Building an internationally oriented open regional innovation system : a paradox perspective

Abstract

An open regional innovation system is often characterised by the firms' adoption of an open innovation strategy, which is closely linked to absorptive capacity. This study explores the effects of the firms' absorptive capacity on open regional innovation systems by investigating how regional firms respond to the development of an internationally oriented open regional innovation strategy. A living lap approach is adopted in this study based on the case of Sino-Finnish innovation capacity building in the Vaasa region in Finland. By addressing the tensions between exploitation and exploration innovation strategy, this research identifies three types of organisational paradox in relation to organisational absorptive capacity: (1) knowledge bases, (2) organisational policies, and (3) dominant logic. This paper also indicates the gradual evolution of the regional innovation system - the move from a centralised regional innovation system to a distributed regional innovation system, driven by the trend of globally distributed knowledge sharing.