Section 7 provides a 2 Parsons sees a social system as part of a social action system that comprises the economy (social adaptation to its action and non-action environmental systems), the polity (collective goal attainment),
3 Luhmann sees social systems as systems of communication, which operate by processing‘meaning 'and constantly recreating themselves through their communication, subject to
what is considered meaningful and what is not, in a process of self-regeneration called autopoiesis. 5 comparative analysis of Triple Helix systems
and firm founders, contributing to economic growth and job creation (see, for example Startx, Stanford's student start-up accelerator, which in less than a year 6 trained 90 founders and 27 companies4,
or the Team Academy-the Entrepreneurship Centre of Excellence of JAMK University of Applied sciences in Jyväskylä, Finland, where students run their own cooperative businesses based on real-life projects5).
Universities are also extending their capabilities of educating individuals to educating organizations, through entrepreneurship and incubation programmes and new training modules at venues such as interdisciplinary centres, science parks, academic spin-offs, incubators (Etzkowitz, 2008;
Almeida, Mello and Etzkowitz, 2012. Thirdly, universities'capacity to generate technology has changed their position, from a traditional source of human resources and knowledge to a new source of technology generation and transfer,
In a laissez-faire regime, characterised by a limited state intervention in the economy (e g. the US, some Western europe countries), industry is the driving force, with the other two spheres as ancillary support structures and limited roles
university acting mainly as a provider of skilled human capital, and government mainly as a regulator of social and economic mechanisms.
as the best environments for innovation are created at the intersections of the spheres. This is where creative synergies emerge
Etzkowitz and Leydesdorff (2000)( ii) A (neo) evolutionary perspective, inspired by the theory of social systems of communication (Luhmann, 1975,1984) and mathematical theory of communication (Shannon, 1948),
These forms of interaction are part of two processes of communication and differentiation: a functional one, between science and markets,
The institutional spheres are seen also as selection environments, and the institutional communications between them act as selection mechanisms,
which may generate new innovation environments and ensure thus the‘regeneration'of the system (Etzkowitz and Leydesdorff, 2000;
Leydesdorff, 2000. The activities of the Triple Helix actors are measured in terms of probabilistic entropy, which, when negative, suggests a self-organizing dynamic that may temporarily be stabilized in the overlay of communications among the carrying agencies (e g.
Leydesdorff, 2003; Leydesdorff, Dolfsma and Van der Panne, 2006. The systemic nature of the Triple Helix interactions is an underlying dimension of both perspectives described above,
On the other hand, in more advanced contexts, where innovation stakeholders are more mature and have attained more complex forms of interaction,
as well as beyond that, in the nonprofit sector (e g. charities, foundations, professional/trade associations, service organizations, not-for-profit corporations, trusts, etc.).
personnel training and competence-building, interaction with users, acquisition of patents and licenses, consultancy services, etc.
firms and government research labs, industrial liaison offices, business support institutions (science parks, business and technology incubators), financial support institutions (public and private venture capital firms
in order to increase flexibility and responsiveness to changing market demands. Also, institutional boundaries are more permeable (Etzkowitz, 2012) as the single institutional spheres of University,
manifested through increasing communication and interconnectivity between people and institutions, mobility of people and financial capital, delocalisation and globalisation of production sites, labour and social relationships, etc.
Elements like generation and internalization of new skills and abilities required for integration into dynamic work environments, access to both information and knowledge,
which individual and institutional innovation and entrepreneurship initiate and reinforce each other. o The‘Innovation Organizer is defined as a person that typically occupies a key institutional position,
and build a platform where innovation stakeholders from different organizational backgrounds and perspectives can come together to generate
A process of‘cross-institutional entrepreneurship'spanning the Triple Helix spheres is initiated thus for improving the conditions for knowledge-based development.
the Head of the New york Federal reserve bank initially took the lead in calling for high-tech development as an alternative to finance as the engine of New york's economy.
no interest in entrepreneurship, but in firm-formation as useful source for developing technology needed to advance basic research goals.
Communities of complementary entrepreneurial individuals are particularly visible in high-tech entrepreneurship, which is virtually always a collective phenomenon.
However, in the US a strong ideology of individual entrepreneurship usually suppresses the contributions of collaborators and pushes a single individual to the forefront9 (Freiberger and Swaine 2000.
In Sweden, by contrast, collective entrepreneurship is accepted openly, as individuals are inhibited culturally from attempting an entrepreneurial act
in addition to their traditional function of regulation and control, investment and provision of public venture capital, which is a traditional task for the Industry sphere (e g.
and even funding to encourage entrepreneurial ventures, thus enacting some of the traditional role of industry.
low/non-R&d small firms) that prefer the more practical, shorter-term oriented opportunities of the vocational training institutions to the more complex, long-term programmes of the university (Ranga et al. 2008).
and has the ultimate 10 The European Technology Platforms (ETPS) are led industry multinational networks (36 ETPS in 2011) that bring together various stakeholders to define a common vision and implement a medium-to long-term Strategic
Research Agenda in key industrial areas for Europe's competitiveness and economic growth (http://cordis. europa. eu/technology-platforms/).
a form of long-term public-private partnerships that combine private sector investment and/or national and European public funding (five JTIS in 2011)( http://cordis. europa. eu/fp7/jtis/).
