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Geographical proximity and open innovation of SMEs in Cyprus

Geographical proximity and open innovation of SMEs in Cyprus
Geographical proximity and open innovation of SMEs in Cyprus
Open innovation implies that geographical proximity is irrelevant. However, we posit that any potential innovation outcome depends on the spatial constraints on openness. In this paper, we add a geographical proximity dimension to open innovation by analysing how a domestic and international open innovation approach affects innovation outcomes. In particular, we hypothesise that domestic open innovation has positive effects on new-to-the-firm product innovation, due to easily accessible resources. We further posit that, through international open innovation, SMEs can access new and advanced knowledge which is not available locally, leading to more novel innovations. However, we expect that the relationship between openness, both domestic and international, and innovation is conditional on R&D activities. Our empirical analysis based on the Cyprus Community Innovation Survey supports these hypotheses. Our results underline the critical role of the spatial aspect on open innovation in SMEs, something which has remained surprisingly absent from the literature.
0921-898X
Kapetaniou, Chrystalla
67f0d2f2-4735-4474-8713-f7f53baa6c6d
Lee, Soo Hee
88fb0c54-47f2-4d5f-b93e-275b96db858f
Kapetaniou, Chrystalla
67f0d2f2-4735-4474-8713-f7f53baa6c6d
Lee, Soo Hee
88fb0c54-47f2-4d5f-b93e-275b96db858f

Kapetaniou, Chrystalla and Lee, Soo Hee (2018) Geographical proximity and open innovation of SMEs in Cyprus. Small Business Economics, 52 (1). (doi:10.1007/s11187-018-0023-7).

Record type: Article

Abstract

Open innovation implies that geographical proximity is irrelevant. However, we posit that any potential innovation outcome depends on the spatial constraints on openness. In this paper, we add a geographical proximity dimension to open innovation by analysing how a domestic and international open innovation approach affects innovation outcomes. In particular, we hypothesise that domestic open innovation has positive effects on new-to-the-firm product innovation, due to easily accessible resources. We further posit that, through international open innovation, SMEs can access new and advanced knowledge which is not available locally, leading to more novel innovations. However, we expect that the relationship between openness, both domestic and international, and innovation is conditional on R&D activities. Our empirical analysis based on the Cyprus Community Innovation Survey supports these hypotheses. Our results underline the critical role of the spatial aspect on open innovation in SMEs, something which has remained surprisingly absent from the literature.

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Published date: 12 March 2018

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Local EPrints ID: 456494
URI: http://eprints.soton.ac.uk/id/eprint/456494
ISSN: 0921-898X
PURE UUID: aa47033e-e79f-471d-a440-5da716bc3e48

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Date deposited: 03 May 2022 16:57
Last modified: 03 May 2022 16:57

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Author: Soo Hee Lee

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