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The Role of Regional Context on Innovation Persistency of Firms

Author

Listed:
  • Tavassoli, Sam

    () (RMIT University)

  • Karlsson, Charlie

    () (KTH)

Abstract

This paper analyses the role of regional context on innovation persistency of firms. Using five waves of the Community Innovation Survey in Sweden, we have traced firms’ innovative behaviour from 2002 to 2012, in terms of four Schumpeterian types of innovation: product, process, organizational, and marketing. Employing transition probability matrix and dynamic Probit model and controlling for an extensive set of firm-level characteristics, we find that certain regional characteristics matter for innovation persistency of firms. In particular, those firms located in regions with (i) thicker labour market or (ii) higher extent of knowledge spillover exhibit higher probability of being persistent innovators up to 14 percentage points. Such higher persistency is mostly pronounced for product innovators.

Suggested Citation

  • Tavassoli, Sam & Karlsson, Charlie, 2017. "The Role of Regional Context on Innovation Persistency of Firms," Papers in Innovation Studies 2017/11, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  • Handle: RePEc:hhs:lucirc:2017_011
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    File URL: http://wp.circle.lu.se/upload/CIRCLE/workingpapers/201711_tavassoli_et_al.pdf
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    References listed on IDEAS

    as
    1. Sam Tavassoli & Dimitrios Tsagdis, 2014. "Critical success factors and cluster evolution: a case study of the Linköping ICT cluster lifecycle," Environment and Planning A, Pion Ltd, London, vol. 46(6), pages 1425-1444, June.
    2. Tavassoli, Sam & Karlsson, Charlie, 2015. "Persistence of various types of innovation analyzed and explained," Research Policy, Elsevier, vol. 44(10), pages 1887-1901.
    3. Sam Tavassoli & Dimitrios Tsagdis, 2014. "Critical Success Factors and Cluster Evolution: A Case Study of the Linköping ICT Cluster Lifecycle," Environment and Planning A, , vol. 46(6), pages 1425-1444, June.
    4. Catherine Beaudry & G. Swann, 2009. "Firm growth in industrial clusters of the United Kingdom," Small Business Economics, Springer, vol. 32(4), pages 409-424, April.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    location; innovation; persistence; product innovations; process innovations; market innovations; organizational innovations; firms; Community Inno¬vation Survey;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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