THE IMPACT OF SPATIAL PROXIMITY TO CUSTOMERS, SUPPLIERS AND COMPETITORS ON INNOVATION ACTIVITY IN MEDIUM HIGH AND HIGH TECHNOLOGY INDUSTRY IN POLAND

Abstract

The aim of this study is to determine the impact of spatial proximity to customers, suppliers and competitors on innovation activity in medium high and high technology manufacturing industries in Poland. It is assumed that innovation activity is facilitated by both local suppliers and customers whereas it is decreased by local competitors. The scope of the survey relates to innovation in medium high and high technology manufacturing industries in Poland. It concerns innovation at the firm level and takes into account the diffusion to the "new to the company." The study shows that both local and regional suppliers and customers decrease innovation activity whereas both national and foreign ones positively influence on it. For competitors the hypothesis proved to be right. Foreign suppliers, customers and competitors have the highest positive influence on innovation activity whereas local ones have the most negative impact.

Keywords

• supplier
• customer
• competitor
• proximity
• innovation activity