Knowledge spillovers and absorptive capacity - institutional evidence from the 'German Mittelstand'

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Recent extensions to the knowledge spillover theory of entrepreneurship (KSTE) show that the successful commercialization of new knowledge by incumbents depends on their absorptive capacities. For policy-makers focusing on increasing incumbents' innovative performance, the systematic reduction of knowledge filter through improved absorptive capacities thus becomes a crucial goal. While the general working mechanisms of knowledge filter have been analyzed within the KSTE framework, few institutional solutions to increase absorptive capacities have been put forth. This study provides an initial case study explaining a specific institutional framework fostering the systematic penetration of knowledge filters by incumbent firms in the case of German SMEs. Using a set of 177 in-depth interviews with firm representatives, the system of interrelated organizations, institutional arrangements, shared values and economic incentives associated with the institutional structures for knowledge spillovers for German SMEs are described. I identify institutional characteristics connected to the dual system of vocational training, regulatory measures and economic incentives mutually enforcing and fostering broad knowledge spillovers. This exploratory approach enables deriving hypotheses for the further study of knowledge filters as well as policy implications for the design of institutions increasing incumbents' absorptive capacities.

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• Language: Englisch

References and Relationships

• Bibliographic citation: Series: cege Discussion Papers ; No. 320

Classification and Topics

• Classification: Wirtschaft ; Firm Behavior: Theory ; Asymmetric and Private Information; Mechanism Design ; Public Goods ; Regulated Industries and Administrative Law ; Transactional Relationships; Contracts and Reputation; Networks
• Subject: entrepreneurship ; knowledge filter ; knowledge spillover theory of entrepreneurship ; networks ; small and medium enterprises

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Proeger, Till
• Event: Veröffentlichung
• (who): University of Göttingen, Center for European, Governance and Economic Development Research (cege)
• (where): Göttingen
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/171725