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The Diffusion of Informal Knowledge and Innovation Performance: A sectoral approach

Author

Listed:
  • Garcia-Torres, M. Abraham

    (UNU-MERIT)

  • Hollanders, Hugo

    (UNU-MERIT)

Abstract

This paper tries to quantify the effect of diffusion of informal knowledge on the innovative performance of European firms using data derived from the 3rd Community Innovation Survey. When firms are asked whether or not they have introduced new products or processes, they were also asked to which degree such innovations were developed in-house. These degrees were captured by the CIS variables InPdtW and InPcsW. These variables ranged from 1 (Mainly done by the firm) to 3 (Mainly done by other enterprises). The focus of this paper is to investigate the impact of diffusion of informal knowledge. We combine the previous variables with another variable which reflects firms that were not doing any formal collaboration with other institutions. If an innovative firm has no formal collaboration arrangements and the innovation has not been done mainly by the firm, then diffusion of informal knowledge is considered to be the main driver of the innovation. The idea is that informal channels are accessible to all firms. This paper tries to quantify the impact of such flows of knowledge on firms' innovation performance. To do this, a two step procedure is followed: -In a first step, a latent variable for diffusion of informal knowledge is defined and estimated based on firms' characteristics. -In a second step, the latent diffusion variable is introduced as a regressor in a probit/tobit model.

Suggested Citation

  • Garcia-Torres, M. Abraham & Hollanders, Hugo, 2009. "The Diffusion of Informal Knowledge and Innovation Performance: A sectoral approach," MERIT Working Papers 2009-013, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:unumer:2009013
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    File URL: https://unu-merit.nl/publications/wppdf/2009/wp2009-013.pdf
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    Citations

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    Cited by:

    1. Justyna Majewska & Szymon Truskolaski, 2013. "Usługi wiedzochłonne w stymulowaniu innowacyjności w Polsce," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1-2, pages 91-108.
    2. Abiodun A. Egbetokun, 2012. "Cooperation behaviour and innovation performance in the Nigerian manufacturing industry," Jena Economics Research Papers 2012-037, Friedrich-Schiller-University Jena.
    3. Stoetzer, Matthias-Wolfgang & Pfeil, Silko & Kaps, Katharina & Sauer, Thomas, 2011. "Regional dispersion of cooperation activities as success factor of innovation oriented SME," Jena Contributions to Economic Research 2011,4, Ernst-Abbe-Hochschule Jena – University of Applied Sciences, Department of Business Administration.
    4. Olga Chkalova & Marina Efremova & Vladimir Lezhnin & Anna Polukhina & Marina Sheresheva, 2019. "Innovative mechanism for local tourism system management: a case study," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(4), pages 2052-2067, June.
    5. Medase, Kehinde, 2019. "The Impact of the Heterogeneity of Employees’ Qualifications on Firm-level Innovation Evidence from Nigerian Firms," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203563, Verein für Socialpolitik / German Economic Association.
    6. A.A. Egbetokun & A.A. Adeniyi & W.O. Siyanbola & O.O. Olamade, 2012. "The types and intensity of innovation in developing country SMEs: evidences from a Nigerian subsectoral study," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 9(1/2), pages 98-112.

    More about this item

    Keywords

    Knowledge flows; innovation; dynamic equations; sectoral innovation; CIS;
    All these keywords.

    JEL classification:

    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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