Search results for "Industry specialization"

Zooming into firm’s location, capabilities and innovation performance: does agglomeration foster incremental or radical innovation?

2022

[EN] This study answers the question on whether areas of agglomeration or high industry specialization constitute supportive prone-to-innovation environments for the generation of radical innovation. By drawing on the CIS distinction between incremental vs radical innovation, we disentangle the effect of industry specialization on the occurrence of radical innovations, a phenomenon mostly overlooked. By analysing a large dataset of 3,602 firms from CIS and other geographic datasets, results show that a firm's location in high industry specialization areas primarily trims incremental but not radical innovation. Firms' internal knowledge bases do matter more for radical innovation to occur, r…