Highly Innovative Small Technology Firms, Industrial Clusters, and Firm Internationalization

13 Pages Posted: 16 Dec 2012

See all articles by Dirk Libaers

Dirk Libaers

University of Missouri-Kansas City

Martin S. Meyer

University of Kent, Kent Business School

Date Written: December 16, 2012

Abstract

This study examines the role and differential impact of industrial clustering in the internationalization of small technology-based firms. Serial innovator firms are a set of small, long-lived technology-based firms with a stellar record of inventive success. In contrast, non-serial innovators are small technology-based firms with much weaker inventive capabilities. Using theoretical insights from the resource-based view and density dependence theory, we demonstrate that both serial and non-serial innovator firms benefit from rising levels of industrial clustering in their efforts to internationalize; however, non-serial innovators experience decreasing returns with increasing levels of clustering. In addition, our analysis indicates that overall serial innovator firms benefit more from industrial clustering in terms of internationalization than non-serial innovator firms. The underlying premise and contribution of this study is that all small technology-based firms are not the same and that serial innovators are more effective at leveraging cluster-based resources than non-serial innovators, even when they operate in the same industry. Policy implications for research and economic development are discussed.

Keywords: Serial and non-serial innovator firms, Industrial clustering, Internationalization, RBV, Density dependence theory

JEL Classification: M13, O18

Suggested Citation

Libaers, Dirk and Meyer, Martin S., Highly Innovative Small Technology Firms, Industrial Clusters, and Firm Internationalization (December 16, 2012). Research Policy, Vol. 40, No. 11, 2011, Available at SSRN: https://ssrn.com/abstract=2190058

Dirk Libaers (Contact Author)

University of Missouri-Kansas City ( email )

5110 Cherry St.
Kansas City, MO 64110
United States

Martin S. Meyer

University of Kent, Kent Business School ( email )

Keynes College
Canterbury, Kent CT2 7NP
United Kingdom

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