Knowledge Flows and Innovative Performances of NTBFs in Gauteng, South Africa: An Attempt to Explain Mixed Findings in Science Park Research
Science parks are often established to drive regional
economic growth, especially in countries with emerging economies.
However, mixed findings regarding the performances of science park
firms are found in the literature. This study tries to explain these
mixed findings by taking a relational approach and exploring
(un)intended knowledge transfers between new technology-based
firms (NTBFs) in the emerging South African economy. Moreover,
the innovation outcomes of these NTBFs are examined by using a
multi-dimensional construct. Results show that science park location
plays a significant role in explaining innovative sales, but is
insignificant when a different indicator of innovation outcomes is
used. Furthermore, only for innovations that are new to the firms,
both science park location and intended knowledge transfer via
informal business relationships have a positive impact; whereas
social relationships have a negative impact.
[1] M. McAdam, and R. McAdam, "High tech start-ups in University
Science Park incubators: The relationship between the start-up-s
lifecycle progression and the use of the incubator-s resources,"
Technovation, vol. 28, pp. 277-290, 2008.
[2] H. Etzkowitz, and L. Leydesdorff, "The dynamics of innovation: from
National Systems and ÔÇÿmode 2- to a Triple Helix of university-industrygovernment
relations," Research Policy, vol. 29, pp. 109-123, 2000.
[3] S. Chen, and C.J. Choi, "Creating a knowledge-based city: the example
of Hsinchu Science Park," Journal of Knowledge management, vol. 8,
no. 5, pp. 73-82, 2004.
[4] D. Massey, P. Quintas, and D. Wield, High Tech Fantasies: Science
Parks in Society. Oxford: Routhledge, 1992.
[5] Y.L. Bakouros, D.C. Mardas, and N.C. Varsakelis, "Science park, a high
tech fantasy?: an analysis of the science parks of Greece," Technovation,
vol. 22, pp. 123-128, 2002.
[6] Westhead, P., 1997. "R&D ÔÇÿinputs- and ÔÇÿoutputs- of technology-based
firms located on and off Science Parks", R&D Management, vol. 27, no.
1, pp.45-62.
[7] P. Lindelöf, and H. Löfsten, "Proximity as a resource base for
competitive advantage: university-industry links for technology
transfer," Journal of Technology Transfer, vol. 29, pp. 311-326, 2004.
[8] Felsenstein, D. 1994. "University-related science parks - ÔÇÿseedbeds- or
ÔÇÿenclaves- of innovation?", Technovation, vol. 14, no. 2, pp. 93 - 110.
[9] C. Malairaja, and G. Zawdie, "Science parks and university-industry
collaboration in Malaysia," Technology Analysis and Strategic
Management, vol. 20, no. 6, pp. 727-739, 2008.
[10] H. Brown, Knowledge and Innovation: A Comparative Study of the USA,
the UK and Japan. New York: Routledge, 2008.
[11] D.S. Siegel, P. Westhead, and M. Wright, "Assessing the impact of
university science parks on research productivity: exploratory firm-level
evidence from the United Kingdom," International Journal of Industrial
Organization, vol. 21, pp. 1357-1369, 2003.
[12] I.S. Akçomak, and E. Taymaz, "Assessing the effectiveness of
incubators: The case of turkey". ERC Working Papers 0412, ERC -
Economic Research Center, Middle East Technical University, 2004.
[13] E.G.T. Green E.G.T., J. Deschamps, and D. Páez, "Variation of
individualism and collectivism within and between 20 countries: A
typological analysis," Journal of Cross-cultural Psychology, vol. 36, no.
3, pp. 321 - 339, 2005.
[14] P. Westhead, and M. Cowling, "Employment change in independent
owner-managed high-technology firms in Great Britain," Small Business
Economics, vol. 7, pp. 111-140, 1995.
