Munich Personal RePEc Archive

The effects of the frequency of spatially proximate and distant interaction on innovation by Irish SMEs

Doran, Justin and Jordan, Declan and O'Leary, Eoin (2012): The effects of the frequency of spatially proximate and distant interaction on innovation by Irish SMEs. Published in: Entrepreneurship & Regional Development: An International Journal , Vol. 24, No. 7-8 (2012): pp. 705-727.

[img]
Preview
PDF
MPRA_paper_48267.pdf

Download (236kB) | Preview

Abstract

This paper introduces a new measure to test whether more frequent interaction has a positive effect on innovation by SMEs in the South-West and South-East of Ireland. Based on an original survey, it finds that more frequent interaction increases innovation likelihood, with the probability increasing at a diminishing rate. Distant interaction is more valuable than geographically proximate interaction, although there is a tendency for enterprises to concentrate either on local/regional or national/international interaction. The results question the hypothesis that local interaction is more productive and imply that policy should focus on facilitating SME access to distant agents.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.