Geographies of Growth
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Geographies of Growth

Innovations, Networks and Collaborations

Edited by Charlie Karlsson, Martin Andersson and Lina Bjerke

Today we can observe an increasing spatial divide as some large urban regions and many more medium-sized and small regions face growing problems such as decreasing labour demand, increasing unemployment and an ageing population. In view of these trends, this book offers a better understanding of the general characteristics and specific drivers of the geographies of growth. It shows how these may vary in different spatial contexts, how hurdles and barriers to growth in different types of regions can be dealt with, how and to what extent resources in different areas can develop, and how the potential of these resources to stimulate growth can be realized.
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Chapter 12: Cross-border innovation cooperation: partner selection, national borders and knowledge bases

Innovations, Networks and Collaborations

Rannveig Edda Hjaltadóttir, Teemu Makkonen and Nils Karl Sørensen

Extract

The importance of cooperation in innovation creation has been underlined in recent decades (Zeng et al., 2010; Geum et al., 2013), as faster product life cycles, increasingly complex technology and higher innovation costs have made cooperation between companies essential for successful innovative outcomes. Empirical evidence seems to point towards a conclusion that this cooperation is at least partly affected by national borders meaning that companies tend to look for their innovation partners within the borders of their home countries (Koschatzky, 2000). In Denmark studies on cross-border innovation cooperation have commonly focused on the Oresund region (Lundquist and Winther, 2006; Hansen, 2013), excluding other Danish regions. This chapter, therefore, sets out to analyse the determinants of cross-border innovation cooperation in the whole of Denmark by focusing on partner selection. The aim of the chapter is to investigate the potential heterogeneity in innovation cooperation by exploring differences in the factors that determine the choices between selecting partners from distinct locations: domestic partners, partners within the European Union (EU), USA and in Asia (China and India). A number of factors will be considered including firm and industry specific factors, and the location of firms and their partners. In relation to the location of cooperating firms, this chapter will investigate if firms in border regions are more likely to choose foreign partners than firms in other regions, and explore whether the firms that choose foreign innovation partners share common characteristics. Additionally, industry specific factors will be investigated through the concept of knowledge bases to draw conclusions on whether these patterns and characteristics differ between distinct industrial branches relying on varying ways to cooperate and share knowledge. Previous studies on the determinants of innovation cooperation differentiated by type of firms, location or type of partners have for the most part used separate models in their estimations. As a point of departure, this study follows Belderbos et al. (2004a) by using simultaneous modelling to allow for possible dependencies between the decisions of choosing partners in different locations. Firm level data from the 2010 Community Innovation Survey (CIS) in Denmark was utilized to analyse the intensity of cross-border innovation cooperation with a focus on the choice of a foreign innovation partners. The specific research questions addressed here are as follows: 1. What kind of patterns can be identified in the choice of innovation partners in cooperation activities of Danish firms according to their characteristics and geographical location?

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