Knowledge sourcing and innovation in Austrian ICT companies – Does geography matter?<br />Franz Tödtling<br />MOC workshop...
Table ofcontents<br />Conceptual background<br />Methodology<br />Austrian regions surveyed<br />Descriptive results<br />...
Innovation and knowledge sourcing<br />Competitiveness of firms and clusters in advanced countries increasingly depends on...
Knowledgesourcing and Geography<br />Company and cluster location matters:different opportunities for knowledge exchangee....
Different types of regional innovation systems<br />Regional Innovation Systems account for density of firms and organisat...
Typesofknowledgesources and geographicallevels<br />The roleofgeographicalproximityvariesbetweentypesofknowledgesources:<b...
Mechanisms and channels for external knowledge exchange<br />7<br />Source: Tödtling et al. 2006<br />
ICT is a generic technology, linked to a broad variety of sectors  key sector of the knowledge economy (OECD 2002, 2006)<...
Research questions<br />How do companies in Austrian ICT subsectors source external knowledge? * what kinds of knowledge s...
Methodology<br />Data generated through FWF/ESF-funded project (“Constructing Regional Advantage”- CRA; 8 European countri...
Regional characteristics<br />11<br />
ICT sector in theregionsinvestigated<br />Seite 12<br />
Innovation indicators<br />13<br />
Geographyofknowledgesources(% of total)<br />14<br />
Geographyofknowledgetransferchannels(% of total)<br />15<br />
External knowledge sourcing and innovativeness<br />16<br />
In-house knowledge (relative importance) and innovativeness<br />17<br />
Multivariate analyses  (1)<br />Four ordinal regression models:<br />Using alternatively logit and cauchit link functions<...
Multivariate analyses (2)<br />19<br />Factors with significant positive effect on innovativeness:<br />R&D cooperations<b...
 Results of multivariate model<br />
Conclusions  (1) Pattern of knowledge sourcing<br />External knowledge sourcing is of considerable importance for investig...
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Franz Tödtling: Does geography matter?

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Franz Tödtling: Does geography matter?

  1. 1. Knowledge sourcing and innovation in Austrian ICT companies – Does geography matter?<br />Franz Tödtling<br />MOC workshop Dec. 2010<br />
  2. 2. Table ofcontents<br />Conceptual background<br />Methodology<br />Austrian regions surveyed<br />Descriptive results<br />Multivariate analyses<br />Conclusions<br />2<br />
  3. 3. Innovation and knowledge sourcing<br />Competitiveness of firms and clusters in advanced countries increasingly depends on innovation<br />A variety of knowledge inputs required  innovation is result of collective process among firms and other organisations<br />Relevant knowledge often located outside the firm  within clusters, innovation systems and networks<br />In-house knowledge needed to source and absorb external knowledge and to apply it to bring forward innovations<br />3<br />
  4. 4. Knowledgesourcing and Geography<br />Company and cluster location matters:different opportunities for knowledge exchangee.g. in metropolitan, industrial, peripheral regions<br />Exchange ofparticularkindsofknowledgeisfavoured by geographic proximity(e.g. complex / tacitknowledgeasagainststandardised / codifiedknowledge) <br />There are different views / findings in the literature regarding the pattern of knowledge interactions and their role for innovationperformance clusters, industrialdistricts, and innovative milieuxemphasizelocal/regional knowledgeexchange global netwoks and communities„local buzz and global pipelines“ ?<br />Seite 4<br />
  5. 5. Different types of regional innovation systems<br />Regional Innovation Systems account for density of firms and organisations, interrelationships between actors, underlying institutional settings and policy dimensions<br />Metropolitan RIS provide many and diverse opportunities for knowledge sourcing and good preconditions for innovation<br />Peripheral RIS face problem of organisational “thinness” few firms and organisations as knowledge sources<br />Industrial RIS often have advantages of specialised clusters; sometimes problems of “lock in”<br />5<br />
  6. 6. Typesofknowledgesources and geographicallevels<br />The roleofgeographicalproximityvariesbetweentypesofknowledgesources:<br />Universities and researchorganisationareoften „distant“ tofirms (cognitive and relational distance)  facetofaceinteractionattheregional levelsupportsknowledgeexchange<br />Customers and suppliersare „close“ from a cognitive and relational perspective and knowledgeexchangeisshapedbyexistingcustomer / suppliernetworks oftenathigherspatialscales/ international level<br />Seite 6<br />
