The effects of national and international interaction on innovation: evidence from the Irish CIS: 2004-6

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Doran, Justin
Jordan, Declan
O'Leary, Eoin
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This paper analyses the importance of decisions to interact nationally and internationally on the likelihood of process and product innovation for a sample of Irish firms. The key contribution is to provide an empirical test of the relative importance of geographically proximate versus distant interaction, using a two-step procedure to remove potential endogeneity in interaction decisions. In doing so it finds that only national and only international interaction have the expected positive effects on the probability of innovation, while engaging in both national and international interaction has no effect. The findings support hypotheses on the importance of both geographically proximate and distant interaction for innovation, though the lack of significance for both national and international interaction means there is no evidence to support the proposition that these forms of interaction are complementary.
Geography , Business interaction , Business innovation
Doran, J., Jordan, D and O'Leary, E. (2012) 'The Effects of National and International Interaction on Innovation: Evidence from the Irish CIS: 2004-6'. Industry and Innovation, 19 (5), pp. 371-390. doi: 10.1080/13662716.2012.711020
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This is an Author's Original Manuscript of an article whose final and definitive form, the Version of Record, has been published in INDUSTRY AND INNOVATION [23 August 2012] [copyright Taylor & Francis], available online at: