This monthly selection of articles has been carried out by Philippe Gugler and Michael Keller, the Center for Competitiveness, University of Fribourg. The entire selection, carried out since 2013, can now be consulted on the academic articles page of our web.

Another cluster premium: Innovation subsidies and R&D collaboration networks

By Tom Broekel, Dirk Fornahl and Andrea Morrison. Research Policy, Volume 44, Issue 8, Pages 1431-1444, 2015.

Abstract: « This paper investigates the allocation of R&D subsidies with a focus on the granting success of firms located in clusters. On this basis it is evaluated whether firms in these clusters are differently embedded into networks of subsidized R&D collaboration than firms located elsewhere. The theoretical arguments are empirically tested using the example of the German biotechnology firms’ participation in the 6th EU-Framework Programmes and national R&D subsidization schemes in the early 2000s. We show that clusters grant firms another premium to their location, as they are more likely to receive funds from the EU-Framework Programmes and hold more favorable positions in national knowledge networks based on subsidies for joint R&D.» [ABSTRACT FROM AUTHORS]

Success factors of virtual research teams – Does distance still matter?

By : Andrea Hanebuth. Management Revue, Volume 26, Issue 2, 2015.

Abstract: «Purpose of the exploratory study in this paper is to provide a first test of the transfer- ability of success factors known from virtual teams to an innovative virtual research team. Investigating a real R&D cooperation with two virtual (regional & national) and one local research groups permits a comparative analysis of the influence of geograph- ical distance. Though success factors seem to be somehow transferable, the geograph- ical distance is still an influencing factor on the perception in virtual research teams. Based on results of this case study and 18 interviews, a ranking of success factors is provided which may help research managers in understanding where to place empha- sis situationally on in order to successfully manage a virtual research team.» [ABSTRACT FROM AUTHOR]

Internationalisation of R&D: New insights into multinational enterprises’ R&D strategies in emerging markets

By : Stine Jessen Haakonsson and Vandana Ujjual. Management Revue, Volume 26, Issue 2, 2015.

Abstract: «Multinational enterprises’ research and development (R&D) activities are increasingly internationalised and organised into new types of network, as part of their global in- novation networks. In this article, we investigate the dynamics and strategies of R&D reorganisation through an in-depth case study of a global firm from the most global- ised industry in terms of R&D, biotechnology. The article investigates dynamics of in- ternationalisation of R&D in global networks by looking at: 1) the strategic drivers of location, either as a large potential market or as a pool of competencies; and 2) the evolution of the company and its R&D activities into emerging market locations: In- dia, China and Brazil. Together, these two dimensions constitute the drivers of R&D internationalisation and contribute to the construction of global innovation networks through knowledge augmenting and exploiting strategies. The article shows how mul- tinational enterprises can use a combination of augmenting and exploiting strategies in emerging markets and hence demonstrates that international R&D activities not al- ways evolve in a sequential and ordered trajectory.» [ABSTRACT FROM AUTHORS]

Factors Affecting Regional Productivity and Innovation in Israel: Some Empirical Evidence

By : Daniel Felsenstein. Regional Studies, Volume 49, Issue 8, 2015.

Abstract: « The role of human capital and physical capital in determining regional productivity and innovation is examined. Two specific mechanisms through which knowledge becomes an inherently regional asset are investigated: the generation of local externalities (a stock mechanism) and human capital accumulation and mobility (a flow mechanism). Empirically, this connection is investigated using recent advances in spatial panel data analysis applied to regions in Israel. Panel co-integration is used to entangle issues of spurious relationships. Results show that human capital stock has large and relatively consistent effects on both regional earnings and regional innovation levels. Human capital mobility is inversely related to innovation. This is interpreted as reflecting the ‘conduit’ role of the region in the innovation process. Regional capital-to-labour ratios are also inversely related to innovation, implying that physical capital substitutes rather than complements human capital.» [ABSTRACT FROM AUTHOR]

An Evaluation of Competitive Industrial Structure and Regional Manufacturing Employment Change

By : Joshua Drucker. Regional Studies, Volume 49, Issue 8, 2015.

Abstract: « This paper examines the relationship between regional industrial structure and employment change in the manufacturing sector and nineteen subsectors in the United States from 1987 to 1997. The relative associations of economic diversity, industrial specialization and competitive structure with economic performance are assessed using a non-causal regression framework. Multiple facets of industrial structure at the regional scale, including competitive structure, are considered together by exploiting confidential microdata to construct and evaluate detailed metrics across broad geographic and industrial ranges. The findings suggest the importance of industrial competitive structure for understanding regional employment change, economic performance and industrial development.» [ABSTRACT FROM AUTHOR]

From Sub-Regional Networks to Sub-Regional Localism: Experiences of Collaboration in England's Historical Black Country

By : Steven R. Henderson. Regional Studies, Volume 49, Issue 8, 2015.

Abstract: « Uneven development within the English spatial economy has resulted in a succession of national policy prescriptions, the latest phase being sub-regional local enterprise partnerships (LEPs). This paper identifies associated policy instabilities and questions both the strength of pre-existing sub-regional networks and whether such structures are advantageous for coterminous LEPs. A case study of the de-industrializing Black Country highlights strengthening collaboration across four local authorities during the 2000s, in addition to support for a Black Country LEP. Closer analysis reveals limits to network collaboration and the existence of various legacies which pose threats to sub-regional localism. Even in sub-regions with seemingly strong historical identities, prevailing local authority priorities can limit innovative responses to urban regeneration requirements.» [ABSTRACT FROM AUTHOR]

Innovation, Socio-institutional Conditions and Economic Growth in the Italian Regions

By : Giorgio d'Agostino and Margherita Scarlato. Regional Studies, Volume 49, Issue 8, 2015.

Abstract: « An explanatory investigation is carried out into the relationship between social and institutional contextual factors and economic growth in the Italian regions. A three-sector semi-endogenous growth model with negative externalities related to the social and institutional variables affecting the innovative capacity of regional economic systems is constructed. The empirical investigation confirms the presence of non-linearities that depend on the socio-institutional conditions constituting constraints on the translation of innovation into economic growth. The paper suggests that policies targeting the enhancement of local socio-institutional conditions have major repercussions for the innovation capacity and economic growth of the lagging southern regions.» [ABSTRACT FROM AUTHORS]

The Evolution of Innovation Networks and Spin-off Entrepreneurship: The Case of RAD

By : Amnon Frenkel, Emil Israel and Shlomo Maital. European Planning Studies, Volume 23, Issue 8, pp. 1646-1670, 2015.

Abstract: « We conducted an in-depth analysis of an Israeli startup, RAD Bynet, founded in 1981, that has intentionally, through the vision of its founder, given rise to 129 other startups employing some 15,000 workers, and created a unique “cloud”. Through a survey of the existing firms, we sought to explore the nature of this ecosystem and to quantify the relationships that exist between the mother company and the enterprises that emerge from it. Our main findings were: (a) social and technological proximity encourages the tendency of the companies to maintain business relationships that probably contribute to knowledge exchange, while technological diversity drives innovation and startup formation; and (b) firms will choose to cooperate on the basis of a shared past and personal proximity relations, as well as technological proximity at a certain level; “viral clouds” of startups like the one we studied can thus intentionally be designed and developed.» [ABSTRACT FROM AUTHORS]