Local Innovation Networks Research Articles

Identifying innovation roadblocks: unveiling knowledge and innovation patterns that hinder commercialisation

ABSTRACT While intellectual property (IP) management is critical for innovation, specific knowledge and innovation patterns within it can obstruct commercialisation. This study explores how these patterns impede the path to market success for emerging innovations. We introduce a novel method to detect and recognise these patterns, offering insights into factors contributing to innovation system failure. Applying the Triple Helix Model, we leverage text mining, network analysis, and structural equation modelling within the Russian pharmaceutical industry. Our research reveals limitations in the triple helix model’s ability to capture problematic innovation patterns. Notably, local-closed and local semi-closed innovation networks emerge as significant barriers to commercialisation, further exacerbated by foreign dominance. While strong actor synergy is crucial, it alone cannot guarantee competitive advantage. Factors like geographical distance, disciplinary silos, and limited external collaboration further hinder success. This study highlights the need for effective knowledge production and collaboration practices, alongside strong synergy, to achieve market-leading innovations. Recognising and addressing these patterns can inform policy decisions, ultimately fostering more robust innovation outcomes, advancing innovation system theory in the process.

International connection, local disconnection: The (heterogeneous) role of global cities in local and global innovation networks

Global cities function as important international innovation hubs and are key nodes in international business networks. Yet this focus on international knowledge networks may render it less likely that global cities establish and maintain intensive local innovation linkages with their surrounding areas. We argue that while the relationship between the global network orientation of global cities and their local linkages with their surrounding areas is negative, the strength of this relationship depends global city and surrounding regions' knowledge base and the ease of local linkage formation. Global linkages are expected to be more detrimental to the establishment of local linkages if the global city is a global technology leader, but less so if the surrounding region has a greater innovation strength and is more proximate to the global city. We find partial support for these hypotheses in an analysis of the collaborative innovation linkages of 21 U.S. global cities with 310 surrounding counties, 2001–2015.

The role of headquarters in managing coopetition within MNCs: a tale of two paradoxes

PurposeThe purpose of this paper is to contribute to the discussion on how multinational company (MNC) headquarters (HQs) can manage the existing coopetition paradox to ensure innovation within the MNC. In contrast to the rather scarce previous research, the authors argue that HQ needs to solve the coopetition paradox under the sway of a parenting paradox. Hence, HQ faces a dual paradox.Design/methodology/approachDrawing on the literature on HQ’s role during MNCs’ innovation processes, this conceptual paper revisits the previously suggested HQ measures to enable coopetition among subsidiaries. By applying a sheer ignorance perspective, the authors contribute with a more nuanced understanding of the HQ’s role in innovation activities.FindingsThe article identifies four challenges as the HQ faces a parenting paradox that hinders its ability to solve the coopetition paradox: context specificity of subsidiaries’ innovation work, normative expectations of subsidiary managers, potential opportunistic behavior of HQ manager and HQ underestimation of needed resources. The article suggests that HQ needs to become more informed and preferably even embedded in the local innovation networks of its most important subsidiaries and that coopetition should not be managed solely on an HQ level.Originality/valueAdvocating a sheer ignorance perspective, the article pioneers in discussing the role that HQ plays in managing coopetition among subsidiaries in innovation activities.

Local context of local government participation in the innovation networks: Evidence from Poland

Abstract Innovation networks help to create innovation ecosystems by strengthen interactions between government, academia, business, and special institutions. The purpose of the article is to identify the relationship between the local context, i.e., the conditions and environment in which the Local Government Unit operates and their participation in the innovation networks. The analysis is based on a survey of 184 local government authorities in Poland, Local Administrative Unit level 2. The present study examines the hypothesis that the more supportive the local context is in the Polish municipalities and cities on district rights, the greater the engagement of local government authorities in local or regional innovation networks. The supportive local context was defined by a set of institutional, economic, geographical, demographic, cultural, political, managerial, and administrative factors. The research findings indicate that the key factors that influence the engagement of local government in local or regional innovation networks are institutional factors.

