In the recent study Unlocking firm innovation under regional disadvantage: can psychological openness compensate? published in the journal Research Policy, Obschonka and international collaborators analysed large-scale data, including data from Sweden. The research examines how firms can remain innovative even when they are located in regions with more economic uncertainty and fewer economic and entrepreneurial opportunities.

The study explores the role of regional disadvantage in relation to entrepreneurship and innovation. This includes factors such as lower levels of economic development, fewer knowledge institutions, limited access to skilled labour and weaker entrepreneurial ecosystems. Such conditions can constrain innovation, making it more difficult for firms to develop new products, services or processes.

Psychological openness

The study shows that psychological openness can help compensate for these disadvantages. In this context, the researchers identified traits such as a willingness to explore new ideas, embrace change and think creatively. Firms led by entrepreneurs or business owners with higher levels of openness are more likely to innovate, even in less supportive regional environments.

Interaction

The findings suggest that individual traits and regional conditions interact. While a challenging environment can limit opportunities, an entrepreneurial mindset can help unlock them. In other words, who the entrepreneur or business owner is can matter just as much as where the firm is located. Importantly, the study also points out that these psychological traits are not fixed. They can be strengthened through education and experience, offering new ways to support innovation in regions that lag behind economically.

What does this mean in practice? For an entrepreneur or business owner operating in a less advantaged region, staying open to new ideas, experimenting and actively seeking opportunities can help overcome structural barriers and drive innovation.

Publication details

Unlocking firm innovation under regional disadvantage: Can psychological openness compensate? by Martin Obschonka (Amsterdam Business School), Markus Grillitsch (Lund University, Sweden), Sam Tavassoli (Deakin University, Australia)