Question

Describe the traditional and the emerging models of cross-border innovation. 700 words

Answer 1

three ideal types of cross-border settings are identified which represent different degrees of integration: weakly integrated systems (stage I), semi integrated systems (stage II) and strongly integrated systems (stage III). In the following we will pinpoint basic conditions characterizing each stage regarding the main RIS dimensions identified above, that is economic structure, science and knowledge bases, nature of linkages, institutional set-ups, and policy structures. Furthermore, we add the dimension ‘accessibility’ to take into account the degree of physical proximity.

Stage I: Weakly integrated systems Weakly integrated systems are characterized by low levels of cross-border economic relations in general and a lack of knowledge interactions and innovation linkages in particular. Various ‘Euroregions’ seem to represent a case in point in this respect (HASSINK et al., 1995; VAN GEENHUIZEN et al., 1996). Integration processes – if any exist or develop at all – show a dominance of asymmetric cost-driven linkages, mainly exploiting internal price and cost differences. Such an asymmetric pattern of integration has been reported in several analyses of cross-border regions (see, for instance, the work by KRÄTKE (1999) and KRÄTKE and BORST (2007) on the German-Polish border area or the study done by TRIPPL (2008) on the Centrope region). There are two main reasons for such a situation, i.e. lack of synergies and under-exploitation of synergies. Lack of synergies: Non-integration can be the outcome of missing synergies for cross-border linkages. On the one hand, too strong differences in the scientific specialization, knowledge bases, and economic structures (i.e. cognitive distance) make interaction useless, because none of the involved regions can draw benefits from integration. On the other hand, if the regions are too similar in terms of their knowledge bases (reflecting too much cognitive proximity) also little can be learnt from interaction. Consequently, the potential benefits that result from establishing relations and investing in new cross-border linkages can be assumed to be rather low compared to those which are likely to result from further developing and capitalizing on already existing links with actors at other spatial scales. If sub-optimal levels of cognitive distance are the main reason for missing linkages, at least in the medium term, the prospects for the development of more advanced and interactive knowledge interactions are poor, regardless if it is possible to the remove other types of barriers. Absence of synergies might also be the consequence of too high levels of functional distance. Although there might be some similarities in the scientific or economic specialization pattern so there will be no interaction because the regions differ too strongly in their respective innovation capabilities, performances and receiver competences.

Stage II: Semi-integrated systems : In semi-integrated settings we might observe what can be referred to as an emerging knowledge-driven system. Such systems feature decreasing levels of asymmetry and provide opportunities for new and more mutual beneficial linkages on both sides of the border. In addition to links drawing on pure internal price-cost differences resulting in increased economies of scales and the opening up of new markets, there are also windows of opportunities leading to economies of scope and increased cross-border learning processes in a few selective parts of the economy. These more interactive linkages can be observed in narrow segments of the science base and economic structure where good levels of cognitive and functional proximity prevail. Consequently, in semi-integrated systems we might find a few networked cross-border clusters exhibiting such sound degrees of cognitive and functional proximity (see, for instance, the case of the Canada-US cross-border region of Cascadia (Pacific North West) as described by BRUNET-JAILLY (2008).

Stage III: Strongly integrated systems This stage of cross-border RIS development represents the most advanced form of innovation driven integration. We look at an ideal type of integration, where the distinct RIS in the constituent regions of the cross-border area become more and more melted into a single one. Strongly integrated trans-frontier RIS are characterized by a considerable flow of knowledge, expertise and skills across the border, brought about by a high intensity of mobility of students and labor, innovation related networking among firms, academic collaborations, university-industry partnerships, etc. These knowledge interactions have reached a level at which they can form a central underpinning of the innovation performance of the cross-border region.

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