European Regional Innovation Research Articles

NEW ECONOMY INNOVATION SYSTEMS: BIOTECHNOLOGY IN EUROPE AND THE USA

It is proposed that developments in the commercialization of science and technology in "new economy" sectors such as telecommunications, information technology and biotechnology presage a new kind of systemic innovation. This is both regionalized and localized around hubs of knowledge-driven entrepreneurship, and subject to extremely rapid exploitation in consequence of search and invest activities of corporate venturing arms of large firms, venture capitalists and business angels. The millennium meltdown of Internet stocks has brought caution but also learning gains to new economy investors, but the underlying model remains robust. Unlike the typical European regional innovation system, which is supported by extensive public sector enterprise support activities, "New Economy Innovation Systems" are far less dependent on public enterprise support intervention. Learning this new, rapid mode of exploitation is essential if commercialization gaps between Europe and North America are to be reduced. The key questions concern the appropriate role of public innovation support, the commercialization advantages and limits of venture capital, and the prospects for the new approach in less-favoured regional settings.

The Firm or the Region: What Determines the Innovation Behavior of European Firms?

This paper examines the determinants of innovation behavior in European firms that are predominantly small and medium in size. The aim is to assess the absolute as well as the relative impact on innovation behavior of firm-specific (i.e., internal) factors on the one hand and region-specific characteristics on the other. Two hypotheses are advanced and tested. The first is that—contrary in part to some recent literature on regional and national innovation systems—firm-specific determinants of innovation are more important than either region-specific or external factors. The second hypothesis is that in high-tech regions dominated by a small number of very large firms the innovation behavior of the smaller firms is more strongly influenced by regional factors than by factors internal to the firm. Whereas the first hypothesis is confirmed by the empirical results presented here, the second is not. Because firm-level innovation determinants are of great importance in the European regions investigated in this study, we suggest that local innovation policy should focus more on the specific needs of small- and medium-sized enterprises (SMEs) in particular regions than on improving regional conditions for innovation in general. The analysis is mainly based on data from the European Regional Innovation Survey (ERIS) and includes information from more than 8,000 interviews with manufacturing firms, service firms, and research institutions in 11 European regions. The logit analyses reported in this paper used data from some 1,800 manufacturing firms.

R&D Cooperation in Innovation Systems—Some Lessons from the European Regional Innovation Survey (ERIS)

Our paper summarizes some of the main results of the European Regional Innovation Survey (ERIS) as far as they are discussed in this special issue of European Planning Studies . The overall target of the ERIS project is a quantitative and qualitative assessment of determinants crucial for the innovation potential of any region, i.e. innovative and non-innovative manufacturing firms, business services and research institutions, as well as the innovative linkages and networks between these actors. Empirical research is based upon almost 8600 questionnaires collected in 11 European regions. Results confirm some of the common hypotheses on the relationship between space and innovation networks but others are contrary to existing scientific knowledge. Obviously the impact of national innovation systems on the innovation activities of manufacturing firms in a given European region is-at least-as strong as the impact of the respective regional innovation system. The spatial range of innovative linkages significantly depends on the size, the type of the cooperation partner, the R&D intensity and the industry of the analysed manufacturing firm. For example, the higher the technology intensity of the industry, the greater is the need of each firm to use intraregional knowledge via innovation linkages. It is therefore an important task in regional innovation policy to promote network-building among firms and other actors of a regional innovation system and to interlink these intraregional networks with national and international knowledge sources.

Innovation Networks and Regional Development—Evidence from the European Regional Innovation Survey (ERIS): Theoretical Concepts, Methodological Approach, Empirical Basis and Introduction to the Theme Issue

A general consensus exists in the debate on innovation-oriented regional development, in which cooperation in innovation between manufacturing firms, service firms and research institutions continues to grow in importance with respect to business success and the economic performance of a region—at least for some region types. The academic discussion, thus far, has been shaped by a large number of outstanding theoretical studies focusing on this topic from the perspective of the innovative milieu concept, the network theory (spatial version), the regional innovation systems approach or the transaction cost theory. Up to now, comparative empirical studies have not been performed evaluating the significance of innovation networks over a sufficiently large and statistically representative data set for the various types of regions. This is the goal of this issue of European Planning Studies, which is introduced in this article. Briefly, the basic concepts for explaining network-oriented regional development are described and the essential features of the European Regional Innovation Survey (ERIS) are presented—developed by a research team of German economic geographers and regional economists. Between 1995 and 1999 ERIS carried out three extensive surveys in 11 European regions with a total return of 8635 questionnaires, in an effort to identify, systematize, and quantify linkages between innovative players. The question of the range of such innovative linkages plays a central role in this analysis.

The Importance of Public Research Institutes in Innovative Networks-Empirical Results from the Metropolitan Innovation Systems Barcelona, Stockholm and Vienna

The recent discussion on economics and regional economics has increasingly stressed the importance of knowledge and information. Research institutes, in particular, are seen as crucial for assisting local firms in their innovation activities. The aim of this paper is to explore the real importance of research institutes supporting innovative activities in businesses. Based on the representative European Regional Innovation Survey the results show that the actual significance of research institutions in the support of firms' innovation processes is smaller than revealed in the concepts of the innovative networks, innovative milieu or learning region.