The spatial organisation of innovation: open innovation, external knowledge relations and urban structure

Abstract

The increased use of external knowledge relations, complementary to in-house R&D, influences the way firms are organised to manage innovation. The 'new' imperative of open innovation promotes the idea that firms organise innovation, to a greater extent, in interaction with outside parties. This paper argues that both the organisation of innovation as well as the use of external knowledge depends on the physical, socio-economic and cultural environment. The outcome of the analysis supports the idea that (open) innovation is spatially organised. Contrary to the expectations, innovative firms in less urbanised areas show a higher degree of openness.