Philip Cooke and Kevin Morgan
- Published in print:
- 1998
- Published Online:
- October 2011
- ISBN:
- 9780198290186
- eISBN:
- 9780191684784
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198290186.003.0002
- Subject:
- Business and Management, Innovation, Political Economy
The conception of innovation is at one with the theoretical tradition of evolutionary political economy which informs our work. Unlike the more static and equilibrium-oriented approach of ...
More
The conception of innovation is at one with the theoretical tradition of evolutionary political economy which informs our work. Unlike the more static and equilibrium-oriented approach of neoclassical economic theory, evolutionary political economy is concerned not with a supposedly optimal allocation of resources at a given point in time but with how firms and industries mobilize, deploy, and develop their resources over time. The aim of this chapter is to elaborate on these theoretical insights by focusing on some key aspects of the innovation process. This chapter argues that innovation needs to be recognized for what it really is, namely a collective and iterative endeavour rather than an act of heroic individualism, a point illustrated by reference to the interactive model of innovation. To develop this argument, three institutional ‘carriers’ of innovation are examined — firms, states, and systems — where the capacity to promote associational behaviour is one of the most important ingredients in the recipe of a successful corporate strategy and more effective public policy. Finally, this chapter identifies some of the intangible factors — like trust, voice, and loyalty — which underpin associational action in firms, countries, and regions.Less
The conception of innovation is at one with the theoretical tradition of evolutionary political economy which informs our work. Unlike the more static and equilibrium-oriented approach of neoclassical economic theory, evolutionary political economy is concerned not with a supposedly optimal allocation of resources at a given point in time but with how firms and industries mobilize, deploy, and develop their resources over time. The aim of this chapter is to elaborate on these theoretical insights by focusing on some key aspects of the innovation process. This chapter argues that innovation needs to be recognized for what it really is, namely a collective and iterative endeavour rather than an act of heroic individualism, a point illustrated by reference to the interactive model of innovation. To develop this argument, three institutional ‘carriers’ of innovation are examined — firms, states, and systems — where the capacity to promote associational behaviour is one of the most important ingredients in the recipe of a successful corporate strategy and more effective public policy. Finally, this chapter identifies some of the intangible factors — like trust, voice, and loyalty — which underpin associational action in firms, countries, and regions.
Philip Cooke and Kevin Morgan
- Published in print:
- 1998
- Published Online:
- October 2011
- ISBN:
- 9780198290186
- eISBN:
- 9780191684784
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198290186.001.0001
- Subject:
- Business and Management, Innovation, Political Economy
This book explores important issues of corporate reorganization in the context of heightened global competition. Its special focus is upon how firms associate with regional milieux. Innovation is a ...
More
This book explores important issues of corporate reorganization in the context of heightened global competition. Its special focus is upon how firms associate with regional milieux. Innovation is a key factor in corporate and regional economic performance and the book shows how interactive innovation based on collective learning and associative practices are becoming increasingly significant. In-depth studies of inter-firm and firm-agency interactions are presented for four European regions: Baden-Württemberg and Emilia-Romagna as accomplished regional economies; Wales and the Basque Country as learning regions. The book is theoretically informed by an evolutionary economics perspective and draws policy conclusions which emphasize the importance of decentralized industrial policy in support of both corporate and regional economic development ambitions. It concludes that the associational economy may be the ‘third way’ between state and market co-ordination of modern economies.Less
This book explores important issues of corporate reorganization in the context of heightened global competition. Its special focus is upon how firms associate with regional milieux. Innovation is a key factor in corporate and regional economic performance and the book shows how interactive innovation based on collective learning and associative practices are becoming increasingly significant. In-depth studies of inter-firm and firm-agency interactions are presented for four European regions: Baden-Württemberg and Emilia-Romagna as accomplished regional economies; Wales and the Basque Country as learning regions. The book is theoretically informed by an evolutionary economics perspective and draws policy conclusions which emphasize the importance of decentralized industrial policy in support of both corporate and regional economic development ambitions. It concludes that the associational economy may be the ‘third way’ between state and market co-ordination of modern economies.
