Business Economics, Springer, vol. 58(4), pages 2235-2260, April.
    10. Alhusen, Harm & Bennat, Tatjana, 2019. "Innovation modes in SMEs: Mechanisms integrating STI-processes into DUI-mode learning and the role of regional innovation policy," ifh Working Papers 21/2019, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    11. Calvo, Nuria & Fernández-López, Sara & Rodríguez-Gulías, María Jesús & Rodeiro-Pazos, David, 2022. "The effect of population size and technological collaboration on firms' innovation," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    12. Doloreux, David & Shearmur, Richard, 2023. "Does location matter? STI and DUI innovation modes in different geographic settings," Technovation, Elsevier, vol. 119(C).
    13. Haus-Reve, Silje & Fitjar, Rune Dahl & Rodríguez-Pose, Andrés, 2019. "Does combining different types of collaboration always benefit firms? Collaboration, complementarity and product innovation in Norway," Research Policy, Elsevier, vol. 48(6), pages 1476-1486.
    14. Rodríguez-Pose, Andrés & Haus-Reve, Silje & Fitjar, Rune, 2019. "Does combining different types of collaboration always benefit firms? Collaboration, complementarity and product innovation in," CEPR Discussion Papers 13622, C.E.P.R. Discussion Papers.
    15. Øivind Strand & Michelle Wiig & Tobias Torheim & Hans Solli-Sæther & Erik Nesset, 2017. "Technological Innovation Capability And Interaction Effect In A Scandinavian Industry Cluster," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(05), pages 1-22, June.
    16. Liang, Liang & Alam, Ashraful & Sorwar, Ghulam & Yazdifar, Hassan & Eskandari, Rasol, 2021. "The combined network effect of sparse and interlocked connections in SMEs’ innovation," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    17. Parrilli, M. Davide & Balavac-Orlić, Merima & Radicic, Dragana, 2023. "Environmental innovation across SMEs in Europe," Technovation, Elsevier, vol. 119(C).
    18. Thomä, Jörg & Zimmermann, Volker, 2019. "Non-R&D, interactive learning and economic performance: Revisiting innovation in small and medium enterprises," ifh Working Papers 17/2019, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    19. Antonio Carlos Campos & Luís Lopes & Carlos Carreira, 2024. "Spatial Autocorrelation of Exports and R&D Expenditures in Portugal," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 8632-8653, June.
    20. Marte C.W. Solheim & Ron Boschma & Sverre Herstad, 2018. "Related variety, unrelated variety and the novelty content of firm innovation in urban and non-urban locations," Papers in Evolutionary Economic Geography (PEEG) 1836, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2018.

    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:spr:jknowl:v:10:y:2019:i:3:d:10.1007_s13132-017-0508-7. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.