Searching for innovation in market and transition economies : evidence across Europe


Sofka, Wolfgang ; Grimpe, Christoph


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URL: http://ub-madoc.bib.uni-mannheim.de/2498
URN: urn:nbn:de:bsz:180-madoc-24981
Document Type: Working paper
Year of publication: 2009
The title of a journal, publication series: None
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: O32 L60 ,
Subject headings (SWD): Osteuropa , Westeuropa , Innovation , Wissenschaftstransfer , Informationsverhalten , Suchtheorie , Vergleich
Keywords (English): Search strategies , open innovation , transition economies , institutional infrastructure for innovation
Abstract: Searching for externally available knowledge has been characterized as a vital part of the innovation process. The availability of such innovation impulses, however, critically depends on the environment a firm is operating in. Little is known on how institutional infrastructures for innovation differ with respect to the munificence in providing innovation impulses. In this paper, we suggest that these differences are particularly pronounced between established market economies and transition economies. We argue that these differences shape a firm’s search pattern and that the search pattern subsequently moderates the relationship between innovation inputs and outputs. Based on a sample of more than 4,500 firms from ten European countries we find that search strategies differ considerably between established market and transition economies. Search in transition economies is characterized by much more variety. However, management capacity in these countries is a particularly scarce resource which is why focused search strategies turn out to be most successful.
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