Spatial cooperation patterns and their impact on innovation outcomes: lessons from firms in a low-technology region

Abstract

ABSTRACTThis paper examines cooperation patterns of firms in the German low-technology region of Lower Bavaria. Particular emphasis is placed on the interplay among the spatial scale of cooperation, the form of cooperation and the type of innovation. Generic results show that overall, firms with a spatially more diverse set of cooperation linkages have a higher likelihood of innovating. However, the innovation outcomes differ depending on the spatial scale of cooperation. While cooperation with regional partners positively correlates with low-threshold innovations, cooperation with spatially distant partners positively correlates with product innovations. Surprisingly, it is application-oriented cooperation that channels the relation in both cases. The findings support the view that innovation of firms in low-technology regions is driven by ‘development’ rather than ‘research’. It also suggests that innovation-driven growth may even be possible in regions with limited values on the traditional innovation-supporting factors.