On the Nature and Geography of Innovation and Interactive Learning: A Case Study of the Biotechnology Industry in the Aachen Technology Region, Germany

So far, relatively little research has been done on sectoral differences of innovation processes. In order to learn more about these differences, we apply the knowledge base concept which helps us to characterize the nature of critical knowledge that is indispensable for innovation activities. Two knowledge bases are distinguished: the analytical (science based) and the synthetic (engineering based) knowledge base. This paper focuses on the emerging biotechnology industry in the Aachen Technology Region in Germany. It aims to identify the knowledge base which is crucial for the development of new products and processes. Additional questions are as follows: How intense are cross-sectoral knowledge transfers and labour mobility? In which way can we observe innovation-oriented systemic interactions within the region and to which extent are the biotechnology firms connected to extra-regional knowledge sources? In order to investigate these questions, we apply social network analyses and descriptive statistics. Our results show that the knowledge base that is crucial for innovation activities is primarily of analytical nature. Interactive learning of biotechnology firms within the region is clearly dominated by industry--university links, while the vertical dimension of co-operative innovation processes is rather shaped on national and global scales for most firms.