Capabilities for regional innovation in a globalizing world

-In their innovation processes, Norwegian firms collaborate most with local partners. However, this study documents that the innovation activity in firms increases with the number of different partners (suppliers, customers, competitors, universities, research institutes, consultants)whereas regional collaboration has negligible effect. These correlations are documented in two survey from 2010 and 2013, respectively. Participation in international clusters increases the innovation capacity in firms more than participation in local clusters. Managerial attitudes have an impact on whom the firm collaborates with in their innovation processes. More open-minded managers prefer international partners. Both formal company networks and informal personal networks have positive impact on innovation, independent of each other. For both types of networks, the regional and national dimension is used the most, but international networks have greater impact on the innovation rate. This indicates that international networks include yet more types of linkages. Firms with trustful managers in regions with high R&D investments, are more inclined to collaborate regionally. More international collaboration is stimulated by open-minded managers in regions with a higher educational level.

The proposal "Capabilities for regional innovation in a globalizing world" addresses the priority area 4.1.1 "Innovation and internationalization". The application is based on the premise that regional capabilities for innovation is a necessary response t o the challenges of globalization: more liberalized economies, far cheaper and accessible communications, and limited possibilities for firms and regions to hold on to comparative advantages. The project intends to analyze the effects on firm and regional innovation capabilities of regional, national and international knowledge flows, integrated/disintegrated values chains and human capital mobility within and between regions. We will also examine how this affects the economic performance of firms and reg ions. The project is furthermore a response to work program's underlining of a need for improved documentation of how innovation unfolds in the Norwegian economy and a better understanding of how innovation processes, knowledge distribution and learning actually take place. As a response we offer a broad definition of innovation and technologies, constructing and utilizing a unique data set combining employee, firm-level and regional-level data from Statistics Norway registers. Existing datasets are supp lemented by a tailor-made survey of Norwegian regions to complete the public registers with data on firm and regional culture. This is a novel approach to the study of innovation in Norway. This data set will facilitate both cross-sectional and longitudin al studies using econometric and other quantitative methods. We will complement these analyses with deep case studies of innovation processes in established companies as well as start-ups. The studies will be concluded with actionable policy recommendatio ns.