Technological innovation is crucial to the long-term survival of firm, regions and country. Among various factors that affect a product innovation, a substantial body of literature have highlighted the contribution of networks to product innovation in large-sized firms as well as small- and medium-sized firms. However, although the role and importance of networks driving product innovation by firm size are different, researchers that have investigated the relationship among innovation, networks and firm size are very few. In this study, we empirically analyze the effects of networks on product innovative outputs in manufacturing firms using negative-binomial regression model.
Regression analysis is conducted separately for manufacturing firms by firm size and we use the 2010 Korea Innovation Survey data. Moreover, we explore the spatial structure of product innovation networks across regions using social network analysis. As a result of analysis, networks have a positive effect on product innovative outputs in large- and small-sized firms. In large and small firms, product innovation networks are mainly concentrated in Seoul, Gyeonggi and Gyeongnam, while Jeju and Gangwon are alienated from the network.