The effect of population size and technological collaboration on firms' innovation

Nuria Calvo, Sara Fernández-López, María Jesús Rodríguez-Gulías and David Rodeiro-Pazos

Technological Forecasting and Social Change, 2022, vol. 183, issue C

Abstract: In the current knowledge economy, firms hardly innovate alone; the collaboration with other partners has become crucial for successful innovation. Literature has recently focused on two modes of collaboration: the learning-by-doing, by-using and by-interacting (DUI) and science and technology-based innovation (STI). Nevertheless, collaboration seems to be easier if firms are located in highly populated areas. This paper aims to analyse whether the population size of municipalities where firms are located influences firm innovation either in a direct way or by shaping the effect of the DUI and STI partnerships. Applying panel data methodology to a sample of 3004 Spanish manufacturing firms over the period 2009 to 2016, the results show that innovative performance benefits from STI and DUI innovation modes, especially product innovation. In contrast, location in less populated municipalities seems to have no effect on innovation, regardless of the threshold used to limit the number of inhabitants. Also, weak evidence of the moderating role of the population size on the effect of DUI and STI partnerships on firm innovation is found.

Keywords: Product innovation; Process innovation; Population size; Technological collaboration; DUI learning mode; STI learning mode (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:183:y:2022:i:c:s0040162522004280

DOI: 10.1016/j.techfore.2022.121905

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