Enterprise R&D investments, product innovation and the regional industry structure

Jarle Aarstad and Olav Andreas Kvitastein

Regional Studies, 2020, vol. 54, issue 3, 366-376

Abstract: This paper studies if the context of the regional industry structure moderates the link between enterprise research and development (R&D) investments and product innovation performance. Cross-level analyses from Norway show that the regional industry structure moderates the link, as the innovation performance from enterprise R&D investments is stronger in regions with a specialized structure than in regions with a diversified structure. The paper accordingly demonstrates that the regional industry structure influences the conversion of enterprise R&D resources into innovative products or services. In particular, it shows that a specialized (diversified) regional industry structure is favourable (unfavourable) for enterprise R&D investments concerning product innovation performance.

Date: 2020
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DOI: 10.1080/00343404.2019.1624712

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