IDEAS home Printed from https://ideas.repec.org/a/wsi/ijimxx/v23y2019i05ns1363919619500403.html
   My bibliography  Save this article

What Drives Enterprise Product Innovation? Assessing How Regional, National, And International Inter-Firm Collaboration Complement Or Substitute For R&D Investments

Author

Listed:
  • JARLE AARSTAD

    () (Western Norway University of Applied Sciences, Bergen, Norway)

  • OLAV ANDREAS KVITASTEIN

    (Western Norway University of Applied Sciences, Bergen, Norway)

  • STIG-ERIK JAKOBSEN

    (Western Norway University of Applied Sciences, Bergen, Norway)

Abstract

We study whether regional, national, and international inter-firm collaboration complement or substitute for enterprise R&D investments as drivers of product innovation. Analysing a large-scale dataset of 6,584 Norwegian enterprises, we find that for enterprises without R&D investments, regional collaboration, in particular, has a positive innovation effect. Unsurprisingly, R&D investments also have a positive innovation effect, but more interestingly; for enterprises with R&D investments, international collaboration has an additive effect, whereas regional and national collaboration have no effect. The findings imply that regional collaboration, in particular, substitutes for enterprise R&D investments as a driver of product innovation, whereas international collaboration has an additive and complementary effect. We moreover find that in particular enterprises with R&D investments, but without international collaboration, are more innovative the smaller they are. Conversely, enterprises with R&D investments have a stronger innovation effect from international collaboration the larger they are.