[15] M.G. Colombo, and M. Delmastro, "How effective are technology
incubators? Evidence from Italy," Research Policy, vol. 31, pp. 1103-
1122, 2002.
[16] R. Ferguson, and C. Olofsson, "Science parks and the development of
NTBFs - Location, survival and growth," Journal of Technology
Transfer, vol. 29, pp. 5-17, 2004.
[17] H. Löfsten, and P. Lindelöf, "Science Parks and the growth of new
technology-based firms - academic-industry links, innovation and
markets," Research Policy, vol. 31, pp. 859-876, 2002.
[18] P. Dettwiler, and P. Lindelöf, H. Löfsten, "Utility of location: A
comparative survey between small new technology-based firms located
on and off Science Parks - Implications for facilities management,"
Technovation, vol. 26, pp. 506-517, 2006.
[19] C. Yang, K. Motohashi, and J. Chen, "Are new technology-based firms
located on science parks really more innovative? Evidence from
Taiwan," Research Policy, vol. 38, pp. 77-85, 2009.
[20] P. Lindelöf, and H. Löfsten, "Science Park location and new technologybased
firms in Sweden - Implications for strategy and performance",
Small Business Economics, vol. 20, pp. 245-258, 2003.
[21] J.P. Murmann, J.P., Knowledge and Competitive Advantage. UK:
Cambridge University Press, 2003.
[22] S. Thornhill, "Knowledge, innovation and firm performance in high- and
low-technology regimes," Journal of Business Venturing, vol. 21, pp.
687-703, 2006.
[23] K. Ichijo, and I. Nonaka, "Introduction: Knowledge as competitive
advantage in the age of increasing globalization," in Knowledge
Creation and Management: New Challenges for Managers, K. Ichijo &
I. Nonaka, Ed. New York: Oxford University Press, 2007, pp. 3-10.
[24] M. H. Fallah, and S. Ibrahim, "Knowledge spillover and innovation in
technological clusters," in International Association for Management of
Technology 13th International Conference on Management of
Technology, Washington D.G., April, 2004, pp.
[25] L.A.G. Oerlemans, L.A.G., and M.T.H. Meeus, "Do organizational and
spatial proximity impact on firm performance?," Regional Studies, vol.
39, pp. 89-104, 2005.
[26] H. Ernst, "Patent applications and subsequent changes of performance:
evidence from time-series cross-section analyses on the firm level,"
Research Policy, vol. 30, pp. 143-157, 2001.
[27] L. Bottazzi, and P. Giovanni, "Innovation and spillovers in regions:
evidence from the European patent data", European Economic Review,
vol. 47, pp. 687-710, 2003.
[28] G.N. Stock, N.P. Greis and W.A. Fischer, "Firm size and dynamic
technological innovation," Technovation, pp. 537-549, 2002.
[29] R. Du, and S. Ai, "Cross-organizational knowledge acquisition through
flexible hiring and joint R&D: Insights from a survey in China," Expert
Systems with Applications, vol. 35, no. 1-2, pp. 434-441, 2008.
[30] G. Mentzas, D. Apostolou, K. Kafentzis, and P. Georgolios, "Interorganizational
networks for knowledge sharing and trading,"
Information Technology and Management, vol. 7, no. 4, pp. 259-276,
2006.
[31] G. Boyce, "Networks, tacit knowledge, and innovation" in Globalization
and partnerships, J. Aurifeille et al., Ed. New York: Nova Publishers,
2007, pp. 47-59.
[32] B. Gay, and B. Dousset, "Innovation and network structural dynamics:
Study of the alliance network of a major sector of the biotechnology
industry," Research Policy, vol. 34, pp. 1457-1475, 2005.
[33] R.A. Boschma, and A.L.J. ter Wal, "Knowledge networks and
innovative performance in an industrial district: The case of a footwear
district in the South of Italy," Industry and Innovation, vol. 14, no. 2, pp.
177-199, 2007.
[34] B.C. Erbas, A. Fikirkoca and A. Tuzcu, "Innovativeness of
manufacturing small and medium size enterprises in Turkish Regional
Innovation System", in RSA Annual International Conference 2008,
Prague, 2008.
[35] J.B. Barney, "Firm resources and sustained competitive advantage,"
Advances in Strategic Management, vol. 17, pp. 203-227, 2000.
[36] P. Almeida, and B. Kogut, "Localisation of knowledge and the mobility
of engineers in regional networks," Management Science, vol. 45, no. 7,
pp. 905-917, 1999.
[37] A.B. Jaffe, M. Trajtenberg, and M.R. Fogarty, "Knowledge spillovers
and patent citations: Evidence from a survey of inventors," American
Economic Review, vol. 9, no. 2, pp. 215-19, 2000.
[38] T. Mukoyama, "Innovation, imitation, and growth with cumulative
technology," Journal of Monetary Economics, vol. 50, no. 2, pp. 361-
380, 2003.
[39] J. Lorentzen, "Learning by firms: The black box of South Africa-s
innovation systems", Science and Public Policy, vol. 36, no. 1, pp. 33 -
45, 2009.
[40] R. Rothwell, "The role of small firms in the emergence of new
technologies," Omega, vol. 12, no. 1, pp. 19-29, 1984.
[41] H. Bresman, J.M. Birkinshaw, and R. Nobel, "Knowledge transfer in
international acquisitions," Journal of International Business Studies,
vol. 30, no. 3, pp. 439-462, 1999.
[42] R. Agarwal, and M. Gort, "Firm and Product Life Cycles and Firm
Survival," The American Economic Review, vol. 92, no. 2, pp. 184-190,
2002.
[43] S.T. Cavusgil, R.J. Calantone, and Y. Zhao, "Tacit knowledge transfer
and firm innovation capability," Journal of Business & Industrial
Marketing, vol. 18, no. 1, pp. 6-21, 2003.
[44] IASP, Retrived 14/11/2007 World Wide Web, http://www.iasp.ws
[45] N. Fukugawa, "Science parks in Japan and their value-added
contributions to new technology-based firms," International Journal of
Industrial Organization, vol. 24, no. 2, pp. 381-400, 2006.
[46] E. Otte, and R. Rousseau, "Social network analysis: a powerful strategy,
also for the information sciences," Journal of Information Science,
vol.28, pp. 443-455, 2002.
[47] J.R.L. Howells, "Tacit Knowledge, Innovation and Economic
Geography," Urban Studies, vol. 39, no. 5, pp.871 - 884, 2002.
[48] B. Cassiman, M. G. Colombo, P. Garrone, and R. de Veugelers, "The
impact of M&A on the R&D process: An empirical analysis of the role
of technological- and market-relatedness," Research Policy, vol. 34, pp.
195-220, 2005.
[49] M.S. Dahl, and C. ├ÿ.R. Pedersen, "Knowledge flows through informal
contacts in industrial clusters: myth or reality", Research Policy, vol. 33,
pp. 1673-1686, 2004.
[50] E. Autio, "ÔÇÿAtomistic- and ÔÇÿsystemic- approaches to research on new,
technology-based firms: A literature study," Small Business Economics,
vol. 9, no. 3, pp. 195-209, 1997.
[51] L. Aaboen, P. Lindelöf, and H. Löfsten, "Incubator performance: an
efficiency frontier analysis," International Journal of Business
Innovation and Research, vol. 2, no. 4, pp. 354-380, 2008.
[52] L.A.G. Oerlemans, M.W. Pretorius, A.J. Buys, and G. Rooks. Industrial
innovation in South Africa, 1998-2000. Pretoria: University of Pretoria,
2004.
[1] M. McAdam, and R. McAdam, "High tech start-ups in University
Science Park incubators: The relationship between the start-up-s
lifecycle progression and the use of the incubator-s resources,"
Technovation, vol. 28, pp. 277-290, 2008.
