KTH/CESIS Working Paper Series in Economics and Institutions of Innovation
Internal and External Knowledge – Innovation of Export Varieties.
(), Sara Johansson and Tina Wallin
Abstract: Firms in local industries maintain their capability to
generate innovations by simultaneously exploiting internal and external
knowledge resources. The paper introduces the notion variety triplet to
distinguish individual export varieties, where a triplet is a unique
combination of a firm, a product code and a destination country. For each
date the set of variety triplets in each local industry records all
remaining past product innovations. In view of this the paper examines how
internal and external knowledge of local industries influence the
industry’s scope and value of export varieties. The paper contributes to
existing knowledge firstly by introducing variables that measure a local
industry’s access to external supply of knowledge, divided into local and
extra-local supply. Secondly, the paper sheds light on how internal and
external knowledge influence the scope of product innovations in local
industries, with firm-level data from Sweden. Thirdly, the paper compares
the influence of knowledge on the entire set of variety triplets and on a
separate set of recently introduced varieties.
Keywords: Product varieties; innovation; internal knowledge; external knowledge; KIBS; (follow links to similar papers)
JEL-Codes: F12; F14; R12; R32; (follow links to similar papers)
27 pages, January 31, 2013
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