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Agglomeration Externalities in National Systems of Innovation: The Role of Industrial Diversity and Competition on Countries’ Innovative Levels

2025-03Journal article Open access
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datacite.subject.fosCiências Sociais
datacite.subject.sdg08:Trabalho Digno e Crescimento Económico
datacite.subject.sdg12:Produção e Consumo Sustentáveis
dc.contributor.authorDuarte, Marcelo Pereira
dc.contributor.authorCarvalho, Fernando Manuel Pereira de Oliveira
dc.contributor.authorFerreira, Manuel
dc.contributor.authorFerreira, Manuel Portugal
dc.date.accessioned2025-12-04T10:11:23Z
dc.date.available2025-12-04T10:11:23Z
dc.date.issued2025-03
dc.description.abstractEconomic geographers, industrial economists and innovation scholars have long debated the impact of agglomeration externalities on innovation, often with conflicting results. We argue that rather than focusing on which agglomeration externality most influences innovation, we should gain a deeper understanding of how agglomeration externalities influence innovation. Drawing on the concept of national systems of innovation (NSI), we examine the role of industrial diversity and domestic competition as contingency factors that affect the relationship between national innovation inputs and outputs. Using secondary data from 86 countries, we developed interaction models, and our findings indicate that industrial diversity positively influences the relationship between innovation inputs and outputs. Additionally, we found that the relationship between innovation inputs and outputs is strengthened at higher levels of diversity and competition. Also, the positive effects of institutions on innovation outputs increase with high industrial diversity and medium to high domestic competition. Similarly, the positive marginal effect of human capital and research on innovation outputs is strengthened by increasing industrial diversity, although a medium-low level of competition can undermine this effect. This study contributes to the ongoing debate on agglomeration externalities and the NSI literature by highlighting the role of industrial diversity and competition in shaping national innovation outcomes.eng
dc.description.sponsorshipFunding text The author(s) disclosed receipt of the following financial support for the research, authorship, and/or publication of this article: Marcelo Pereira Duarte acknowledges the support by the FCT \u2013 Funda\u00E7\u00E3o para a Ci\u00EAncia e a Tecnologia, I.P. within the project UI/BD/150977/2021, with DOI: 10.54499/UI/BD/150977/2021. Manuel Ferreira acknowledges the support by the FCT \u2013 Funda\u00E7\u00E3o para a Ci\u00EAncia e a Tecnologia, I.P. within the project UIDB/04928/2020. Marcelo Pereira Duarte and Fernando Manuel Pereira de Oliveira Carvalho acknowledge the support by the FCT \u2013 Funda\u00E7\u00E3o para a Ci\u00EAncia e a Tecnologia, I.P. within the project UIDB/05037/2020, with DOI: 10.54499/UIDB/05037/2020.
dc.identifier.citationDuarte, M. P., Carvalho, F. M. P. D. O., & Ferreira, M. P. (2025). Agglomeration Externalities in National Systems of Innovation: The Role of Industrial Diversity and Competition on Countries’ Innovative Levels. SAGE Open, 15(1), 21582440251316935.
dc.identifier.doi10.1177/21582440251316935
dc.identifier.issn2158-2440
dc.identifier.issn2158-2440
dc.identifier.urihttp://hdl.handle.net/10400.8/14838
dc.language.isoeng
dc.peerreviewedyes
dc.publisherSAGE Publications
dc.relationCentre for Business and Economics Research - University of Coimbra
dc.relationCentre of Applied Research in Management and Economics
dc.relation.hasversionhttps://journals.sagepub.com/doi/10.1177/21582440251316935
dc.relation.ispartofSAGE Open
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/
dc.subjectagglomeration externalities
dc.subjectcompetition
dc.subjectindustrial diversity
dc.subjectmoderation analysis
dc.subjectnational systems of innovation
dc.titleAgglomeration Externalities in National Systems of Innovation: The Role of Industrial Diversity and Competition on Countries’ Innovative Levelseng
dc.typejournal article
dspace.entity.typePublication
oaire.awardTitleCentre for Business and Economics Research - University of Coimbra
oaire.awardTitleCentre of Applied Research in Management and Economics
oaire.awardURIinfo:eu-repo/grantAgreement/FCT/6817 - DCRRNI ID/UIDB%2F05037%2F2020/PT
oaire.awardURIinfo:eu-repo/grantAgreement/FCT/6817 - DCRRNI ID/UIDB%2F04928%2F2020/PT
oaire.citation.issue1
oaire.citation.titleSAGE Open
oaire.citation.volume15
oaire.fundingStream6817 - DCRRNI ID
oaire.fundingStream6817 - DCRRNI ID
oaire.versionhttp://purl.org/coar/version/c_970fb48d4fbd8a85
person.familyNameFerreira
person.givenNameManuel
person.identifier.ciencia-id2B1A-16D4-80DA
person.identifier.orcid0000-0002-4642-4605
person.identifier.ridA-2322-2012
person.identifier.scopus-author-id7402787382
project.funder.identifierhttp://doi.org/10.13039/501100001871
project.funder.identifierhttp://doi.org/10.13039/501100001871
project.funder.nameFundação para a Ciência e a Tecnologia
project.funder.nameFundação para a Ciência e a Tecnologia
relation.isAuthorOfPublication69895f61-97d7-47e5-93e3-ede7fb54631c
relation.isAuthorOfPublication.latestForDiscovery69895f61-97d7-47e5-93e3-ede7fb54631c
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