THE IMPACT OF INSTITUTIONS ON INNOVATION NETWORKS: EMPIRICAL EVIDENCE FROM POLAND

Innovation networks may accelerate and improve the innovation process, while institutional pathologies may hamper it. This study employs the Kruskal-Wallis H test and regression analysis to determine if the relationship between institutions and innovation networks does exist among the investigated variables. The purpose of the study was to find out whether cooperation with special local institutions influences the innovative behaviour of local governments manifested by participation in innovation networks or innovation networks based on formal institutions limit institutional pathologies better than informal ones. Current paper presents results of an empirical study conducted through survey among all local governments in Poland. The findings show that previous cooperation with special local institutions influences the innovation behaviour of local governments or innovation networks based on formal rules limit the institutional pathologies of innovation networks better than those based on sanctions, common values, codes of ethics, governance codes or culture. The investigated problem is significant, as properly functioning innovation networks may generate incremental innovations, which may help to solve the contemporary challenges. The practical implications for national regulatory bodies highlight the need for an enforcement mechanism which may support the formalisation of innovation networks.

Assessment of innovation policy standards’ impact on local development of renewable energy in Palestinian local government units

Renewable Energy Systems are considered to be a powerful component of local sustainability innovation strategies. This paper uses a policy mix approach to study innovation policy criteria, which include municipalities' location factors, stakeholder collaboration activities, and local knowledge about renewable energy sources and projects. The aim is to study the impact of these factors on decision-making and developing renewable energy projects and their local sources. Moreover, this paper aims to understand the impact of the mix of different policies on the energy sector and technological innovation systems, through the innovation policy criteria that has been identified. These impacts are studied as they constitute the policy mix, and affect the process of developing renewable energy sources in the Palestinian municipalities and local councils. In this study a sample of 216 Palestinian municipalities and local councils is analyzed. The results indicate the need for policymakers to promote cooperation between the public and private sectors, and the importance of focusing on location factors such as energy import reduction, incentives, and emissions that directly affect renewable energy sources. Whereas, local knowledge does not have a direct impact on the process of developing renewable energy systems, as it can constitute indirect support at a later stage for the implementation of other policy criteria discussed in this study. The results confirm that increasing the potential for developing renewable energy sources takes place when policymakers adopt the role of facilitator and establish a local innovation network in which different actors cooperate so that public and private stakeholders can provide support in order to develop local renewable energy systems.

The leading role of support organisations in cluster networks of developing countries

ABSTRACT Previous literature on innovation in developing countries has studied the relevance of public policies and support organisations, which can compensate for the weaknesses of local innovation networks. However, from a social network approach, this issue remains understudied. Aiming to fill this gap, this paper analyses the role of support organisations in four cluster networks of Uruguay. Using data from interviews with managing directors of 265 firms and combining social network analysis with logistic regression techniques, the paper shows that organisations play two fundamental roles. First, they contribute to the overall architecture of collaborations, occupying strategic positions that keep networks connected. Second, they encourage innovation in the firms they collaborate with. In this regard, findings indicate that collaborating with different types of organisations influences firms’ innovation differently. These results have several policy implications regarding the design of cluster policies and organisational frameworks in developing countries.

Enhancing Entrepreneurship Using High-Resolution Innovation Network Interventions

A broad conceptual framework is provided within which to facilitate entrepreneurial behavior, based on high-resolution characterization of local innovation networks. The entrepreneur functions at the interfaces of network and information subdomains. The characteristics of these subdomains are considered in light of potential network structural transitions and approaches to inducing them . There are supportive and specific regime-change-forcing actions States can take to enhance their innovation networks. The former includes: increasing the connectivity of the innovation network, improving the network’s access to information, and increasing the diversity of the network’s nodes. The latter, regime-forcing actions, include: specific technologist or company attraction, incentivizing behavior of innovation sub-network communities, enhancing specific endogenous feedback processes, and providing specific decision support information. The selection of targeted network interventions requires insights from network modeling as well as models of the entrepreneurial process itself. By focusing on information flow into the innovation network and its utilization, the behavior and needs of the entrepreneur are clarified, and ways to broadly enhance entrepreneurial success emerge that can be practically implemented.

