Knowledge Sourcing and Innovation in Austrian ICT Companies-How Does Geography Matter?

Innovation is regarded as a highly open and interactive process, where companies absorb, generate and apply knowledge relying both on internal and external sources. They maintain links to various knowledge sources from local to global levels using particular channels for acquiring such knowledge. Although global knowledge networks might render the regional environment less important, we argue that geography still matters i) as location for innovation activities and ii) as multiscalar pattern of knowledge relationships. We investigate, therefore, to what extent firms are using particular knowledge sources from regional, national or international spatial levels, and to what extent their innovativeness can be explained by the knowledge sourcing pattern and their location. The paper draws on data from 110 ICT companies in three Austrian regions and uses both descriptive tools and multivariate models. The variety of knowledge sources used on regional as well as international levels and the engagement in R&D cooperations are identified as key factors for innovation in the ICT-sector, whereas company location had less direct effect.