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Embeddedness and innovation in low and medium tech rural enterprises

  • Kevin P. Heanue

    ()

    (Rural Economy and Development Programme, Teagasc, Athenry, Co. Galway, Ireland)

  • David Jacobson

    (Dublin City University)

This paper is based on case studies of four low- and medium-technology firms, two in the furniture industry and two in the metal products industry. The research on innovation and geographic proximity, combined with a reconceptualisation of the Granovetterian concept of embeddedness, provides the theoretical context. Among the issues addressed are whether deep, local embeddedness is essential for innovativeness and whether there is a pattern of change over time in the nature of the relationship between embeddedness and innovation. For example, is deep, local embeddedness associated with innovation in the early but not later stages of the development of the firm? The particular elements of innovation that are examined in relation to firm embeddedness are network relations, interactive learning and knowledge base. The results of close examination of the case study firms suggest that different policies may be appropriate for different firms, in different industries, at different stages in their development. Interspersed throughout is discussion of the relevance of the research to rural industrial development.

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File URL: http://www.agresearch.teagasc.ie/rerc/downloads/workingpapers/07wpre02.pdf
File Function: First version, 2007
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Paper provided by Rural Economy and Development Programme,Teagasc in its series Working Papers with number 0702.

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Length: 38 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:tea:wpaper:0702
Contact details of provider: Postal: Athenry, Co Galway
Phone: +353 91 845845
Fax: +353 91 845847
Web page: http://www.agresearch.teagasc.ie/rerc/

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  1. Kevin Morgan, 1997. "The Learning Region: Institutions, Innovation and Regional Renewal," Regional Studies, Taylor & Francis Journals, vol. 31(5), pages 491-503.
  2. Cooke, Philip, 2001. "Regional Innovation Systems, Clusters, and the Knowledge Economy," Industrial and Corporate Change, Oxford University Press, vol. 10(4), pages 945-74, December.
  3. Valerie Cerra & Jarkko Soikkeli, 2002. "How Competitive is Irish Manufacturing?," IMF Working Papers 02/160, International Monetary Fund.
  4. Maskell, Peter & Malmberg, Anders, 1999. "Localised Learning and Industrial Competitiveness," Cambridge Journal of Economics, Oxford University Press, vol. 23(2), pages 167-85, March.
  5. Kevin Morgan, 2004. "The exaggerated death of geography: learning, proximity and territorial innovation systems," Journal of Economic Geography, Oxford University Press, vol. 4(1), pages 3-21, January.
  6. Antonelli, Cristiano, 2005. "Models Of Knowledge And Systems Of Governance," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200501, University of Turin.
  7. Stephen Roper, 2001. "Innovation, Networks and Plant Location: Some Evidence for Ireland," Regional Studies, Taylor & Francis Journals, vol. 35(3), pages 215-228.
  8. Tomokazu Arita & Philip McCann, 2000. "Industrial alliances and firm location behaviour: some evidence from the US semiconductor industry," Applied Economics, Taylor & Francis Journals, vol. 32(11), pages 1391-1403.
  9. Eoin O’Malley & Chris van Egeraat, 2000. "Industry Clusters and Irish Indigenous Manufacturing - Limits of the Porter View," The Economic and Social Review, Economic and Social Studies, vol. 31(1), pages 55-79.
  10. James Simmie, 2005. "Critical surveys edited by Stephen Roper innovation and space: A critical review of the literature," Regional Studies, Taylor & Francis Journals, vol. 39(6), pages 789-804.
  11. Bj–rn Johnson & Edward Lorenz & Bengt-�ke Lundvall, 2002. "Why all this fuss about codified and tacit knowledge?," Industrial and Corporate Change, Oxford University Press, vol. 11(2), pages 245-262.
  12. Ian R. Gordon & Philip McCann, 2005. "Innovation, agglomeration, and regional development," Journal of Economic Geography, Oxford University Press, vol. 5(5), pages 523-543, October.
  13. Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
  14. David Keeble & Clive Lawson & Barry Moore & Frank Wilkinson, 1999. "Collective Learning Processes, Networking and 'Institutional Thickness' in the Cambridge Region," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 319-332.
  15. Rajneesh Narula & Antonello Zanfei, 2003. "Globalisation of Innovation The Role of Multinational Enterprises," DRUID Working Papers 03-15, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  16. Nicolai Foss, 1996. "Higher-order industrial Capabilities and competitive advantage," Industry and Innovation, Taylor & Francis Journals, vol. 3(1), pages 1-20.
  17. Harald Bathelt & Andersand Malmberg & Peter Maskell, 2002. "Clusters and Knowledge Local Buzz, Global Pipelines and the Process of Knowledge Creation," DRUID Working Papers 02-12, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
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