Abstract
This paper explores the patterns of innovation and collaboration by using unique regional survey data on more than 600 Swedish firms. The data also include the smallest firms, which have been largely neglected in the existing literature on innovations. In the context of collaboration, however, small firms are of particular interest because external interactions and joint projects can be expected to play a very central role in innovation processes in firms where internal resources are very limited. The results show that the probability of innovation is higher among collaborating firms, yet not all types of collaborations matter. Extra-regional collaborations appear as most important in promoting firm innovation, and collaboration seems to be most favourable when the partners involved have some organizational or knowledge relatedness. Small firms, in particular, seem to gain from such extra-regional linkages.
Highlights
Over the last 25 years, a path of literature has evolved on innovation and collaborations within regional innovation networks, showing that the local economic milieu plays an important role in stimulating firm innovation (Asheim and Isaksen 2002; Moodysson et al 2008; Simmie 2003; Trippl 2011)
In the final step of the empirical analysis, we further investigate the importance of collaboration for stimulating innovations in small firms
When collaborations are subdivided into relations with client, customer and/or competitors, the results from specification 8 suggest that firms collaborating with suppliers and clients have a higher probability of innovation than firms that do not have any backward or forward linkages in their network of collaborators
Summary
Over the last 25 years, a path of literature has evolved on innovation and collaborations within regional innovation networks, showing that the local economic milieu plays an important role in stimulating firm innovation (Asheim and Isaksen 2002; Moodysson et al 2008; Simmie 2003; Trippl 2011). Innovation is a process where different types of knowledge and competencies are combined. Through participation in different types B Lina Bjerke. Firms can access various kinds of knowledge and information. Through such interactions, small firms can bring together similar innovation capacities as those present in large firms. Large firms carry out more innovations in absolute number, innovation activities are observed in small firms (Ebersberger and Herstad 2012; Gagliardi et al 2013)
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