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.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Innovation, SMEs, Spatial Proximity, External Interaction
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R10 - General; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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