Knowledge sourcing in a traditional industry: prospects of peripheral regions

Despite its economic relevance, only a few studies focus on knowledge creation, diffusion and utilisation in traditional industries located in peripheral regions, and even fewer on the innovation interdependencies between industries and regions. The theory of differentiated knowledge bases is capable to explain both the industrial and spatial patterns of the knowledge flows. The present study aims to reveal the process of innovation-related knowledge sourcing in the printing industry located in the peripheral region of Kecskemet, Hungary. The research builds on three main questions: what are the main sources of new knowledge? Who are the main collaborative partners in knowledge acquisition and transfer? And what is the main spatial level of knowledge sourcing? The results indicate that in a peripheral region, innovative firms build on the combination of direct and indirect knowledge sources mostly external to the region, while the non-innovative ones typically rely on local, incomplex knowledge sources.