Business Networks and Localization Effects for New Swedish Technology-Based Firms’ Innovation Performance

Rydehell, H., Isaksson, A., & Löfsten, H. (2018). Business Networks and Localization Effects for New Swedish Technology-Based Firms’ Innovation Performance. The Journal of Technology Transfer, 1-30.

30 Pages Posted: 26 Nov 2018

See all articles by Hanna Rydehell

Hanna Rydehell

Chalmers University of Technology - Technology Management and Economics

Anders Isaksson

Chalmers University of Technology

Hans Löfsten

Chalmers University of Technology

Date Written: October 27, 2018

Abstract

This study examines the business networks and localization effects for new technology-based firms (NTBFs) in the context of innovation performance (the number of patents and product differentiation). In this regard, the study includes 28 variables. A survey was conducted in 2016 with 401 Swedish NTBFs that were small and young (the employment mean was 1.80 and the average age of each firm was 28.3 months). The biggest category of NTBFs was knowledge-intensive high-technology services, followed by medium high-technology manufacturing, and high-technology manufacturing. Hypotheses on how business networks and localization are related to innovation performance were tested using principal component analysis, correlation analysis, and regression analysis. The results show that the primary significant factor for innovation performance regarding business networks and localization dimensions are professional network services, while industrial and regional areas also have a positive relationship on product differentiation. Our study also shows that innovation performance enhances firms’ abilities to access external financing through professional network services (e.g., venture capital companies).

Keywords: Business network, Localization, Innovation performance, New technology-based firm, External financing, Entrepreneurship

JEL Classification: L26, M13, O30, O32

Suggested Citation

Rydehell, Hanna and Isaksson, Anders and Löfsten, Hans, Business Networks and Localization Effects for New Swedish Technology-Based Firms’ Innovation Performance (October 27, 2018). Rydehell, H., Isaksson, A., & Löfsten, H. (2018). Business Networks and Localization Effects for New Swedish Technology-Based Firms’ Innovation Performance. The Journal of Technology Transfer, 1-30., Available at SSRN: https://ssrn.com/abstract=3273824

Hanna Rydehell

Chalmers University of Technology - Technology Management and Economics ( email )

Vera Sandbergs Alle 8
Gothenburg, SE-41296
Sweden

Anders Isaksson (Contact Author)

Chalmers University of Technology ( email )

Gothenburg
SE-412 96 Goteborg
Sweden

Hans Löfsten

Chalmers University of Technology ( email )

Gothenburg
SE-412 96 Goteborg
Sweden

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