1. Knowledge context, learning and
innovation: an integrating
framework
Stephen Roper1, James H Love2 and Ying Zhou2
June 2014

2. Objectives of our paper
• In econometric studies of innovation ‘context’
is often reduced to industry and geographic
dummies
• Increasingly allow for elements of ‘openness’
through linkages, however
• But is this the whole story? Here want to
suggest a broader integrating framework
linking
– Firms’ knowledge context
– Firms’ innovation aspirations and capabilities
– Mechanisms for gathering knowledge
– Innovation outputs
• Our argument has three elements:
– Profiling knowledge context – spatial, network
and industry elements
– How do firms access knowledge for
innovation? Interactive, non-interactive and
spillover mechanisms
– Potential mediating factors which may
influence the knowledge context – innovation
relationship : strategy and ‘encoding capacity’

3. Understanding the knowledge
context

4. Dimensions of knowledge
context
• Perhaps (?) three main aspects of knowledge context –
spatial, network and industrial
• Spatial – perhaps key here is represented by quote:
– ‘local knowledge is thus conceptualized as a semi-public good
that is spatially bounded, and access to which requires nothing
more than cluster membership.
– Next, local knowledge exchange is prompt or spontaneous
because local firms are assumed to be more willing to share
knowledge and exchange ideas with other local actors as a
result of shared norms, values, and other formal and informal
institutions that hold down misunderstanding and opportunism’
(He and Wong, 2012, p. 542).

5. Dimensions of knowledge
context
• Networks – network structure and density both linked to innovation
outcomes both positively and negatively through lock-in.
• But also note:
– ‘The mere presence, or absence, of key institutional elements of the
local or regional innovation system also affects their innovative
capacity and their potential to serve as nodes for cluster development.
Many clusters enjoy the knowledge assets and research infrastructure
that are necessary for the development of an innovation-based
development strategy, but they differ dramatically in their capacity to
mobilize these assets in the pursuit of such a strategy’ (Wolfe 2009, p.
186).
• Industry – technological opportunities and appropriability
conditions vary across industries so also important

6. Knowledge context – towards an
integrated view
Types of effect (key words):
1 – regional structure and
characteristics, regional institutions
2 – business groups or networks, social
networks, strategic partnerships
3 – industry structure, sectoral
characteristics
4 – local networks, regional networks,
community networks
5 – trade associations, supply chain
linkages, supply networks
6 – industry districts, agglomeration,
regional specialisations
7 – regional cluster networks,
openness in a cluster

7. Accessing external knowledge

8. Accessing external knowledge – 3
main mechanisms
• Interactive learning – purposive relationships or
partnerships which involve mutual learning (perhaps
more exploratory). Leads to notions of breadth etc.
• Non-interactive learning – purposive knowledge
seeking but learning is one sided (copying, imitation
etc.). Also in CIS.
• Spillovers – ‘being there’- here we mean ‘un-priced,
and unintentional, knowledge externalities which
result from the characteristics of knowledge as a semi-
public or public good’ (Sadri, 2011).

9. From knowledge to innovation

10. Strategic and organisational
moderators
• Firms within a given industry/spatial/network context innovate
differently.
• What explains this heterogeneity? And, inter alia shapes firms’ links
to the knowledge climate
• Two main factors (?)
– Innovation strategy – ambition, risk appetite, innovation v imitation -
> knowledge seeking
– Encoding capacity – the assimilation element of ACAP (we dealt with
the search element already)
• ‘encoding capacity reflects firms’ ability to make use effectively of incoming
knowledge for innovation, and that encoding capacity will therefore play a
moderating role in the relationship between any given level of external
knowledge and marketable innovation’.

11. An integrating framework

12. Integrating framework

13. Current work …