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Innovation in the periphery: compensation and exploitation strategies

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  • Jakob Eder
  • Michaela Trippl

Abstract

Recent research has challenged the urban bias in economic geography and innovation studies, showing that novelty generation also takes place in peripheral regions. So far, however, analyses focus on how firms innovate despite their unfavourable location and little is said about innovation benefits of peripheral areas. Hence, this article identifies different compensation and exploitation strategies adopted by firms in order to overcome regional innovation constraints and to reap innovation benefits found in the periphery. Drawing on empirical evidence from Austria, our qualitative analysis reveals that innovation in peripheral regions is the outcome of a combination of compensation and exploitation practices.

Suggested Citation

  • Jakob Eder & Michaela Trippl, 2019. "Innovation in the periphery: compensation and exploitation strategies," PEGIS geo-disc-2019_07, Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business.
    • Handle: RePEc:wiw:wiwpeg:geo-disc-2019_07
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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