The Geography of Small Firm Innovation (International Studies in Entrepreneurship (1))

The Geography of Small Firm Innovation offers a unique look at the importance of geographic proximity to the innovative activity of the high-tech small firms. IT explores the concentration of innovation across metropolitan areas in the United States during the 1990's by introducing a novel measure of small-firm innovation based on the U.S. Small Business Innovation Research Program, the largest federal R&D program for small business. The empirical evidence indicates the differing effects of technological infrastructure on both the likelihood of innovation occurring in a metropolitan area, which has implications for public policy. It has long been recognized that advances in science contribute to economic growth. While it is one thing to argue that such a relationship exists, it is quite another to establish the extent to which knowledge spills over within and between sectors of the economy. Such a research agenda faces numerous challenges. Not only must one seek measures of inputs, but a measure of output is needed as well to estimate the knowledge production function. The identification of such a measure was a compelling goal for Zvi Griliches, if not the holy grail: "The dream of getting hold of an output indicator of inventive activity is one of the strong motivating forces for economic research in this area." (Griliches 1990, p. 1669). Jaffe (1989) made a significant contribution to estimating the knowledge production function when he established a relationship between patent activity and R & D activity at the state level. Feldman and coauthors (1994a, 1994b) added considerably to this line of research, focusing on innovation counts as the dependent variable instead of patent counts. This work was particularly important given that many innovations are never patented. Feldman's work also differentiated by firm size and showed that knowledge spillovers from universities play a key role as sources of knowledge for small firms The Geography Of Small Firm Innovation Offers A Look At The Importance Of Geographic Proximity To The Innovative Activity Of The High-tech Small Firms. The Work Explores The Concentration Of Innovation Across Metropolitan Areas In The United States During The 1990's By Introducing A Novel Measure Of Small-firm Innovation Based On The U.s. Small Business Innovation Research Program, The Largest Federal R & D Program For Small Business. The Empirical Evidence Indicates The Differing Effects Of Technological Infrastructure On The Likelihood Of Innovation Occurring In A Metropolitan Area, Which Has Implications For Public Policy.--jacket. 1. Introduction -- 2. The Small Business Innovation Research Program -- 3. Geography And Innovation: The Role Of Knowledge Spillovers And Agglomeration -- 4. Evaluating Innovative Activity -- 5. Metropolitan Sbir Activity In The 1990s -- 6. Agency Effects In Federally Funded Innovation -- 7. Metropolitan Patent Activity In The 1990s -- 8. Conclusion. By Grant Black. Includes Bibliographical References (p. [161]-173) And Index. The Geography of Small Firm Innovation......Page 1 0.front-matter......Page 2 1.Introduction......Page 16 2.The Small Business Innovation Research Program......Page 22 3.Geography and Innovation......Page 42 4.Evaluating Innovative Activity......Page 52 5.Metropolitan Sbir Activity in the 1990s......Page 67 6.Agency Effects in Federally Funded Innovation......Page 76 7.Metropolitan Patent Activity in the 1990s......Page 88 8.Conclusion......Page 108 9.back-matter......Page 117 California's Silicon Valley, Massachusetts' Route 128, and North Carolina's Research Triangle conjure up images of intensely productive regions at the forefront of innovative activity.