ABSTRACT
Research on how firms actually behave in territorial innovation systems has raised questions about some taken-for-granted premises in policy-oriented regional development studies (Diez and Kiese 2006; Hendry and Brown 2006; Kristensen and Zeitlin, 2005; Malmberg and Power, 2005; Martin and Sunley, 2001). One taken-for-granted premise is that co-located transnational and small and medium-size firms exist in a cooperative relationship that enables the small and medium size enterprises (SMEs) to introduce innovations and reach global markets. Kristensen and Zeitlin (2005) and Dicken (1998) describe how the assumed symbiotic relationship between large and small firms is rooted in the ‘lead agent’ role played by transnational corporations (TNCs).Within this theoretical frame, TNCs locate in regional innovation systems to tap the specialized innovative capacity of small firms. In return, because they have more favourable access to capital and information, TNCs enable regionalized SMEs to access innovation-relevant information and reduce risk in volatile financial markets.
