Firms Navigating Through Innovation Spaces: A Conceptualization of How Firms Search and Perceive Technological, Market and Productive Opportunities Globally

Abstract

The main contribution of this paper is a theory-based conceptual framework of innovation spaces, and how firms must navigate through them to innovate. The concept of innovation systems -at the regional, sectoral and national levels -have been highly influential. Previous literature developing the concept of innovation systems has stressed the importance of institutions, networks and knowledge bases at the regional, sectoral and national levels. This paper primarily draws upon an evolutionary and Schumpeterian economics perspective, in the following three senses. The conceptualization of 'innnovation spaces' focuses upon how and why firm search for innovations is influenced the opportunities within certain geographical contexts. This means that the firm create opportunities and can span different context, but they are influence by the context in term of the access, flow and co-evolution of ideas, resources, technology, people and knowledge, which help stimulate business innovation in terms of products, process and services. The paper concludes with an agenda for future research and especially the need to focus on globalization as a process of intensifying linkages across the globe.

Innovation search: the role of innovation intermediaries in the search process

“…Besides having described search mechanism and search paths, Lopez‐Vega et al (2016) point towards the need for further examination of their use, rate and direction, including models used by innovation intermediaries or third‐party platforms. Although some search processes are reported by previous literature, as mentioned above, McKelvey (2016) points to gaps to be addressed in the description of firm search and problem‐solving when looking at how firms span the industry and regional and national context for innovation solutions and partners. Our study seeks to enlighten these issues, by conceptualising ‘innovation search’ and differentiating its processes as well as understanding the role of intermediaries on different stages and methods of innovation search.…”

“…In an increasingly open innovation environment, where external solutions and collaboration are becoming more common and necessary, finding the right innovation solution or partner has become ever more important (Lopez‐Vega et al, 2016). However, innovation searching is a difficult and complex activity (McKelvey, 2016), with decreasing and undesirable returns to technological search often occurring, as the set of available combinations is exhausted (Kim and Kogut, 1996; Fleming, 2001). There is, therefore, the potential of ‘oversearch’ by firms (Laursen and Salter, 2004), which could be both costly and still sub‐optimal in outcome.…”

“…Recent literature has raised issues concerning the conceptualisation and the complexity of firm‐level search activity. Thus, McKelvey (2016, p. 796) has highlighted ‘a high level of abstraction’ relating to the various models of the nature and function of what firms do as they search under conditions of uncertainty, seeking to discovery new sources of value, and pointing out the need for more direct empirical studies about the search processes. Lopez‐Vega et al (2016) also stress that empirical research on open innovation intermediaries and their role in search activities are still scarce, whilst Mina et al (2014) stress the need for an in‐depth understanding of how innovation intermediaries operate in these open innovation regimes.…”

From knowledge to business ecosystems: emergence of an entrepreneurial activity during knowledge replication

“…This knowledge filter can take the form of entrepreneurial activity such as new firm creation (Braunerhjelm et al, 2010) 1. There is a huge debate in the entrepreneurship literature over whether opportunities are discovered or created (Alvarez et al, 2013;McKelvey, 2016;Winter, 2016). One thing that has emerged these deliberations is that "entrepreneurial origins matter" (Agarwal andShah, 2014: 1129), as does the process of "having been and becoming entrepreneurs" (McKevley, 2016: 787).…”

Introduction to Innovative Capabilities and the Globalization of Chinese Firms

“…We propose to conceptualize a knowledge-intensive innovative ecosystem as three-way interactions between firms, industrial dynamics and innovation systems. This broader theoretical framework builds explicitly upon McKelvey and Bagchi-Sen (2015) and McKelvey (2016). The purpose of this framework for this book is to help us identify a range of relevant factors which explain how Chinese companies can learn to innovate and compete on the global market.…”