The Process of Internationalization in Emerging SMEs and Emerging Economies
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The Process of Internationalization in Emerging SMEs and Emerging Economies

Edited by Hamid Etemad

This book, the fourth volume in the McGill International Entrepreneurship Series, brings together 27 top scholars to explore the structural complexities, evolving relations and dynamic forces that are shaping a new system of multi-polar, multi-level international business relations. It examines entrepreneurial efforts and relations in different national and corporate cultures, each embedded in and also constrained by country-specific socio-economic structures and each vying for consumer attentions in competitive global markets.
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Chapter 16: Regional systems of innovation and knowledge entrepreneurship in natural resource-based clusters

Christian Felzensztein and Jaime Olavarría


The role of agglomeration economies and regional clusters in the development and growth of entrepreneurial firms has been a key research theme within the entrepreneurship and management literature over the past two decades. The main focus of this research is on issues relating to economic externalities: economies of scale or scope, and the effects of knowledge diffusion or, as Krugman (1991) defined them, knowledge spillovers. The idea of firm-level innovation and the regional innovation system have been characterized as potential benefits arising from geographic agglomeration in natural resource-based industries. This chapter follows on previous research (Felzensztein and Gimmon 2008, 2009; Felzensztein et al. 2010b) on regional clusters in southern Chile, and this new research project integrates perspectives from entrepreneurship and regional innovation systems. It draws on, and extends, the body of knowledge relating to regional natural resource industry clusters by exploring the role of agglomeration economies and the influence of the knowledge entrepreneur in the development of firm-level and regional externalities.

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