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

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  • Justin Doran
  • Declan Jordan
  • Eoin O’Leary

Abstract

This paper tests whether more frequent interaction at different spatial levels has a positive effect on the innovation performance of small- and medium-sized enterprises (SMEs) in the South-West and South-East of Ireland. Based on an original survey, it finds that more frequent interaction generally increases innovation likelihood, but at a diminishing rate, thus suggesting a trade-off between resources dedicated to transforming knowledge into new products and processes. Spatially distant interaction is found to be at least as valuable as proximate interaction, which questions the received wisdom that the best sources of knowledge are regional. Given the value of distant interaction, the results indicate that regional lock-in may be an obstacle to superior innovation performance of SMEs.

Suggested Citation

  • Justin Doran & Declan Jordan & Eoin O’Leary, 2012. "The effects of the frequency of spatially proximate and distant interaction on innovation by Irish SMEs," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 24(7-8), pages 705-727.
  • Handle: RePEc:taf:entreg:v:24:y:2012:i:7-8:p:705-727
    DOI: 10.1080/08985626.2012.710261
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    Citations

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    Cited by:

    1. 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.
    2. 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.
    3. repec:gam:jsusta:v:10:y:2018:i:3:p:767-:d:135752 is not listed on IDEAS
    4. 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.
    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. 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.
    7. François Deltour & Sébastien Le Gall & Virginie Lethiais, 2017. "Innovating not Only in Cities: Evidence from SMEs," Post-Print hal-01758281, HAL.
    8. Robert Huggins & Piers Thompson, 2015. "Entrepreneurship, innovation and regional growth: a network theory," Small Business Economics, Springer, vol. 45(1), pages 103-128, June.

    More about this item

    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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