/11 For example, increasing network value with higher number of participants, reduction of research projects overlapping through network centralisation, complementary investments for information dissemination that may lead to economic
benefits and easier access to information flows within the network by governments and firms, increasing their choices about specialisation, co-operation and competition (Steinmueller,
o Dispersal of some national public research organisations from the capital to less research-intensive regions.
with more research institutes being transferred from the capital to other regions to strengthen their knowledge base. o Relocation and aggregation of existing research resources-in North carolina's Research Triangle,
and then leverage location-specific knowledge assets to induce new investment and create new value. 17 o Creation of new university resources to support the development of new industries or raise the existing ones to a higher level.
This strategy is exemplified in Sweden by the founding of the Stockholm School of Entrepreneurship as a joint initiative of Stockholm University
These joint institutional and individual innovation efforts that come together in a form of public entrepreneurship go well beyond firm formation
and business plan competitions that are now are implemented increasingly worldwide (Morris, 1998) and are a key element for economic and social development in a national, regional or local innovation environment.
The creation of an Innovation Space can take place through various mechanisms, including: o Creation of a university in a region without higher education capacity,
and government in creating a venture capital industry to support new firm formation and growth (Etzkowitz, 2002).
o Building an integrated environment for university technology transfer and entrepreneurship activities. When a university establishes a liaison
it soon realizes that a much broader range of services and support structures are required in order to market intellectual property
Sometimes, this involves inserting the new innovation mechanism into a broader institutional environment such as a national
or regional-wide network of transfer offices in order to identify market opportunities and partners. Other times, an alliance with local city and regional governments may pave the way to funding an incubator facility to assist in spinning off firms.
A good example of this approach to building an innovation Space is the Flemish Catholic University of Leuven (KUL)
which have become the core of a thriving regional innovation network including incubators, science parks, business centres, venture capitalists, spin-off companies and international R&d intensive 20 companies,
For example, Barcelona's@22 urban science park project aims to recycle an old industrial district into a platform for knowledge-based enterprises.@
Achieving consensus may make the difference between an environment with untapped resources and one that has put them to use to achieve economic and social development.
which invented the contemporary format for the venture capital firm, building upon family investment firms with a professional staff.
They worked out a political strategy to make the venture capital firm a viable entity by lobbying to 22 change laws that prevented large financial institutions from investing in risky ventures. o Providing solutions to conflict or crisis situations
or by emerging companies that proved to be too weak to restart the economy. A shift to a knowledge-based economy was sought, in
which universities would play a greater role, moving on from the position of R&d labs for industry they had played earlier.
Sweden's movement of leading corporations and entrepreneurs abroad in the early 1990s or mergers with foreign firms that also outsourced economic activities abroad caused a financial crisis
relations and resources and the creation of new institutional formats, under the influence of specific local or regional needs, features of the interacting Triple Helix spheres and of their environment.
and Harvard in scientific instruments from the turn of the century and in the newly-emerging radio industry in the 1920's and invented the venture capital firm to expand
A venture capital approach was taken with a few promising ideas, like computer networking, winnowed from a larger collection (Miller, 1997).
In 2010, Kista Science City counted over 1, 000 ICT companies and over 5, 000 ICT students and scientists, a high concentration of expertise, innovation and business opportunities within ICT
Other priorities included enhancing interactions between different innovation stakeholders, such as firms, universities and research institutes,
External investments as key inputs for regional development come in response to improved infrastructure, fiscal incentives and programmes provided by federal
and high-growth entrepreneurship through public and private partnerships, stimulate growth in a designated region
such as strong knowledge base, skilled labour services and proximity to sources of knowledge and expertise, are much more important than cost reductions, especially for high-tech firms.
are more dependent on the resources of their local environments. Therefore, creating the infrastructure for local knowledge creation
emphasising high-tech entrepreneurship and local capacity-building through better use of local capital resources, increased local control and greater equity (Blakely, 1989).
the spaces remain structurally coupled to various extents as they rely on the underlying communication between the Triple Helix actors involved.
and better work conditions to attract distinguished researchers rather than develop young researchers. 16 The Brazilian popular cooperative incubator model was invented bottom-up by a university incubator
and economic growth in evolutionary systems where institutions and learning processes are of central importance (Freeman, 1987,1988;
or dynamic, self-organizing business environments (Johannson et al. 2005), etc. Sectoral Innovation Systems (Breschi and Malerba, 1997;
or bottom-up initiatives that need a favourable environment 33 to reach fruition, but also require policy measures that better integrate innovation and entrepreneurship within the larger socioeconomic context,
especially research, education, labour market and development policies. Secondly, we also need to understand more about the growth of the spaces over time,
For example, we know that economic downturn and political crises are a major catalyst for the creation of the Consensus space,
In the past, the venture capital model was created from such an analysis (Etzkowitz, 2002; what form would such analysis take in our days?
