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Locational Conditions, Cooperation, and Innovativeness: Evidence from Research and Company Spin-offs

Discussion Papers 804, 29 S.

Anna Lejpras, Andreas Stephan


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Published in: Annals of Regional Science 46 (2011) No. 3, 543-575


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.

JEL-Classification: M13;O18;R3
Keywords: Research and Company Spin-Offs, Locational Conditions, Cooperation Intensity, Innovativeness, Structural Equation Modeling, Partial Least Squares Approach
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