Spatial Variations in Innovations and Absorptive Capacity (CBR project)

Overview

Aims and objectives

The project, commissioned by the DTI (now BIS) and directed by Michael Kitson, examined whether differences in absorptive capacity at the firm-level are determinants of regional variations in innovation performance. Differences in firms’ absorptive capacity are also due to sectoral and technological specificities. Both firms’ absorptive capacity and sectoral structure differ widely across regions: the analysis focused on the former while controlling for the latter aspect in order to evaluate regional differences in firms’ propensity to innovate.

The empirical analysis was based on the use of two different and complementary firm-level databases covering UK enterprises. First, the recently released UK CIS4 and second, the newly collected Small and Medium-sized Enterprises Survey carried out by the CBR. The use of two data sets allowed for comparisons on a wide range of indicators on firms’ absorptive capacity and for different types of innovation. The CIS4 database provided information on a large sample of firms while the CBR allowed for more comprehensive details on firms’ characteristics in terms of innovative strategies and absorptive capacity. Furthermore, the analysis incorporated complementary evidence based on in-depth case study analysis of thirteen companies included in the CBR database.

Project team

Maria Abreu
Vadim Grinevich
Michael Kitson
Maria Savona

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