The OECD Science, 20 See details at http://ec. europa. eu/enterprise/policies/innovation/files/ius-2011 en. pdf. 21 This indicator is part of the University-Industry
and services or for-profit contract research organizations. See http://www. socialsciences. leiden. edu/cwts/research/uirc-scoreboard-2011. html 34 Technology
For example, the number of spin-offs graduated from university incubators could be a relevant indicator for the Innovation space,
i) mapping of‘single'-and‘multi-sphere'(hybrid) institutions, in particular science parks, incubators, business/technology incubators;
increased participation of industry and other private stakeholders in public research priority-setting, licensing and exploitation of intellectual property rights (IPR) resulting from publicly-funded research, IPR awareness and training activities,
national and regional programmes to promote venture 35 capital funds and loans, improve access to debt
and collaboration between national and regional innovation stakeholders and creating new platforms for communication, promoting collaborative governance measures,
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as well as providing an extensive range of online products and additional customer resources and services. Emerald is both COUNTER 4
Finland Abstract Purpose The purpose of this paper is to examine the information sourcing practices of small-to medium-sized enterprises (SMES) associated with the development of different types of innovation (product/process/market/organizational).
Practical implications The study suggests a need to reevaluate the innovation-related services available to firms in the regional innovation system.
Keywords Small to medium-sized enterprises, Innovation, Information management, Company performance, Finland Paper type Research paper 1. Introduction It has become commonplace to argue that in the contemporary knowledge-based
economy (e g. Cooke and Leydesdorff, 2006; OECD, 1996), characterized by both accelerating pace of change and increasing complexity and uncertainty,
the ability of firms to adapt in their external environment and to remain competitive is closely The current issue
) As Nonaka (1991,96) puts it, in an economy where the only certainty is uncertainty, the one sure source of lasting competitive advantage is knowledge.
From the point-of-view of an individual entrepreneur, the knowledge-based economy is mixed a blessing: more and more information is freely available,
as well as on the complex web of interactions and on the institutional environment guiding and facilitating the actions and interactions of economic agents.
Thus, the notion of the representative firm of mainstream economics is abandoned. Likewise the resource-based view, the evolutionary approach stresses the significance of firm's unique technological Entrepreneurial SMES 131 Downloaded by WATERFORD INSTITUTE OF TECHNOLOGY At 04:12 03 july 2015 (PT) resources and knowledge
but are forced to seek for complementary information from their environment. The notion of absorptive capacity (Cohen and Levinthal, 1990;
what firmly amalgamates the innovative firm with its surrounding environment. In contrast with the transaction-cost theory (Williamson, 1985), the postulate underpinning the notion of absorptive capacity is that firms must possess adequate internal knowledge and capabilities,
the make or buy calculation of transaction-cost economics loses its relevance as in-house R&d
Organized communication in the firm Spontaneous communication in the firm Social events and shared free time activities Five-point Likert-scale (1 Insignificant to 5 Very important) NETWORKA
Sum-variable measuring the importance of different network relations for innovation Customers Suppliers and subcontractors Competitors Sales and delivery organizations Business service firms and consultants Accounting companies
Local association of entrepreneurs City office of business and industry Local business development organizations Business incubators Employment and Economic Development Center (regional office) Five
to achieve scale economies in production, and to reduce the time taken to develop and commercialize new products (Tidd et al.,
) Previous research has emphasized particularly the importance of vertical network relationships with suppliers and customers as an important source of innovation-related inputs (Von Hippel, 1988;
for internationalization) The Federation of Finnish Enterprises Chamber of commerce Industrial associations Five-point Likert-scale (1 Insignificant to 5 Very important) DIFFEXTA Sum-variable measuring
The entrepreneur's assessment of the importance of different network relations of the firm (with customers, suppliers, competitors, etc.
customers and competitors, are not the only potential sources of information inputs in the innovation process of a firm.
in order to understand the process of innovation and, concomitantly, technological change and advancement in the economy (e g.
and providing different kinds of innovation-related services for firms. Especially the smaller firms whose internal resources and networking capabilities are limited may benefit from the services
and knowledge provided by the regional support organizations. However, in many small and remote regions the capabilities of regional authorities to offer sufficient and sophisticated innovation-related services may be limited.