Open innovation and network dynamics. An analysis of openness of co-patenting collaborations in Florence, Italy

PurposeThe purpose of this paper is to investigate the relational dynamics for innovation and, in particular, the impact of the openness of innovation process on the innovation capacity of organisations in restricted geographical contexts.Design/methodology/approachThrough a negative binomial regression, the work analyses how the characteristics of the openness of the organisation’s innovation process in the period 2004-2010 influence the firm’s patent productivity in the following period (2011-2016).FindingsThe breadth of the open innovation (OI) process, here measured by the number of external network ties that an organisation realises for the realisation of its patents, has a positive effect on patent productivity. The depth of the openness, that is, the intensity of external network ties, has an equally positive influence on the innovative performance. However, after a tipping point, the patent productivity tends to decrease, underlining the costs and problems of OI practices.Research limitations/implicationsThis study considers only patent collaborations in the city of Florence. Therefore, it focusses on codified innovations and on a single territorial case study.Practical implicationsThe results underline the importance of the adoption of OI practices in restricted geographical contexts (such as cities, clusters or industrial districts) but with several limitations. Only collaborating more with others does not foster the organisation’s invention productivity, but different types of evidence are found here.Originality/valueAn original database has been created, containing all the information on patents realised in the area of Florence from 2004 until 2016, and a social networks analysis was applied to identify the local innovation networks.

The effect of innovation network size and public R&D investment on regional innovation efficiency

Although central governments are expanding research and development (R&D) investment in peripheral areas in many countries, interregional differences in innovation efficiency remain an unsolved problem. Hence, we evaluate the regional efficiencies of technology development and commercialization in South Korea using two-stage data envelopment analysis. This study first calculates the efficiencies, and then uses the efficiency values to test the hypotheses. Using nonparametric tests, we analyze whether the two contextual factors of innovation network size and public R&D, cause differences in the regional innovation efficiencies. The results show that commercialization efficiency is statistically higher in regions where the innovation network is larger than average. In particular, technology development efficiency is higher in regions where R&D is more public-focused than average, even though the local innovation network is small. The findings indicate that governments should consider policies combining public investment with network building to improve efficiencies and generate technological and commercial value from regional innovation.

Effects of Cluster Policies on Regional Innovation Networks: Evidence From France

Despite the growing body of literature evaluating cluster policies, it still remains difficult to establish conclusively their structural effects on regional innovation networks. Focusing on the French cluster policy during the period 2005-2010, this study aims at evaluating how cluster policies influence the structure of local innovation networks following network topologies that may be beneficial for regional innovation. Based on a panel data of four periods and 94 NUTS3 French regions, we estimate spatial Durbin models, allowing us to identify direct, indirect and total effects of cluster policies. The results suggest that cluster policies can result in both positive and negative total effects on the structure of local innovation networks depending on regions’ technological specialisation. Beyond the heterogeneous effects, the results also highlight that cluster policies may lead to a regional competition for the strengthening of innovation networks. This finding echoed previous research pointing out the possible ‘beggar-thy-neighbour’ effects of cluster policies.

Livelihood exposure to climatic stresses in the north-eastern floodplains of Bangladesh

In this paper, we seek to better understand the temporal and spatial aspects of climatic stress on local resource production systems and resource-use behaviors by including the perspectives of resource-dependent communities. Field research was conducted over a nine-month period in the remote north-eastern floodplain communities of Bangladesh, considered one of the most climate-vulnerable, least developed and under-studied regions in the country. This area is heavily dominated by wetland ecosystems, and subjected to regular seasonal flood and extreme rainfall events. Beyond these regular stresses, flash-floods and drought are the two most destructive climatic stresses on livelihood sustainability in the area. Data were collected in 12 villages bordering two significant wetlands (Hakaluki haor and Tanguar haor), involving focus group discussions (n = 14), key informant interviews (n = 35) and household surveys (n = 356). Our results show that climatic stresses on rural livelihoods are catalyzed by human-induced environmental degradation and local resource use behaviors, contextual features that include both socio-economic and bio-physical properties. A climatic event appeared as a stress to livelihood sustainability when it happened in an untimely manner (e.g., flooding during resource harvesting periods) and directly affected the production process (e.g., agriculture and fisheries). We also found that human stress perceptions varied with the level of locally-driven innovation and adoption of technologies, which supports the important role of local experience and knowledge in adaptation planning. Further research is needed into how communities in different settings are already organizing to manage perceived climatic stresses, including traditional knowledge systems, local innovation networks and livelihood practices to help better contextualize adaptation policy.

