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Internal and External Knowledge – Innovation of Export Varieties

Author

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  • Johansson, Börje

    () (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

  • Johansson, Sara

    (CESIS and CEnSE at Jönköping International Business School)

  • Wallin, Tina

    () (CESIS and CEnSE at Jönköping International Business School)

Abstract

Firms in local industries maintain their capability to generate innovations by simultaneously exploiting internal and external knowledge resources. The paper introduces the notion variety triplet to distinguish individual export varieties, where a triplet is a unique combination of a firm, a product code and a destination country. For each date the set of variety triplets in each local industry records all remaining past product innovations. In view of this the paper examines how internal and external knowledge of local industries influence the industry’s scope and value of export varieties. The paper contributes to existing knowledge firstly by introducing variables that measure a local industry’s access to external supply of knowledge, divided into local and extra-local supply. Secondly, the paper sheds light on how internal and external knowledge influence the scope of product innovations in local industries, with firm-level data from Sweden. Thirdly, the paper compares the influence of knowledge on the entire set of variety triplets and on a separate set of recently introduced varieties.

Suggested Citation

  • Johansson, Börje & Johansson, Sara & Wallin, Tina, 2013. "Internal and External Knowledge – Innovation of Export Varieties," Working Paper Series in Economics and Institutions of Innovation 297, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  • Handle: RePEc:hhs:cesisp:0297
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    References listed on IDEAS

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    1. Borje Johansson & Hans Loof, 2008. "Innovation Activities Explained By Firm Attributes And Location," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(6), pages 533-552.
    2. Martin Andersson & Urban Gråsjö, 2009. "Spatial dependence and the representation of space in empirical models," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(1), pages 159-180, March.
    3. Börje Johansson & John Quigley, 2003. "Agglomeration and networks in spatial economies," Economics of Governance, Springer, vol. 83(1), pages 165-176, October.
    4. Tor Jakob Klette & Samuel Kortum, 2004. "Innovating Firms and Aggregate Innovation," Journal of Political Economy, University of Chicago Press, vol. 112(5), pages 986-1018, October.
    5. Martin Andersson & Börje Johansson, 2008. "Innovation Ideas and Regional Characteristics: Product Innovations and Export Entrepreneurship by Firms in Swedish Regions," Growth and Change, Wiley Blackwell, vol. 39(2), pages 193-224.
    6. Maryann Feldman, 1999. "The New Economics Of Innovation, Spillovers And Agglomeration: Areview Of Empirical Studies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 8(1-2), pages 5-25.
    7. Hasan Faruq, 2006. "New Evidence on Product Quality and Trade," Caepr Working Papers 2006-019, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Bjerke, Lina & Johansson, Sara, 2014. "Innovation and firm collaboration: An exploration of survey data," Working Paper Series in Economics and Institutions of Innovation 383, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    2. Charlie Karlsson & Börje Johansson & Kiyoshi Kobayashi & Roger R. Stough, 2014. "Knowledge, innovation and space: introduction," Chapters,in: Knowledge, Innovation and Space, chapter 1, pages 1-26 Edward Elgar Publishing.
    3. Johansson, Börje & Warda, Peter, 2013. "Internal and External Knowledge Sources of New Export Products," Working Paper Series in Economics and Institutions of Innovation 331, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    4. Wixe, Sofia, 2014. "Firm Knowledge, Neighborhood Diversity and Innovation," Working Paper Series in Economics and Institutions of Innovation 360, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    5. Karlsson, Charlie & Johansson, Börje & Kobayashi, Kiyoshi & Stough, Roger R., 2014. "Knowledge, innovation and space," Working Paper Series in Economics and Institutions of Innovation 367, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    6. Warda, Peter & Johansson, Börje, 2014. "Knowledge Absorption in the Development of Export Products," Working Paper Series in Economics and Institutions of Innovation 368, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.

    More about this item

    Keywords

    Product varieties; innovation; internal knowledge; external knowledge; KIBS;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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