Papers in Innovation Studies, CIRCLE, Center for Innovation, Research and Competences in the Learning Economy, Lund University
Does institutional diversity promote global innovation networks?
() and Cristina Chaminade
Abstract: Recent literature stresses the increasing importance of
global innovation networks as a new mechanism to organize innovation across
geographical space. This paper investigates if institutional diversity,
defined at the level of the firm, influences firms’ engagement in GINs.
Institutional diversity provides knowledge about the institutional context
of other countries, increased capabilities to deal with institutional
differences, larger social networks to build GINs and a broader search
space. Further, the paper examines how the absorptive capacity of firms
mediates the relationship between institutional diversity and global
innovation networks. The empirical study is based on a linked
employee-employer dataset with 8,573 innovative firms in Sweden. It
provides strong evidence that the engagement in GINs is positively related
to institutional diversity and that the relation is particularly strong for
global innovation networks, depending, however, on the absorptive capacity
Keywords: global innovation networks; institutions; institutional diversity; absorptive capacity; open innovation; (follow links to similar papers)
JEL-Codes: D02; F20; O30; (follow links to similar papers)
32 pages, February 15, 2016
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