The contribution of innovation policy criteria to the development of local renewable energy systems

Renewable energy systems (RES) are becoming a strong component of local sustainable innovation strategies. Using a policy mix perspective, this paper investigates innovation policy criteria from municipalities’ locational factors, cooperation activities among stakeholders, and local knowledge about RES as antecedents to see how they leverage the development of local RES. We studied these antecedents at a local level by analyzing a sample of 727 middle and large German municipalities using instrumental variables regression. Our results indicate that policymakers should focus on building local knowledge related to RES for local actors and with enhancing public-private cooperation activities. However, we did not find that locational factors such as direct incentives and energy and emissions reductions have a direct impact on RES. We suggest that these locational factors can provide indirect support for RES, as a starting point for the implementation of other policy criteria which we investigated in our study. Our findings also indicate greater RES development potential when policymakers adopt a facilitator role and support local innovation networks among different actors rather than keeping RES development activities within the municipality itself. In such an innovation network, stakeholders from non-municipality public and private institutions offer additional support to develop a local RES.

Inducing phase transitions in local innovation networks: Implications for state economic development

States can undertake innovation system network-focused actions to enhance their entrepreneurial networks. Actions directed primarily at creating transitions in their innovation network structure include: identifying the components and connectivity of the innovation network (persons, entities, businesses, etc.) and communicating with the network; establishing intermediary organizations (academies, roundtables, councils, etc.); establishing interfacial organizations to enhance information diffusion; and creating and supporting an Informatics HUB to facilitate network functions. Actions to enhance information access and communications within the innovation network include: ensuring local access to global information; supporting personal and business interactions within and outside of the local innovation system; supporting creation and maintenance of missing databases; supporting recruitment of talent in gap areas; and utilizing knowledge analytics to identify local overlaps with the global knowledge base. These are relatively inexpensive, but nonetheless challenging, alternatives to firm-level direct payments or incentives typically used by local governments. This Perspective briefly sketches the rationale behind these and related recommendations.

The contrasting effects of active and passive cooperation on innovation and productivity: Evidence from British local innovation networks

This paper studies the contrasting effects on innovations and productivity arising from active cooperation in innovation activities among competitors and from passive cooperation induced by these activities’ spillovers. A three-stage productivity function is estimated showing that firms’ innovations are supported by their active cooperation within their local innovation network of suppliers and customers and by passive cooperation through sectors’ spillovers. Contrary to this, active cooperation in innovation activities among competitors reduces their innovation rates and, indirectly, productivity. Hence, innovation policies and strategies aimed at restraining active cooperation among competitors, while encouraging it within a firm's local innovation network, may contribute to the system-wide introduction of process and product innovations and ultimately productivity.

Networking and learning for tourism innovation: evidence from the Western Cape

ABSTRACTThis paper examines the nature of networking and learning by tourism firms in relation to accessing knowledge for innovation. In particular, the nature of tourism learning and networking, geography of networking linkages, and systemic characteristics of relationships between tourism firms, government agencies, higher education institutions, and other organisations in the Western Cape tourism system are examined. The analysis draws on 182 tourism firm, tourism system, and contextual interviews. This investigation demonstrates that even though tourism firms mostly use internal resources for innovation, external, non-local knowledge is significant for enhancing novel innovation. It is disclosed that whilst local network linkages are dense, loose, and of importance for business and marketing purposes, extra-regional network relationships are imperative for learning in relation to innovation. As further observed, network linkages between local and regional actors for supporting tourism innovation in the Western Cape are generally weak which points to the underdevelopment of local and regional innovation networks or systems. The paper provides planning recommendations for enhancing the competitiveness of tourism firms towards fostering development and growth in the regional tourism economy. Specifically, support for stimulating learning networks as well as strengthening systemic relationships in the Western Cape tourism system are recommended. It is underscored that strategic relationships with non-local partners need to be nurtured towards fostering tourism innovation and enhancing regional competitiveness.

