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

Justin Doran, Declan Jordan () and Eoin O'Leary

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Innovation; SMEs; Spatial Proximity; External Interaction (search for similar items in EconPapers)
JEL-codes: O31 R10 R11 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (16)

Published in Entrepreneurship & Regional Development: An International Journal 7-8.24(2012): pp. 705-727

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Journal Article: The effects of the frequency of spatially proximate and distant interaction on innovation by Irish SMEs (2012)
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