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The Geography of Innovation: Regional Innovation Systems (Introduction…
The Geography of Innovation: Regional Innovation Systems
Introduction
Two paradoxical characteristics of the contemporary
Innovative activity is not uniformly or randomly distributed across the geographical landscape
the more knowledge intensive the economic activity, the more geographically clustered it tends to be
this tendency towards spatial concentration has become more marked overtime
reality contradicts longstanding predictions that the increasing use of information and communities technologies would lead to the dispersal of innovative over time
This chapter that this geography is fundamental, not incidental, to the innovation process itself
the goal is to demonstrate why this is true, and to examine how innovation systems at the sub national scale play a key part in producing and reproducing this uneven geography over time
This chapter addresses four key issues
Why does location matter when it comes to innovative activity?
production, circulation are the core of innovation
what are regional innovation systems, and what role do they play in generating and circulating new knowledge leading to innovation
what is the relationship between local and global knowledge flows, and is there any evidence that the global nature of today's economy has weakened or altered the influence of proximity on the geography of innovation
Types of Knowledge and their Geographies
Competitive era in which success depends increasingly upon the ability to produce new or improved products and processes, tacit knowledge constitutes the most important basis for innovation-based value creation, the creation of unique capabilities and products depends on the production and use of tacit knowledge
Logical and interesting consequence of the present development towards a global economy is that the more easily codifiable knowledge can be accessed, the more crucial does tacit knowledge become for sustaining or enhancing the competitive position of the firm.
tacit knowledge is a key determinant of the geography of innovative activity
two elements to this argument
because it defies easy articulation or codification, tacit knowledge is difficult to exchange over long distance. It means arising from the social and institutional context in which it is produced.
relate to the changing nature of the innovation process , the growing importance of socially organized learning processes,innovation has come to be based increasingly on the interactions and knowledge flows between economies entities, research organization, and public agencies
combine two features of he innovation process
the centrality of sticky context laden tacit knowledge and the growing importance of social interaction-it becomes apparent why geography matters so much
explore the character and geographical consequences of tacit knowledge, tacit knowledge does not easily because its transmission is best shared through face to face interaction between partners who already share some basic commonalities; the same language; common codes of communication and shared conventions and norms
distinct institutional endowment that embeds knowledge and allows for knowledge creation which through interaction with available physical and human resources - constitutes its capabilities and enhances or abates the competitiveness of the firms in the region.The path dependent nature of such localised capabilities makes them difficult to imitate and they thereby establish the basis of sustainable competitive advantage
Varieties of regional innovation systems
narrow definition
incorporates the R&D functions of universities, public and private research institues and corporations, reflecting a top down, linear model of innovation
broad definition
all parts and aspects of the economic structure and the institutional set up affecting learning as well as searching and exploring. This broad definition incorporates the elements of a bottom-up, interactive innovation model
empirical richness of the relationships linking the production structure to the institutional set up, There are three types of RISs
be denoted as territorially embedded regional innovation systems,
RIS is the regionally network innovation system)
the relation between regional and national innovation systems
RIS concept has begun to explore the linkage the lager institutional framework of the national innovation system and national business system, and the character of regional innovation systems(which he refers to as the institutional regional innovation system -IRIS) and the new economy innovation system(NEIS) which refers to as an entrepreneurial regional innovation system ERIS