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Digitization and knowledge spillover effectiveness: Evidence from the "German Mittelstand"

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  • Proeger, Till
  • Runst, Petrik

Abstract

The Knowledge Spillover Theory of Entrepreneurship (KSTE) considers determinants of knowledge diffusion as well as their impact on entrepreneurial activities and growth. Extending the KSTE, the role of incumbent firms for the broad diffusion of new knowledge has been emphasized. For those firms, the barriers to an effective flow of information are considered using the concepts of knowledge filters and absorptive capacities. Both concepts enable the derivation of institutional measures to penetrate knowledge filters and systematically increase absorptive capacities. We interpret the process of digitization as a central process of knowledge spillover in recent years and determine digitization-related knowledge filters for particular domains of firm decision-making. Using a consultant-based in-depth evaluation of 200 SMEs conducted in the context of a federal innovation program, structural drivers, firm clusters and domain-specific knowledge filters for digitization are determined. We find little evidence for structural drivers of knowledge spillover effectiveness. However, as firms are clustered according to their digitization pattern, we show that firms realize high degrees of digitization in most domains or in none, leading us to argue that domain-specific knowledge filters are weak. Rather, knowledge spillover in digitization can be considered a process with initially strong general knowledge filter and - once this filter has been penetrated - weaker subsequent domain-specific knowledge filters. Policy and managerial implications for increasing digitization-related knowledge spillovers in SMEs are discussed.

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  • Proeger, Till & Runst, Petrik, 2019. "Digitization and knowledge spillover effectiveness: Evidence from the "German Mittelstand"," ifh Working Papers 20/2019, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    • Handle: RePEc:zbw:ifhwps:202019
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    Cited by:

    1. Runst, Petrik & Proeger, Till, 2020. "Digitalisierung des Handwerks in Niedersachsen - Sonderauswertung des Digitalisierungs-Checks des Kompetenzzentrums Digitales Handwerk," Göttinger Beiträge zur Handwerksforschung 41, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    2. Runst, Petrik & Proeger, Till, 2020. "Digitalisierung des SHK-Gewerks - Sonderauswertung des Digitalisierungs-Checks des Kompetenzzentrums Digitales Handwerk," Göttinger Beiträge zur Handwerksforschung 40, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    3. Runst, Petrik, 2023. "Digitalisierungsmuster im Handwerk: Eine regionale und sektorale Analyse des Digitalisierungs-Checks," ifh Forschungsberichte 11, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    4. Proeger, Till & Thonipara, Anita & Bizer, Kilian, 2020. "Mechanismen, Erfolgsfaktoren und Hemmnisse der Digitalisierung im Handwerk," Göttinger Beiträge zur Handwerksforschung 35, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    5. Proeger, Till & Meub, Lukas & Thonipara, Anita & Bizer, Kilian, 2019. "Digitale Plattformen im Handwerk - eine Analyse von MyHammer und ProvenExpert," Göttinger Beiträge zur Handwerksforschung 32, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    6. Runst, Petrik & Proeger, Till, 2020. "Digitalisierungsmuster im Handwerk - Eine regionale und sektorale Analyse des Digitalisierungs-Checks des Kompetenzzentrums Digitales Handwerk," Göttinger Beiträge zur Handwerksforschung 39, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).

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    More about this item

    Keywords

    Digitization; Knowledge Filter; Knowledge Spillover Theory of Entrepreneurship; Small and Medium Enterprises;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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