Modes of innovation and differentiated responses to globalisation - a case study of innovation modes in the Agder region, Norway

Abstract

The main argument of this paper is that firms and industries are dominated by different innovation modes and that they therefore respond differently to challenges of globalisation. The paper differentiates between three modes: science, technology and innovation (STI), doing, using and interacting (DUI) application mode and the DUI technological mode. These innovation modes are based on different dominant knowledge bases, modes of learning and external knowledge. What is the implication of these differences with regard to competing in a global economy? Our empirical research shows that firms innovating according to the DUI application mode are in a position of negative lock-in due to severe competition from low-cost countries. The DUI technological mode firms are globally competitive due to a strong regional technological base built upon broad collaboration and a mixed innovation strategy. The STI firms are often part of international or national corporations, with a constant threat of being relocated to another country if they are not globally competitive.