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Innovating in the periphery: Firms, values, and innovation in Southwest Norway

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How do peripheral and relatively isolated regions innovate? Recent research has tended to stress the importance of agglomeration economies and geographical proximity as key motors of innovation. According to this research, large core areas have significant advantages with respect to peripheral areas in innovation potential. Yet, despite these trends, some remote areas of the periphery are remarkably innovative even in the absence of critical innovation masses. In this paper we examine one such case – the region of Southwest Norway – which has managed to remain innovative and dynamic, despite having a below average investment in R&D in the Norwegian context. The results of the paper highlight that innovation in Southwest Norway does not stem from agglomeration and physical proximity, but from other types of proximity, such as cognitive and organizational proximity, rooted in soft institutional arrangements. This suggests that the formation of regional hubs with strong connections to international innovative networks may be a way to overcome peripherality in order to innovate.

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  • Rune Dahl Fitjar & Andrés Rodríguez-Pose, 2009. "Innovating in the periphery: Firms, values, and innovation in Southwest Norway," Working Papers 2009-13, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
  • Handle: RePEc:imd:wpaper:wp2009-13
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    Cited by:

    1. Liliana Araújo & Sandra T. Silva & Aurora A.C. Teixeira, 2013. "Knowledge spillovers and economic performance of firms located in depressed areas: does geographical proximity matter?," FEP Working Papers 488, Universidade do Porto, Faculdade de Economia do Porto.
    2. Rune Dahl Fitjar & Andrés Rodríguez-Pose, 2014. "When local interaction does not suffice: sources of firm innovation in urban Norway," Chapters,in: Regional Development and Proximity Relations, chapter 5, pages 195-222 Edward Elgar Publishing.
    3. Ana Paula Faria & Natália Barbosa & Vasco Eiriz, 2013. "Firms’ innovation across regions: an exploratory study," NIPE Working Papers 12/2013, NIPE - Universidade do Minho.
    4. Ana Paula Faria & Natália Barbosa & Vasco Eiriz, 2015. "Firm Innovation and Co-Location in Portugal," Growth and Change, Wiley Blackwell, vol. 46(4), pages 574-592, December.
    5. repec:eee:worbus:v:53:y:2018:i:3:p:392-402 is not listed on IDEAS
    6. Riccardo Crescenzi & Alexander Jaax, 2015. "Innovation in Russia: the territorial dimension," Papers in Evolutionary Economic Geography (PEEG) 1509, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Apr 2015.
    7. Neil Lee & Andrés Rodríguez-Pose, 2014. "Creativity, Cities, and Innovation," Environment and Planning A, , vol. 46(5), pages 1139-1159, May.
    8. repec:gam:jsusta:v:10:y:2018:i:1:p:282-:d:128075 is not listed on IDEAS
    9. Fitjar, Rune Dahl, 2017. "Mot en regional innovasjonspolitikk?," UiS Working Papers in Economics and Finance 2017/9, University of Stavanger.
    10. Pia Wassmann & Daniel Schiller & Stephan Thomsen, 2014. "Does Connectivity Impact Innovation Performance in Rural Regions?," ERSA conference papers ersa14p352, European Regional Science Association.
    11. Zhang, Min & Partridge, Mark & Song, Huasheng, 2018. "Amenities and Geography of Innovation: Evidence from Chinese Cities," MPRA Paper 83673, University Library of Munich, Germany.
    12. Richard Shearmur, 2015. "Far from the Madding Crowd," Growth and Change, Wiley Blackwell, vol. 46(3), pages 424-442, September.
    13. Colella, Florencia & Ortega, David, 2016. "Retail Channel and Beef Preferences in Argentina: Experimental Results from Consumers in Buenos Aires," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235551, Agricultural and Applied Economics Association.
    14. François Deltour & Sébastien Le Gall & Virginie Lethiais, 2017. "Innovating not Only in Cities: Evidence from SMEs," Post-Print hal-01758281, HAL.
    15. Helen McGuirk & Declan Jordan, 2011. "Local Labour Market Diversity and Business Innovation: Evidence from Irish Manufacturing Businesses," European Planning Studies, Taylor & Francis Journals, vol. 20(12), pages 1945-1960, June.
    16. McGuirk, Helen & Lenihan, Helena & Hart, Mark, 2015. "Measuring the impact of innovative human capital on small firms’ propensity to innovate," Research Policy, Elsevier, vol. 44(4), pages 965-976.

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    Keywords

    innovation; institutions; distance; trust; open-mindedness; periphery; Norway;

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