Suggested Citation

  • Jarle Aarstad & Olav Andreas Kvitastein & Stig-Erik Jakobsen, 2019. "What Drives Enterprise Product Innovation? Assessing How Regional, National, And International Inter-Firm Collaboration Complement Or Substitute For R&D Investments," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(05), pages 1-25, June.
  • Handle: RePEc:wsi:ijimxx:v:23:y:2019:i:05:n:s1363919619500403
    DOI: 10.1142/S1363919619500403
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S1363919619500403
    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. 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.
    2. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-1054, July.
    3. Aarstad, Jarle & Kvitastein, Olav A. & Jakobsen, Stig-Erik, 2016. "Related and unrelated variety as regional drivers of enterprise productivity and innovation: A multilevel study," Research Policy, Elsevier, vol. 45(4), pages 844-856.
    4. Olivier Bertrand & Michael J. Mol, 2013. "The antecedents and innovation effects of domestic and offshore R&D outsourcing: The contingent impact of cognitive distance and absorptive capacity," Strategic Management Journal, Wiley Blackwell, vol. 34(6), pages 751-760, June.
    5. Joel A. C. Baum & Tony Calabrese & Brian S. Silverman, 2000. "Don't go it alone: alliance network composition and startups' performance in Canadian biotechnology," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 267-294, March.
    6. Weijan Shan & Gordon Walker & Bruce Kogut, 1994. "Interfirm cooperation and startup innovation in the biotechnology industry," Strategic Management Journal, Wiley Blackwell, vol. 15(5), pages 387-394, June.
    7. repec:ulb:ulbeco:2013/127941 is not listed on IDEAS
    8. Keith Finlay & Leandro M. Magnusson, 2009. "Implementing weak-instrument robust tests for a general class of instrumental-variables models," Stata Journal, StataCorp LP, vol. 9(3), pages 398-421, September.
    9. Michael R. Glass & David J. Hayward, 2001. "Innovation and Interdependencies in the New Zealand Custom Boat‐building Industry," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 25(3), pages 571-592, September.
    10. Newey, Whitney K., 1987. "Efficient estimation of limited dependent variable models with endogenous explanatory variables," Journal of Econometrics, Elsevier, vol. 36(3), pages 231-250, November.
    11. Brown, James R. & Martinsson, Gustav & Petersen, Bruce C., 2012. "Do financing constraints matter for R&D?," European Economic Review, Elsevier, vol. 56(8), pages 1512-1529.
    12. Antonio Revilla & Zulima Fern�ndez, 2013. "Environmental Dynamism, Firm Size and the Economic Productivity of R&D," Industry and Innovation, Taylor & Francis Journals, vol. 20(6), pages 503-522, August.
    13. J. Knoben, 2009. "Localized inter-organizational linkages, agglomeration effects, and the innovative performance of firms," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(3), pages 757-779, September.
    14. Edward C. Norton & Hua Wang & Chunrong Ai, 2004. "Computing interaction effects and standard errors in logit and probit models," Stata Journal, StataCorp LP, vol. 4(2), pages 154-167, June.
    15. Arundel, Anthony, 2001. "The relative effectiveness of patents and secrecy for appropriation," Research Policy, Elsevier, vol. 30(4), pages 611-624, April.
    16. Maria Di Guardo & Kathryn Harrigan, 2012. "Mapping research on strategic alliances and innovation: a co-citation analysis," The Journal of Technology Transfer, Springer, vol. 37(6), pages 789-811, December.
    17. Tanya Chavdarova, 2014. "Risky Businesses? Young People in Informal Self-Employment in Sofia," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 38(6), pages 2060-2077, November.
    18. Matthew A. Zook, 2004. "The knowledge brokers: venture capitalists, tacit knowledge and regional development," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 28(3), pages 621-641, September.
    19. Arne Isaksen & James Karlsen, 2012. "What Is Regional in Regional Clusters? The Case of the Globally Oriented Oil and Gas Cluster in Agder, Norway," Industry and Innovation, Taylor & Francis Journals, vol. 19(3), pages 249-263, April.
    20. Andrea Monika Herrmann & Janne Louise Taks & Ellen Moors, 2012. "Beyond Regional Clusters: On the Importance of Geographical Proximity for R&D Collaborations in a Global Economy—the Case of the Flemish Biotech Sector," Industry and Innovation, Taylor & Francis Journals, vol. 19(6), pages 499-516, August.
    21. A. Colin Cameron & Pravin K. Trivedi, 2010. "Microeconometrics Using Stata, Revised Edition," Stata Press books, StataCorp LP, number musr, April.
    22. Cohen, Wesley M & Klepper, Steven, 1996. "Firm Size and the Nature of Innovation within Industries: The Case of Process and Product R&D," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 232-243, May.
    23. Asheim, Bjorn T. & Coenen, Lars, 2005. "Knowledge bases and regional innovation systems: Comparing Nordic clusters," Research Policy, Elsevier, vol. 34(8), pages 1173-1190, October.
    24. Luciana Lazzeretti & Lisa De Propris & Dimitri Storai, 2004. "Imoannatori and business angels: two models of informal capital provision," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 28(4), pages 839-854, December.
    25. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    26. Donald W. K. Andrews, 1999. "Estimation When a Parameter Is on a Boundary," Econometrica, Econometric Society, vol. 67(6), pages 1341-1384, November.
    27. Pelin Demirel & Mariana Mazzucato, 2012. "Innovation and Firm Growth: Is R&D Worth It?," Industry and Innovation, Taylor & Francis Journals, vol. 19(1), pages 45-62, January.
    28. Marc Hallin & Guy Melard, 1988. "Rank-based tests for randomness against first-order serial dependence," ULB Institutional Repository 2013/2015, ULB -- Universite Libre de Bruxelles.
    29. Toby E. Stuart, 2000. "Interorganizational alliances and the performance of firms: a study of growth and innovation rates in a high‐technology industry," Strategic Management Journal, Wiley Blackwell, vol. 21(8), pages 791-811, August.
    30. Manuel Becerra & Randi Lunnan & Lars Huemer, 2008. "Trustworthiness, Risk, and the Transfer of Tacit and Explicit Knowledge Between Alliance Partners," Journal of Management Studies, Wiley Blackwell, vol. 45(4), pages 691-713, June.
    31. Gloria Parra-Requena & María J. Ruiz-Ortega & Pedro M. Garcia-Villaverde, 2013. "Social Capital and Effective Innovation in Industrial Districts: Dual Effect of Absorptive Capacity," Industry and Innovation, Taylor & Francis Journals, vol. 20(2), pages 157-179, February.
    32. Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
    33. Mita Bhattacharya & Harry Bloch, 2004. "Determinants of Innovation," Small Business Economics, Springer, vol. 22(2), pages 155-162, March.
    34. Glenn Hoetker, 2007. "The use of logit and probit models in strategic management research: Critical issues," Strategic Management Journal, Wiley Blackwell, vol. 28(4), pages 331-343, 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. Jarle Aarstad & Stig-Erik Jakobsen, 2020. "Norwegian Firms’ Green and New Industry Strategies: A Dual Challenge," Sustainability, MDPI, Open Access Journal, vol. 12(1), pages 1-14, January.

