Scandinavian Working Papers in Economics

Working Paper Series in Economics and Institutions of Innovation,
Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

No 136: Locational Conditions, Cooperation, and Innovativeness: evidence from research and company spin-offs

Anna Lejpras () and Andreas Stephan ()
Additional contact information
Anna Lejpras: DIW Berlin
Andreas Stephan: CESIS and JIBS

Abstract: This paper has two goals. First, it analyzes the extent to which the innovativeness of spin-offs, either born from a research facility or from another company, is influenced by locational conditions. Second, it provides evidence on how important local cooperation links are in comparison to nonlocal ones. Using a sample of approximately 1,500 East German firms from knowledge-intensive sectors, we estimate a structural equation model applying the partial least squares method. We find that proximity to local research institutes and universities is the most influential factor for the cooperation intensity of spin-offs. Furthermore, the higher the cooperation intensity, the greater the innovativeness of a firm. Moreover, the results indicate that it is not the local but the nonlocal cooperation ties that are more conducive to innovativeness of research spin-offs. The findings also highlight that the innovativeness of research spin-offs with solely local links is strongly depends on support from various authorities and institutions.

Keywords: Research and Company Spin-Offs; Locational Conditions; Cooperation Intensity; Innovativeness; Structural Equation Modeling; Partial Least Squares Approach

JEL-codes: M13; O18

32 pages, September 9, 2008

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