Knowledge context, learning and innovation: an integrating framework

Stephen Roper1, James H Love2 and Ying Zhou2

June 2014

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’

Understanding the knowledge context

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).

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

Knowledge context – towards an integrated viewTypes of effect (key words):

1 – regional structure and characteristics, regional institutions2 – business groups or networks, social networks, strategic partnerships3 – industry structure, sectoral characteristics

4 – local networks, regional networks, community networks 5 – trade associations, supply chain linkages, supply networks6 – industry districts, agglomeration, regional specialisations

7 – regional cluster networks, openness in a cluster

Accessing external knowledge

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).

From knowledge to innovation

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’.

An integrating framework

Integrating framework

Current work …