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The regional embeddedness of small manufacturing and service firms: regional networking as knowledge source for innovation?

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  • Koschatzky, Knut
  • Zenker, Andrea

Abstract

Information and knowledge are important prerequisites for innovation activity in firms. One important means of acquiring coplementary knowledge are innovation networks. Depending on their absortive capacity and knowledge base, firms develop different abilities to access and utilise external knowledge. These abilities might also be linked to firm size. Although size as such is not a decisive criterion for distinguishing between the innovative performance of firms, it can at least be used to classify firms according to common structural characteristics. It is objective of this paper to analyse whether the size of a firm significantly affects its innovative behaviour and cooperation pattern and whether there are differences between manufacturing firms and business-related service firms. Using data from a regional innovation survey carried out in Germany, we come to the conclusion that for structural firm characteristics, innovation strategies, information use and innovation network size matters. Small manufacturing and service firms mainly behave similar and are more regionally orientated in their market reach and knowledge acquisition than large firms- Especially small firms in intermediate and rural areas strongly depend on regionally available knowledge sources and are therefore discriminated compared to large firms which make a more frequent use of knowledge and information sources from outside the region.

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  • Koschatzky, Knut & Zenker, Andrea, 1999. "The regional embeddedness of small manufacturing and service firms: regional networking as knowledge source for innovation?," Working Papers "Firms and Region" R2/1999, Fraunhofer Institute for Systems and Innovation Research (ISI).
    • Handle: RePEc:zbw:fisifr:r21999
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    1. Koschatzky, Knut, 2000. "The regionalisation of innovation policy in Germany: theoretical foundations and recent experience," Working Papers "Firms and Region" R1/2000, Fraunhofer Institute for Systems and Innovation Research (ISI).
    2. Roberto Antonietti & Giulio Cainelli, 2011. "Geographic concentration and vertical disintegration in KIBS: evidence from the metropolitan area of Milan," Openloc Working Papers 1105, Public policies and local development.
    3. Cristina Lavía & Beatriz Otero & Eneka Albizu & Mikel Olazaran, 2021. "Exploring the Intensity of Relationships with Vocational Education Centres: A Typology of Spanish SMEs," Sustainability, MDPI, vol. 13(16), pages 1-12, August.
    4. Muller, Emmanuel & Zenker, Andrea, 2001. "Business services as actors of knowledge transformation: the role of KIBS in regional and national innovation systems," Research Policy, Elsevier, vol. 30(9), pages 1501-1516, December.
    5. Roberto Antonietti & Giulio Cainelli, 2007. "Spatial Agglomeration, Technology and Outsourcing of Knowledge Intensive Business Services Empirical Insights from Italy," Working Papers 2007.79, Fondazione Eni Enrico Mattei.
    6. Muller, Emmanuel & Zenker, Andrea, 2001. "Business services as actors of knowledge transformation and diffusion: some empirical findings on the role of KIBS in regional and national innovation systems," Working Papers "Firms and Region" R2/2001, Fraunhofer Institute for Systems and Innovation Research (ISI).
    7. Koschatzky, Knut, 2001. "Innovation und Kooperation bei unternehmensnahen Dienstleistern in Baden, Gironde und Südholland: ein Vergleich zwischen jungen und alten Betrieben," Working Papers "Firms and Region" R1/2001, Fraunhofer Institute for Systems and Innovation Research (ISI).
    8. Nicoletta Corrocher & Lucia Cusmano & Andrea Morrison, 2009. "Modes of innovation in knowledge-intensive business services evidence from Lombardy," Journal of Evolutionary Economics, Springer, vol. 19(2), pages 173-196, April.
    9. Bross, Ulrike & Koschatzky, Knut & Stanovnik, Peter, 1999. "Development and innovation potential in the Slovene manufacturing industry: first analysis of an industrial innovation survey," Working Papers "Firms and Region" R1/1999, Fraunhofer Institute for Systems and Innovation Research (ISI).
    10. José Andrade & Mário Franco & Luis Mendes, 2023. "Facilitating and Inhibiting Effects of Organisational Ambidexterity in SME: an Analysis Centred on SME Characteristics," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 35-64, March.
    11. Meng, Rüdiger, 2009. "Standort und Innovation - Innovationsaktivitäten und Forschungskooperationen von Unternehmen aus regionaler Perspektive," Arbeitsmaterial der ARL: Aufsätze, in: Dannenberg, Peter & Köhler, Hadia & Lang, Thilo & Utz, Judith & Zakirova, Betka & Zimmermann, Thomas (ed.), Innovationen im Raum - Raum für Innovationen: 11. Junges Forum der ARL, 21. bis 23. Mai 2008 in Berlin, volume 127, pages 40-52, ARL – Akademie für Raumentwicklung in der Leibniz-Gemeinschaft.
    12. Knut Koschatzky & Elisabeth Baier, 2012. "The Impact of Regional Institutional Characteristics on the Location of MNCs – a European Perspective," Chapters, in: Martin Heidenreich (ed.), Innovation and Institutional Embeddedness of Multinational Companies, chapter 9, Edward Elgar Publishing.
    13. Koschatzky, Knut & Bross, Ulrike, 1999. "Struktur und Dynamik von regionalen Innovationsnetzwerken unter Transformationsbedingungen - das Beispiel Slowenien," Working Papers "Firms and Region" R4/1999, Fraunhofer Institute for Systems and Innovation Research (ISI).
    14. Roberto Antonietti & Giulio Cainelli, 2012. "Urban size and KIBS vertical disintegration: Evidence from Lombardy," ERSA conference papers ersa12p666, European Regional Science Association.

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