The role of codified sources of knowledge in innovation: empirical evidence from Dutch manufacturing

This paper explores ongoing debates about the role that codified forms of knowledge play in fostering firms' and countries' innovative performance. It aims to provide an empirical exploration of the use of codified sources of information for innovation at the sectoral level. Despite considerable interest in David and Foray's (1995) work on the codification of knowledge and the changing nature of innovation due to the use of information and communication technologies, there are relatively few empirical studies that probe the role of codified sources of information in the innovation process. Our goal is to assess 'how' important codified sources of information are for innovation for different sectors and to the innovation system in general. We explore the relationship between the use of codified sources by individual firms and increases in the 'distributional power' of an innovation system, a key component in David and Foray's codification argument. We then link the use of codified sources to different innovative strategies and characteristics of innovation at the firm level. The data used for the analysis is based on The Netherlands Community Innovation Survey (II) for the manufacturing sector. The data set covers 1997 firms in 11 major industries.