[2] H. Etzkowitz, and L. Leydesdorff, "The dynamics of innovation: from
National Systems and ÔÇÿmode 2- to a Triple Helix of university-industrygovernment
relations," Research Policy, vol. 29, pp. 109-123, 2000.
[3] S. Chen, and C.J. Choi, "Creating a knowledge-based city: the example
of Hsinchu Science Park," Journal of Knowledge management, vol. 8,
no. 5, pp. 73-82, 2004.
[4] D. Massey, P. Quintas, and D. Wield, High Tech Fantasies: Science
Parks in Society. Oxford: Routhledge, 1992.
[5] Y.L. Bakouros, D.C. Mardas, and N.C. Varsakelis, "Science park, a high
tech fantasy?: an analysis of the science parks of Greece," Technovation,
vol. 22, pp. 123-128, 2002.
[6] Westhead, P., 1997. "R&D ÔÇÿinputs- and ÔÇÿoutputs- of technology-based
firms located on and off Science Parks", R&D Management, vol. 27, no.
1, pp.45-62.
[7] P. Lindelöf, and H. Löfsten, "Proximity as a resource base for
competitive advantage: university-industry links for technology
transfer," Journal of Technology Transfer, vol. 29, pp. 311-326, 2004.
[8] Felsenstein, D. 1994. "University-related science parks - ÔÇÿseedbeds- or
ÔÇÿenclaves- of innovation?", Technovation, vol. 14, no. 2, pp. 93 - 110.
[9] C. Malairaja, and G. Zawdie, "Science parks and university-industry
collaboration in Malaysia," Technology Analysis and Strategic
Management, vol. 20, no. 6, pp. 727-739, 2008.
[10] H. Brown, Knowledge and Innovation: A Comparative Study of the USA,
the UK and Japan. New York: Routledge, 2008.
[11] D.S. Siegel, P. Westhead, and M. Wright, "Assessing the impact of
university science parks on research productivity: exploratory firm-level
evidence from the United Kingdom," International Journal of Industrial
Organization, vol. 21, pp. 1357-1369, 2003.
[12] I.S. Akçomak, and E. Taymaz, "Assessing the effectiveness of
incubators: The case of turkey". ERC Working Papers 0412, ERC -
Economic Research Center, Middle East Technical University, 2004.
[13] E.G.T. Green E.G.T., J. Deschamps, and D. Páez, "Variation of
individualism and collectivism within and between 20 countries: A
typological analysis," Journal of Cross-cultural Psychology, vol. 36, no.
3, pp. 321 - 339, 2005.
[14] P. Westhead, and M. Cowling, "Employment change in independent
owner-managed high-technology firms in Great Britain," Small Business
Economics, vol. 7, pp. 111-140, 1995.
[15] M.G. Colombo, and M. Delmastro, "How effective are technology
incubators? Evidence from Italy," Research Policy, vol. 31, pp. 1103-
1122, 2002.
[16] R. Ferguson, and C. Olofsson, "Science parks and the development of
NTBFs - Location, survival and growth," Journal of Technology
Transfer, vol. 29, pp. 5-17, 2004.
[17] H. Löfsten, and P. Lindelöf, "Science Parks and the growth of new
technology-based firms - academic-industry links, innovation and
markets," Research Policy, vol. 31, pp. 859-876, 2002.
[18] P. Dettwiler, and P. Lindelöf, H. Löfsten, "Utility of location: A
comparative survey between small new technology-based firms located
on and off Science Parks - Implications for facilities management,"
Technovation, vol. 26, pp. 506-517, 2006.
[19] C. Yang, K. Motohashi, and J. Chen, "Are new technology-based firms
located on science parks really more innovative? Evidence from
Taiwan," Research Policy, vol. 38, pp. 77-85, 2009.
