The Dynamic Contribution of Innovation Ecosystems to Schumpeterian Firms: A Multilevel Analysis

Abstract

This study investigates how geographical proximity with innovation ecosystems’ agents contribute to Schumpeterian firms’ innovation performance. By adopting the knowledge spillover theory of entrepreneurship (KSTE) perspectives, we propose and test a conceptual model of innovation in Schumpeterian firms using a firm-level dataset that merged information from multiple sources of 3,074 observations during 2002-2014. Our results contribute to the literature by extending three academic discussions: (a) the achievement of Schumpeterian firms’ innovation performance based on geographical approximation with innovation ecosystems’ agents, (b) the role of absorptive capacity of Schumpeterian firms’ in benefiting from external collaborations, and (c) the mechanism how policymakers can promote the improvement of knowledge-intensive capabilities in Schumpeterian firms. Our results have direct implications for innovators, regional and national policymakers.