Essential ingredients for radical innovations? The role of (un-)related variety and external linkages in Germany

Kolja Hesse and Dirk Fornahl ()

No 2007, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

Abstract: The role of radical innovations for the economy has received increasing attention by German policy makers. This paper investigates how (un-)related variety and external linkages influence these innovations in German labour market regions. Evidence is found that related and unrelated knowledge capabilities both support the emergence of radical innovations, although strong related capabilities are especially important. External linkages have an inverted u-shape relation to radically new ideas and can act as substitute for missing unrelated competences in a region. The results shed new light on the emergence of radical innovations and thus have interesting scientific and practical implications.

Keywords: Radical innovations; related variety; unrelated variety; external linkages; labour market regions (search for similar items in EconPapers)
JEL-codes: O31 O33 R11 (search for similar items in EconPapers)
Date: 2020-02, Revised 2020-02
New Economics Papers: this item is included in nep-geo, nep-ino, nep-tid and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Journal Article: Essential ingredients for radical innovations? The role of (un‐)related variety and external linkages in Germany (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:egu:wpaper:2007

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