Knowledge‐based capital in building regional innovation capacity

Abstract

PurposeThe purpose of this paper is to investigate the role and the relevance of knowledge‐based capital as a strategic resource and a source of regional innovation capacity. The paper identifies human, relational, structural and social capital as the four main knowledge‐based categories building the knowledge‐based capital of a region. The role of each knowledge‐based category in determining regional innovation capacity is analyzed. Specifically, the authors discuss the relationships among the knowledge‐based categories and a regional innovation capacity.Design/methodology/approachThe paper is based on an in‐depth literature review of the knowledge management and regional innovation research stream. The fundamental underlying research questions that have driven the research are: “What are the knowledge‐based capital categories affecting a region's innovation capacity?” and “How do knowledge‐based categories influence regional innovation capacity?”. The paper is conceptual in its nature and aims to delineate a theory‐based framework to drive further empirical research.FindingsThe paper first clarifies the concept of knowledge‐based capital and of regional innovation capacity. These are two key concepts for understanding the role and relevance of the knowledge assets bundles in the creation, development and management of innovation capabilities at regional level. Then the paper explores how knowledge‐based components affect the innovation capacity of a region. This is an issue of great relevance for both theory and practice. From the theory point of view it allows the identification of the main factors characterising the links between knowledge assets and innovation capacity, while from a practical point of view it can provide implications for policy makers for the definition of policies oriented towards the development of regional knowledge asset domains to develop regional innovation capacity.Originality/valueThe paper provides an answer to the need to develop a holistic view of the links between a region's knowledge‐based capital and its innovation capacity. Indeed, most of the studies in the literature have analysed the links between isolated knowledge asset categories and innovation capabilities. The paper, on the basis of a clear definition of knowledge‐based capital and innovation capacity, analyses why regional knowledge foundations make differences in the innovation capacity of regions.

A small university and knowledge-based development: a case of Northern Iceland

“…Relational capital and networking denotes the group of knowledge resources relevant to the relationships characterising a regional system (Schiuma and Lerro, 2008). As already noted, universities can change the governance of the region, thus altering the relational capital and increasing local effectiveness and competence (Goldstein and Glaser, 2012).…”

“…More precisely, we will pay special attention to the role of regional universities in enhancing regional innovation dynamism (Schiuma and Lerro, 2008). Goldstein and Glaser (2012, p.158) argue that in the knowledge-based economy "universities have a variety of potential roles for stimulating economic development beyond teaching, research and technology development".…”

“…Structural capital includes intellectual assets owned by stakeholders, and technological infrastructure according to Schiuma and Lerro (2008). Research institutions could be added here, as they augment regional structural capital.…”

“…Cantú et al (2012) introduced a knowledge-developmental model based on a research chair strategy (research groups within universities and research institutions). The most comprehensive model is presented by Schiuma and Lerro (2008) under the title 'Knowledge-based capital in building regional innovation capacity'. They interpret regional knowledgebased capital as: "…any regional resource made of or incorporating knowledge which provides an ability to carry out a process or an activity aimed at creating and/or delivering value" [Schiuma and Lerro, (2008), p.124].…”

“…Titze et al (2012) classify qualification/training, supervision of students, exchange of personnel, and job mobility under the category of human capital. Schiuma and Lerro (2008) look at human capital as explicit and tacit knowledge characterising the actors (individuals and collective actors) within the region. In this context, they mention brain drain and attraction as fundamental factors affecting regional development in the present knowledge economy.…”