    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. Sverre J. Herstad, 2018. "Beyond ‘related variety’: how inflows of skills shape innovativeness in different industries," European Planning Studies, Taylor & Francis Journals, vol. 26(2), pages 396-420, February.
    2. Trippl , Michaela & Grillitsch , Markus & Isaksen , Arne & Sinozic , Tanja, 2015. "Understanding Cluster Evolution," Papers in Innovation Studies 2015/46, Lund University, CIRCLE - Center for Innovation Research.
    3. Aarstad, Jarle & Kvitastein, Olav A. & Jakobsen, Stig-Erik, 2016. "Related and unrelated variety as regional drivers of enterprise productivity and innovation: A multilevel study," Research Policy, Elsevier, vol. 45(4), pages 844-856.
    4. Yli-Renko, Helena & Denoo, Lien & Janakiraman, Ramkumar, 2020. "A knowledge-based view of managing dependence on a key customer: Survival and growth outcomes for young firms," Journal of Business Venturing, Elsevier, vol. 35(6).
    5. Hyeon Chang Kim & Woojin Yoon, 2019. "Study On Types Of Technology Cooperation Partner And Innovation Performance: Focusing On Incremental And Radical Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(01), pages 1-25, January.
    6. Pinar Ozcan & Douglas Hannah, 2020. "Social Origins of Great Strategies Advertising Suppliers to Realize Disruptive Social Media Technology," Strategy Science, INFORMS, vol. 5(3), pages 193-217, September.
    7. 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).
    8. Marzucchi, Alberto & Montresor, Sandro, 2017. "Forms of knowledge and eco-innovation modes: Evidence from Spanish manufacturing firms," Ecological Economics, Elsevier, vol. 131(C), pages 208-221.
    9. Herstad, Sverre J. & Aslesen, Heidi Wiig & Ebersberger, Bernd, 2014. "On industrial knowledge bases, commercial opportunities and global innovation network linkages," Research Policy, Elsevier, vol. 43(3), pages 495-504.
    10. Natalja Apanasovich, 2016. "Modes of Innovation: A Grounded Meta-Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 7(3), pages 720-737, September.
    11. Rakas, Marija & Hain, Daniel S., 2019. "The state of innovation system research: What happens beneath the surface?," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    12. Antonio Messeni Petruzzelli & Gianluca Murgia, 2020. "University–Industry collaborations and international knowledge spillovers: a joint-patent investigation," The Journal of Technology Transfer, Springer, vol. 45(4), pages 958-983, August.
    13. Bellandi, Marco & Chaminade, Cristina & Plechero, Monica, 2018. "Transformation paths and the multi-scalarity of knowledge bases under Industry 4.0 challenges," Papers in Innovation Studies 2018/14, Lund University, CIRCLE - Center for Innovation Research.
    14. Jarle Aarstad & Stig-Erik Jakobsen, 2020. "Norwegian Firms’ Green and New Industry Strategies: A Dual Challenge," Sustainability, MDPI, Open Access Journal, vol. 12(1), pages 1-14, January.
    15. Franz Tödtling & Markus Grillitsch, 2014. "Types of Innovation, Competencies of Firms, and External Knowledge Sourcing—Findings from Selected Sectors and Regions of Europe," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 5(2), pages 330-356, June.
    16. Binz, Christian & Truffer, Bernhard, 2017. "Global Innovation Systems—A conceptual framework for innovation dynamics in transnational contexts," Research Policy, Elsevier, vol. 46(7), pages 1284-1298.
    17. Takashi Iino & Hiroyasu Inoue & Yukiko U. Saito & Yasuyuki Todo, 2021. "How does the global network of research collaboration affect the quality of innovation?," The Japanese Economic Review, Springer, vol. 72(1), pages 5-48, January.
    18. Solheim, Marte C.W. & Boschma, Ron & Herstad, Sverre J., 2020. "Collected worker experiences and the novelty content of innovation," Research Policy, Elsevier, vol. 49(1).
    19. Friedrich Dornbusch & Thomas Brenner, 2013. "Universities as local knowledge hubs under different technology regimes – New evidence from academic patenting," Working Papers on Innovation and Space 2013-10, Philipps University Marburg, Department of Geography.
    20. Lin, Han & Zeng, Saixing & Liu, Haijian & Li, Chao, 2020. "Bridging the gaps or fecklessness? A moderated mediating examination of intermediaries’ effects on corporate innovation," Technovation, Elsevier, vol. 94.

    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:wsi:ijimxx:v:23:y:2019:i:05:n:s1363919619500403. 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: (Tai Tone Lim). General contact details of provider: http://www.worldscinet.com/ijim/ijim.shtml .

    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.