Abstract
Business interaction is important for innovation performance but may be challenging in cross-border regions. The objective of this research was to investigate the relation between factors that define cross-border business interaction and innovativeness. From the cross-border regional innovation systems literature, we operationalized thirty-five factors which potentially influence cross-border business interaction; these factors concern availability of science and knowledge bases, socio-cultural proximity, accessibility, institutional set-up, and governance. We conducted a survey focusing on these factors and analyzed the data using Cronbach’s alpha and linear regression. The cross-border interaction factors identified in the survey results served as independent variables and the differences in innovativeness levels in different European cross-border regions served as our dependent variable. This study confirmed that differences in innovativeness levels between countries can be related to factors hindering cross-border business interaction.
Highlights
Despite a common market and the free movement of goods in the European Union (EU), national borders continue to be in place politically and administratively
Survey responses were obtained for 17 different European cross-border regions and corresponded to 20 different countries
Survey respondents stem from cross-border regions with different levels of innovativeness, covering a mean Regional Innovation Scoreboard” (RIS) between 61 and 140, where 100 indicates the European mean [9]
Summary
Despite a common market and the free movement of goods in the European Union (EU), national borders continue to be in place politically and administratively. As crossborder regions are fragmented by the jurisdiction of two or more different authorities [3], legal and administrative barriers related to European borders reduce the potential economic performance in the border regions by 8.7%, which equals about 3% of the EU’s GDP [4]. Explanations for the lower economic performance of border regions are differences in culture, administrative structures, and infrastructure, which affect business interactions, networking activities, and transportation cost [5]. Such a fragmentation caused by national borders has an impact on GDP and directly affects enterprises’ operations and the efficiency.
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