Geography Reference
In-Depth Information
4. Among the few contributions reunifying Penrose's view with the MNE theory and
highlighting the importance of external sources of knowledge, see Pitelis (2002a,
2007a).
5. Historical contingency refers to the actual existence of selection mechanisms in socio-
economic processes: change is neither solely based on structural elements subject to
general rules, nor purely driven by random effects. At each point in time in a system's
evolution, a number of paths are theoretically possible, but only a few will be chosen
by the actors because each path must conform to the logic of socio-economic dynamics
(Schwerin and Werker 2003).
6. Teece et al. (1997) specify that
dynamic
refers to the capability to renew competencies to
accomplish the requirements of the markets. It is about innovative responses when time
to market is critical, technological change is rapid, and there is uncertainty with respect
to the pattern of future competition.
Capabilities
emphasize the role of strategic man-
agement in adapting, integrating and reconfiguring internal and external skills, specific
assets and functional competencies to match the requirements of a changing economic
environment.
7. See Section 4.6 below for some case studies on capabilities of MNEs and regions in dif-
ferent economic development contexts.
8. Incidentally, the confirmation of the Gibrat's law, which is valid if we remove the
effects of excess mortality among small firms and the excess variability of growth of the
smaller firms that survive, suggests that there are some problems for capabilities-based
theories, because the independence of growth and size implies that capabilities are not
so persistent after all. Turbulence as an emergent property dominates (Dosi et al. 1997).
However, whilst more empirical work is needed on capability persistence in MNEs vis-
à-vis other firms, the concept of interactive dynamic capabilities can actually be useful
in explaining invariance in the larger firms.
9.
The emergence of new technological paradigms (Schumpeter 1939) refers to the rise of
major related and pervasive radical innovations that drive the dynamics of the economy
as a whole in any historical time (Freeman et al. 1982).
10.
Pavitt himself predicted the shrinking of the 'supplier dominated' category on the basis
of a tendency for such firms to adopt 'scale intensive' or 'information intensive' strate-
gies (Pavitt et al. 1989).
11.
See, among others, Rosenberg (1976), Freeman et al. (1982), and Freeman (1986) on the
demand-pull and supply-push debate.
12.
The concept of 'development blocks' refers to synergistic clusters of firms and technolo-
gies within an industry (or a group of industries) giving rise to new business opportuni-
ties. At the core of a development block there is a core technology, i.e. technological
paradigm (see Dahmén 1988; Dosi 1988).
13.
Other approaches have addressed localized structural and institutional factors shaping
the innovation capacity of specific geographical contexts. Among the many sub-
national typologies considered by the literature we find, for instance, milieux innova-
tors (Aydalot 1986), new industrial districts (Becattini 1987), technological districts
(Markusen 1985, 1996; Storper 1992), and learning regions (Asheim 1995; Florida 1995;
Morgan 1997).
14.
Embeddedness refers to a set of characteristics appropriate for systemic innovation and
reflecting the extent to which a social community operates in terms of shared norms of
cooperation, trustful interaction and untraded interdependencies (Cooke 2001; Fritsch
2001; see also Dosi 1988).
15.
Exceptions in looking at regional and local systems of innovation from a historical
perspective are, among others, Rantisi (2002), Schwerin (2004), Boschma and Wenting
(2007).
16.
Physical technologies entail specific routines to deal with physical artefacts, and spe-
cific knowledge that can be more easily understood, identified and analysed. On the
other hand, social technologies entail specific routines rather difficult to understand,
identify and analyse, although specific knowledge is still required (i.e. sociology, social