[20] P. Lindelöf, and H. Löfsten, "Science Park location and new technologybased
firms in Sweden - Implications for strategy and performance",
Small Business Economics, vol. 20, pp. 245-258, 2003.
[21] J.P. Murmann, J.P., Knowledge and Competitive Advantage. UK:
Cambridge University Press, 2003.
[22] S. Thornhill, "Knowledge, innovation and firm performance in high- and
low-technology regimes," Journal of Business Venturing, vol. 21, pp.
687-703, 2006.
[23] K. Ichijo, and I. Nonaka, "Introduction: Knowledge as competitive
advantage in the age of increasing globalization," in Knowledge
Creation and Management: New Challenges for Managers, K. Ichijo &
I. Nonaka, Ed. New York: Oxford University Press, 2007, pp. 3-10.
[24] M. H. Fallah, and S. Ibrahim, "Knowledge spillover and innovation in
technological clusters," in International Association for Management of
Technology 13th International Conference on Management of
Technology, Washington D.G., April, 2004, pp.
[25] L.A.G. Oerlemans, L.A.G., and M.T.H. Meeus, "Do organizational and
spatial proximity impact on firm performance?," Regional Studies, vol.
39, pp. 89-104, 2005.
[26] H. Ernst, "Patent applications and subsequent changes of performance:
evidence from time-series cross-section analyses on the firm level,"
Research Policy, vol. 30, pp. 143-157, 2001.
[27] L. Bottazzi, and P. Giovanni, "Innovation and spillovers in regions:
evidence from the European patent data", European Economic Review,
vol. 47, pp. 687-710, 2003.
[28] G.N. Stock, N.P. Greis and W.A. Fischer, "Firm size and dynamic
technological innovation," Technovation, pp. 537-549, 2002.
[29] R. Du, and S. Ai, "Cross-organizational knowledge acquisition through
flexible hiring and joint R&D: Insights from a survey in China," Expert
Systems with Applications, vol. 35, no. 1-2, pp. 434-441, 2008.
[30] G. Mentzas, D. Apostolou, K. Kafentzis, and P. Georgolios, "Interorganizational
networks for knowledge sharing and trading,"
Information Technology and Management, vol. 7, no. 4, pp. 259-276,
2006.
[31] G. Boyce, "Networks, tacit knowledge, and innovation" in Globalization
and partnerships, J. Aurifeille et al., Ed. New York: Nova Publishers,
2007, pp. 47-59.
[32] B. Gay, and B. Dousset, "Innovation and network structural dynamics:
Study of the alliance network of a major sector of the biotechnology
industry," Research Policy, vol. 34, pp. 1457-1475, 2005.
[33] R.A. Boschma, and A.L.J. ter Wal, "Knowledge networks and
innovative performance in an industrial district: The case of a footwear
district in the South of Italy," Industry and Innovation, vol. 14, no. 2, pp.
177-199, 2007.
[34] B.C. Erbas, A. Fikirkoca and A. Tuzcu, "Innovativeness of
manufacturing small and medium size enterprises in Turkish Regional
Innovation System", in RSA Annual International Conference 2008,
Prague, 2008.
[35] J.B. Barney, "Firm resources and sustained competitive advantage,"
Advances in Strategic Management, vol. 17, pp. 203-227, 2000.
[36] P. Almeida, and B. Kogut, "Localisation of knowledge and the mobility
of engineers in regional networks," Management Science, vol. 45, no. 7,
pp. 905-917, 1999.
[37] A.B. Jaffe, M. Trajtenberg, and M.R. Fogarty, "Knowledge spillovers
and patent citations: Evidence from a survey of inventors," American
Economic Review, vol. 9, no. 2, pp. 215-19, 2000.
[38] T. Mukoyama, "Innovation, imitation, and growth with cumulative
technology," Journal of Monetary Economics, vol. 50, no. 2, pp. 361-
380, 2003.
