Firm Collaboration and Modes of Innovation in Norway
Rune Dahl Fitjar
International Research Institute of Stavanger
London School of Economics & Political Science (LSE) - Department of Geography and Environment
CEPR Discussion Paper No. DP8484
This paper examines the sources of firm product and process innovation in Norway. It uses a purpose-built survey of 1604 firms in the five largest Norwegian city-regions to test, by means of a logit regression analysis, Jensen et al.'s (2007) contention that firm innovation is both the result of science, technology and innovation (STI) and doing, using and interacting (DUI) modes of firm learning. The paper classifies different types of firm interaction into STI-mode interaction (with consultants, universities, and research centres) and DUI-mode interaction, distinguishing between DUI interaction within the supply-chain (i.e. with suppliers and customers) or not (with competitors). It further controls for the geographical locations of partners. The analysis demonstrates that engagement with external agents is an important source of firm innovation and that both STI and DUI-modes of interaction matter. However, it also shows that DUI modes of interaction outside the supply chain tend to be irrelevant for innovation, with frequent exchanges with competitors having a detrimental effect on a firm's propensity to innovate. Collaboration with extra-regional agents is much more conducive to innovation than collaboration with local partners, especially within the DUI mode.
Number of Pages in PDF File: 25
Keywords: Competitors, Customers, DUI, Firms, Innovation, Norway, STI, Suppliers, Universities
JEL Classification: L14, O31, O32working papers series
Date posted: July 20, 2011
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