Therefore, for the firms located in these regions, the different nationally initiated public support instruments may also be of importance.
The characteristics of the external environment of a firm affect, at least to some extent, the variety of potential external information sources screened
As Na°s and Leppa lahti (1997) remark, a notorious problem with longitudinal statistical analyses such as enterprise panels is attrition
and innovation support services in the region, which forces firms to rely on the generally available information sources (cf.
although the characteristics of the external environment can have an influence on the innovative behaviour of firms,
0. 029*PROFIT 0. 128 0. 458 0. 780 Constant 22.807 1. 280 0. 028*Notes:*
0. 420 0. 300 DIFFEXT 0. 408 0. 327 0. 212 GROWTH 20 935 0. 434 0. 031*PROFIT 20.166
*GROWTH 21.282 0. 510 0 012*PROFIT 20.040 0. 496 0. 936 Constant 23.502 1. 447 0. 016*Notes:*
at least for the firms in this particular region, there is a relatively close fit between the services
21.026 0. 435 0. 018*DIFFEXT 0. 496 0. 338 0. 142 GROWTH 20.401 0. 462 0. 385 PROFIT 20.357
considering the fact that innovation often equals with heavy investments by a firm, returns to
In other words, the decision by the entrepreneur to engage in innovation is rather a long-term investment to assure the continuing success and future survival of the firm
entrepreneurs do not consider the different internal factors in their firms (competencies and know-how of the entrepreneur and his staff, personnel initiatives, personnel training, organized and spontaneous communication between units and individuals in the firm, etc.)
a re-evaluation of the services offered by regional support organizations might be useful. Untangling the actual problems and needs of local firms would be a fruitful step to this direction. 5. 3 Limitations of the study
whether the identification of novel ideas by entrepreneurs is the result of systematic search and screening of their external environment (and, of course, within their firms),
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acted as a research and teaching assistant in SME management (2001-2003) and in entrepreneurship and local economic development (2003-2005),
and lecturer in entrepreneurship (2005-2009) at the Department of Business and Management, University of Kuopio, Finland,
and from 2009 as a lecturer in entrepreneurship at the Department of health Policy and Management, University of Kuopio, Finland (1. 1. 2010 Department of health and Social Management,
and evolutionary and institutional economics. Miika Varis can be contacted at: Miika. Varis@uef. fi Hannu Littunen, after graduating from the University of Jyva skyla,
was a researcher at the University of Jyva skyla, School of business and Economics, Centre for Economic Research, Finland,
and a professor of entrepreneurship and regional development at the Department of Business and Management, University of Kuopio, Finland (2003-2009) and from 2009 a professor of entrepreneurship and regional development at the Department of health Policy and Management
and management entitled The birth and success of new firms in a changing environment in the year 2001.
Research conducted by Hannu Littunen has focused mainly on factors relating to new firms'birth and success, entrepreneurship and regional development.
He has published in several international journals such as International Entrepreneurship and Management Journal, International Journal of Entrepreneurial Behaviour and Research, Small Business Economics, Journal of Small Business and Enterprise
Development, Entrepreneurship and Regional Development, Family business Review, Finnish Journal of Economics, and Academy of Entrepreneurship/International Journal of Entrepreneurship.
Prior to starting work at the University, he worked in various organizations in both public and private sectors in Finland.
Economics of Innovation and New Technology 1-19. Crossref 2. Haim Hilman, Narentheren Kaliappen. 2015.
World Journal of Entrepreneurship, Management and Sustainable Development 11:1, 48-63. Abstract Full Text PDF 3. Hermann Frank, Dietmar Roessl. 2015.
relations to health and social service enterprises'performance in Finland. Innovation and Development 5, 93-111.
Agricultural and Food Economics 3, 10. Crossref 9. Hans Löfsten. 2014. Information Structures and Business Performance-Implications for Technologybased Firm's Innovation Performance.
Technology transfer in a global economy. The Journal of Technology Transfer 39,301-312. Crossref 12. Franz Tödtling, Markus Grillitsch. 2014.
Journal of the Knowledge Economy 5, 330-356. Crossref 13. Thuy Hang Do, Tim Mazzarol, Thierry Volery, Sophie Reboud. 2014.
Assisting regional policy by rapidly comparing enterprise innovation between regions. Journal of Innovation and Entrepreneurship 2
16. Crossref 22. Fulya Sarvan, Gözde Gül Baser, Can Deniz Köksal, Eren Durmus, Onur Dirlik, Murat Atalay, Fulya Almaz. 2012.
SMES and Their Peripheral Innovation Environment: Reflections from a Finnish Case. European Planning Studies 20,547-582.
Journal of Small Business & Entrepreneurship 25,451-477. Crossref 29. Insu Cho, Heejun Park, Jeongil Choi. 2011.
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