The Role of the Metropolitan Milieu as an Incubation Centre for Technological Innovations: A Dutch Case Study

Abstract

In this article the generation of product and process innovations in Dutch manufacturing firms will be analysed. In this context, the impact of both intra-firm and spatial variables are considered by using a multivariate logit analysis. From this analysis it appears that the generation of product and process innovations varies according to type of firm considered. As to the spatial dimension different types of municipalities are distinguished according to their degree of urbanisation. The empirical results suggest that firms located in the most urbanised municipalities perform relatively poorly regarding the generation of (high quality) process innovations, but not in terms of the generation of product innovations. These results also indicate that the importance of internal and external R & D efforts for the generation of product innovations varies - and in an opposite pattern - according to the degree of urbanisation. These results underscore the spatial dimension of innovative behaviour.