Entrepreneurship and Innovation Policies for Growth
Edited by David B. Audretsch and Mary Lindenstein Walshok
Chapter 4: The strategic recombination of regional innovative capacities: public–private institutions as knowledge bridges
Just how a region or state improves the international competitiveness of its firms is nowhere more prescient and challenging than in the emerging market countries, where the norm is often being stuck in some sort of long-term low equilibrium trap. For the past 20 years, scholars and policymakers alike have increasingly focused on how firms and industries in these countries are able to upgrade to compete in the world – shifting from lower to higher value added activities based on a society’s innovative capacities (Doner et al. 2005; Giuliani et al. 2005). As Moran and Ghoshal (1999) argue, a key puzzle for development is identifying the institutional conditions, in turn the public policies, which help firms create the ‘dynamic capabilities’ to continually improve their products, processes, and functions. Scholars of innovation and regional development have offered three related observations to this problem. First, drawing on evolutionary and knowledge-based views of the firm (Nelson and Winter 1982; Kogut and Zander 1992), they have argued that upgrading improves in large part from a firm’s access to a variety of knowledge resources (Fleming 2001).
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