Brokerage activities in regional innovation networks: the case of Daegu Technopark in Korea

ABSTRACTThis paper examines the concepts of local clusters and regional innovation networks and discusses the significance of ‘network brokerages’ in issues of local economic development and governance. The brokerage activities particularly affect the linkage structures and characteristics of regional networks. This research discusses each of these features in turn, and develops structural, divisional, or procedural models of them. The paper then turns to the empirical examples of brokerage activities by Daegu Technopark to illustrate the ways in which a local broker and related actors have been functioning. The analysis of Daegu Technopark case indicates that the positive results of network brokerages are mainly due to the proximity and willingness of a network broker to local firms, the making and operation of public programmes suitable to local conditions, differentiation to linkage purposes, the provision of contact opportunities, flexible manoeuvring and consensus-building efforts, and an active-minded leadership applicable to the circumstances. It is, of course, apprehended that Daegu Technopark shows some signs of potential limitations in the grasping and activating processes of regional potentials, such as a discontented aspect of managerial capability, a budgetary deficit, and a distorted process of performance evaluation system.

Unpacking the geography of tourism innovation in Western Cape Province, South Africa

Abstract This paper interrogates the geography of tourism innovation in the Western Cape, South Africa. In particular, innovations by tourism firms are mapped and local tourism innovation networks are analysed. Networking behaviour is examined since it is regarded as indispensable for accessing knowledge and learning for innovation purposes. The analysis draws on a broader investigation of tourism innovation and networking within the Western Cape province. It is revealed that the main tourist regions in the Western Cape are also the most innovative. Whilst external networking relations are observed to be highly significant for tourism innovation, local embeddedness remains critical for stimulating path creation and exploiting local core competencies for the competitiveness and survival of tourism firms and destinations.

Central places or networks? Paradigms, metaphors, and spatial configurations of innovation-related service use

It has been suggested that a paradigm shift has occurred in the study of urban systems, central places being displaced by networks because the latter are better suited to currently observable processes. Cities are understood as harbouring local networks (milieu, clusters, buzz), as well as being themselves functionally specialised nodes in wider nonhierarchical networks. We test the empirical validity of this contention by analysing the geography of service use by innovators in Canada. Consistent with the results of Christaller, we find that use of local services diminishes as one moves down the urban hierarchy, and services most strongly connected with innovation—which we deem to be high-order—have the highest probability of being sourced at its summit. Our conclusions interrogate some of the assumptions that underpin local innovation networks, question whether the network approach can apprehend all aspects of urban systems, and discuss in what respect contention that there has been a paradigm shift is warranted.

The challenges of innovation for sustainable agriculture and rural development: Integrating local actions into European policies with the Reflective Learning Methodology

The linear view of innovation in agricultural contexts is being replaced by systems approaches. Agricultural producers are seen as important actors rather than merely consumers of the technologies that are generated by agricultural research and transferred by education and extension services for subsequent adoption. This new understanding of innovation for sustainable agriculture is however not reflected within the European policy framework, so learning and innovation networks for sustainable agriculture (LINSA) have formed in response. The support needs of these innovation networks are poorly understood which hampers their integration into policy. A participatory action research approach – the Reflective Learning Methodology was developed and applied to address the challenge of up-scaling from local learning and innovation networks to a regional, in this case European, support framework for innovation in sustainable agriculture. We examine the Reflective Learning Methodology by describing and analysing its application in a European level action research project. This approach involves identifying some of the challenges of transdisciplinary research and finding ways of addressing them and critically reflecting on the role of the researcher in participatory action research. With the Reflective Learning Methodology, we have developed a tool, which has the potential to be adapted to research projects in other contexts.