The Impact of Spatial Proximity to Competitor, Supplier and Customer on Innovation Activity in Medium-Low Industry in Poland
DOI:
https://doi.org/10.24917/20801653.311.2Keywords:
competitor, customer, innovation activity, proximity, supplierAbstract
The aim of this study is to determine the impact of spatial proximity to customers, suppliers and competitors on innovation activity in medium-low technology manufacturing industries in Poland in the years 2008-2013. The scope of the survey relates to innovation at the company level and takes into account the diffusion to the “novelty to the company”. Innovative activities are divided into the following groups: investments in R&D and fixed assets not used so far such as buildings, premises and land; machinery and equipment, computer software; implementation of new products and processes; and innovative collaboration. The survey covers 2,301 industrial enterprises. It is assumed that innovation activity is facilitated by both local suppliers and customers, whereas it is impeded by local competitors. The methodological part of the study is based on probit modeling which enables to identify the probability of occurrence of innovation activity depending on geographical proximity of competitor, supplier and customer. The study shows that the impact of geographical proximity on innovation activity is diversified. The highest number of relationships relates to national suppliers and customers. The cooperation with foreign partners is positively correlated with R&D expenditures and propensity to cooperation with universities.
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