[39] J. Lorentzen, "Learning by firms: The black box of South Africa-s
innovation systems", Science and Public Policy, vol. 36, no. 1, pp. 33 -
45, 2009.
[40] R. Rothwell, "The role of small firms in the emergence of new
technologies," Omega, vol. 12, no. 1, pp. 19-29, 1984.
[41] H. Bresman, J.M. Birkinshaw, and R. Nobel, "Knowledge transfer in
international acquisitions," Journal of International Business Studies,
vol. 30, no. 3, pp. 439-462, 1999.
[42] R. Agarwal, and M. Gort, "Firm and Product Life Cycles and Firm
Survival," The American Economic Review, vol. 92, no. 2, pp. 184-190,
2002.
[43] S.T. Cavusgil, R.J. Calantone, and Y. Zhao, "Tacit knowledge transfer
and firm innovation capability," Journal of Business & Industrial
Marketing, vol. 18, no. 1, pp. 6-21, 2003.
[44] IASP, Retrived 14/11/2007 World Wide Web, http://www.iasp.ws
[45] N. Fukugawa, "Science parks in Japan and their value-added
contributions to new technology-based firms," International Journal of
Industrial Organization, vol. 24, no. 2, pp. 381-400, 2006.
[46] E. Otte, and R. Rousseau, "Social network analysis: a powerful strategy,
also for the information sciences," Journal of Information Science,
vol.28, pp. 443-455, 2002.
[47] J.R.L. Howells, "Tacit Knowledge, Innovation and Economic
Geography," Urban Studies, vol. 39, no. 5, pp.871 - 884, 2002.
[48] B. Cassiman, M. G. Colombo, P. Garrone, and R. de Veugelers, "The
impact of M&A on the R&D process: An empirical analysis of the role
of technological- and market-relatedness," Research Policy, vol. 34, pp.
195-220, 2005.
[49] M.S. Dahl, and C. ├ÿ.R. Pedersen, "Knowledge flows through informal
contacts in industrial clusters: myth or reality", Research Policy, vol. 33,
pp. 1673-1686, 2004.
[50] E. Autio, "ÔÇÿAtomistic- and ÔÇÿsystemic- approaches to research on new,
technology-based firms: A literature study," Small Business Economics,
vol. 9, no. 3, pp. 195-209, 1997.
[51] L. Aaboen, P. Lindelöf, and H. Löfsten, "Incubator performance: an
efficiency frontier analysis," International Journal of Business
Innovation and Research, vol. 2, no. 4, pp. 354-380, 2008.
[52] L.A.G. Oerlemans, M.W. Pretorius, A.J. Buys, and G. Rooks. Industrial
innovation in South Africa, 1998-2000. Pretoria: University of Pretoria,
2004.
@article{"International Journal of Business, Human and Social Sciences:62158", author = "Kai-Ying A. Chan and Leon A.G. Oerlemans and Marthinus W. Pretorius", title = "Knowledge Flows and Innovative Performances of NTBFs in Gauteng, South Africa: An Attempt to Explain Mixed Findings in Science Park Research", abstract = "Science parks are often established to drive regional
economic growth, especially in countries with emerging economies.
However, mixed findings regarding the performances of science park
firms are found in the literature. This study tries to explain these
mixed findings by taking a relational approach and exploring
(un)intended knowledge transfers between new technology-based
firms (NTBFs) in the emerging South African economy. Moreover,
the innovation outcomes of these NTBFs are examined by using a
multi-dimensional construct. Results show that science park location
plays a significant role in explaining innovative sales, but is
insignificant when a different indicator of innovation outcomes is
used. Furthermore, only for innovations that are new to the firms,
both science park location and intended knowledge transfer via
informal business relationships have a positive impact; whereas
social relationships have a negative impact.", keywords = "knowledge flows, innovative performances, science parks, new technology-based firms", volume = "4", number = "6", pages = "1392-15", }
