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Do Local Knowledge Spillovers Matter for Development? An Empirical Study of Uruguay’s Software Cluster

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  • Effie Kesidou
  • Henny Romijn

Abstract

Summary In economically advanced countries, local knowledge spillovers (LKS) between agglomerated firms are seen as major drivers of regional innovation and growth. In contrast, innovation research focusing on developing countries has emphasized international linkages, and has largely neglected LKS. This paper assesses the importance of LKS for innovation of clustered firms in a developing-country setting. An econometric analysis with new survey data from software firms in Montevideo, Uruguay, shows that LKS have a significantly positive impact on firms' innovation performance through labor mobility, company spin-offs, and informal interactions among actors. LKS are also shown to be highly important relative to other sources of knowledge.
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  • Effie Kesidou & Henny Romijn, 2006. "Do Local Knowledge Spillovers Matter for Development? An Empirical Study of Uruguay’s Software Cluster," Working Papers 06-11, Eindhoven Center for Innovation Studies, revised Oct 2006.
  • Handle: RePEc:ein:tuecis:0611
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    Cited by:

    1. Theresia Gunawan & Jojo Jacob & Geert Duysters, 2016. "Network ties and entrepreneurial orientation: Innovative performance of SMEs in a developing country," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 575-599, June.
    2. Majdi Anwar Quttainah, 2015. "Upper Echelon Theory: Role of Community and Strategy," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 1(3), pages 35-44, August.
    3. Ewert P. J. Kleynhans & Sibulele Zwedala, 2012. "The Contribution of FDI, Technology and R&D to Spillovers in Industrial Development: A South African Firm-Level Investigation," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 10(4 (Winter), pages 341-359.
    4. Majdi Anwar QUTTAINAH, 2015. "Upper Echelon Theory: Role of Community and Strategy," Expert Journal of Business and Management, Sprint Investify, vol. 3(2), pages 171-181.
    5. Ciravegna, Luciano, 2011. "Technological learning in the Silicon Valleys of Latin America," MPRA Paper 36832, University Library of Munich, Germany.
    6. Manning, Stephan & Ricart, Joan E. & Rosatti Rique, Maria Soledad & Lewin, Arie Y., 2010. "From blind spots to hotspots: How knowledge services clusters develop and attract foreign investment," Journal of International Management, Elsevier, vol. 16(4), pages 369-382, December.
    7. Basant, Rakesh & Chandra, Pankaj & Upadhyayula, Rajesh, 2011. "Knowledge Flows and Capability Building in the Indian IT Sector: A Comparative Analysis of Cluster and Non-Cluster Locations," IIMA Working Papers WP2011-10-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
    8. Aiqi Wu & Cassandra C. Wang & Shengxiao Li, 2015. "Geographical knowledge search, internal R&D intensity and product innovation of clustering firms in Zhejiang, China," Papers in Regional Science, Wiley Blackwell, vol. 94(3), pages 553-572, August.
    9. Manning, Stephan, 2013. "New Silicon Valleys or a new species? Commoditization of knowledge work and the rise of knowledge services clusters," Research Policy, Elsevier, vol. 42(2), pages 379-390.
    10. Kesidou, Effie & Szirmai, Adam, 2008. "Local Knowledge Spillovers, Innovation and Economic Performance in Developing Countries: A discussion of alternative specifications," MERIT Working Papers 033, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    11. Maldonado, Mauricio & Noronha Vaz, Teresa, 2015. "Knowledge Spillovers Within The Algarve Tourism Region. Evidence To Identify A Regional Innovation System," Spatial and Organizational Dynamics Discussion Papers 2015-4, CIEO-Research Centre for Spatial and Organizational Dynamics, University of Algarve.

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