Abstract
Locational factors, like the quantity and quality of skilled labour, demanding customers, competitors, supporting industries, and research institutions, are assumed to have an influence on the competitiveness of a region and the performance of the regional actors. However, few studies focus on this topic from an innovation network perspective in the energy sector. Our study tries to close this gap: a sample of 128 German innovation networks of companies and research institutes in the energy sector is used to analyse the effects of locational factors on the performance (effectiveness) of innovation projects. Based on the distinctions in Porter’s Diamond Model, we find that two locational factors—the quality and quantity of the demand conditions and skilled labour—have positive effects. In contrast to the widespread assumption in the literature we could not find evidence for positive impacts on the quality and quantity of the competitive environment. In fact, the effect on performance was negative.
Highlights
Since the early 1990s regional networks of actors and their effects on regional development have become major topics in economic research and practice [1,2,3]
Based on the distinctions in Porter’s Diamond Model, we find that two locational factors—the quality and quantity of the demand conditions and skilled labour—have positive effects
We propose that local demand plays an important role for collaborative energy innovation projects and propose the following hypothesis: H2: (The quantity and quality of) Demand conditions have a positive effect on the performance of collaborative energy innovation projects
Summary
Since the early 1990s regional networks of actors and their effects on regional development have become major topics in economic research and practice [1,2,3] Concepts, such as regional innovation systems [4,5] or sector-specific clusters [6], have emerged that describe the necessary industry-specific requirements in a region. These may include comprehensive production systems, demanding customers, adequate infrastructures, governmental support, research institutes or universities [7,8].
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