  7. 7. Mechanisms and channels for external knowledge exchange<br />7<br />Source: Tödtling et al. 2006<br />
  8. 8. ICT is a generic technology, linked to a broad variety of sectors  key sector of the knowledge economy (OECD 2002, 2006)<br />It is characterized by a high degree of innovation activity  a high relevance of and importance for the respective RIS<br />Tendency towards spatial clustering  local knowledge flows and spillovers seem to have some relevance besides global networks<br />ICT sector is a very heterogeneous sector (ICT equipment, components, telecom, software, content providers...)  different kinds of knowledge bases are relevant different types of innovation and knowledge links in specific subsectors<br />Characteristics of the ICT sector<br />
  9. 9. Research questions<br />How do companies in Austrian ICT subsectors source external knowledge? * what kinds of knowledge sources * which mechanisms of knowledge exchange * at which geographical levels<br />Does the pattern of innovation and knowledge sourcing vary between types of regions / RIS?<br />How does location / type of RIS and the pattern of knowledge sourcing relate to the innovativeness of companies? <br />Seite 9<br />
  10. 10. Methodology<br />Data generated through FWF/ESF-funded project (“Constructing Regional Advantage”- CRA; 8 European countries participating)<br />Company interviews in three Austrian regions in the following ICT subsectors: <br />Vienna (metropolitan RIS): ICT manufacturing<br />Upper Austria (industrial RIS): Software development<br />Salzburg (“thin” RIS): Software development, ICT service and manufacturing<br />Descriptive analyses of innovation and knowledge sourcing data<br />Multivariate analysis of relationships<br />10<br />
  11. 11. Regional characteristics<br />11<br />
  12. 12. ICT sector in theregionsinvestigated<br />Seite 12<br />
  13. 13. Innovation indicators<br />13<br />
  14. 14. Geographyofknowledgesources(% of total)<br />14<br />
  15. 15. Geographyofknowledgetransferchannels(% of total)<br />15<br />
  16. 16. External knowledge sourcing and innovativeness<br />16<br />
  17. 17. In-house knowledge (relative importance) and innovativeness<br />17<br />
  18. 18. Multivariate analyses (1)<br />Four ordinal regression models:<br />Using alternatively logit and cauchit link functions<br />Considering alternatively the different variance depending on whether the companies belong to ICT manufacturers or to software and service companies<br />Dependent variable: Degree of innovativeness<br />Low: Companies with no patents nor product innovations new to the market<br />Medium: Companies with patents or product innovation new to the market<br />High: Companies with patents and product innovations new to the market<br />Independent variables represent kinds of external knowledge sourcing, in-house knowledge, location, company size and ICT sub-sector<br />18<br />
  19. 19. Multivariate analyses (2)<br />19<br />Factors with significant positive effect on innovativeness:<br />R&D cooperations<br />Knowledge sourcing within region <br />Knowledge sourcing at international level<br />In-house knowledge<br />Share of employees with science degree<br />Location in metropolitan region of Vienna<br />
  20. 20. Results of multivariate model<br />
  21. 21. Conclusions (1) Pattern of knowledge sourcing<br />External knowledge sourcing is of considerable importance for investigated ICT companies  different patterns can be observed:<br />Knowledge from universities, R&D institutes and other knowledge providers is predominantly sourced on the regional level (Vienna, Upper Austria)<br />Knowledge from suppliers and customers is often sourced internationally (in particular in “thin” RIS of Salzburg)<br />Highly interactive mechanisms for knowledge exchange, in particular R&D cooperations, occur frequently on the regional level<br />Formal and informal networks are used at both regional and international levels ( beyond local buzz and global pipelines)<br />21<br />
  22. 22. Conclusions (2)Relation to innovation performance<br />External knowledge sourcing (in particular R&D cooperation) strengthens the innovation performance of firms<br />Positive effects of both regional and international knowledge sourcing on the innovation performance of firms<br />No evidence for the importance of national sources for innovativeness<br />Some evidence found that firms in Vienna are more innovative than those in other locations<br />22<br />
  23. 23. Thank you!<br /><br />23<br />
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