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Buzz and pipelines: the costs and benefits of local and nonlocal interaction

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  • Christopher R Esposito
  • David L Rigby

Abstract

Explanations for why firms in some clusters outperform others rest on the assumed benefits of local and nonlocal interaction. In this article, we extend research on knowledge sharing by modeling local and global interactions between firms distributed across industrial clusters. Our simulation model develops an evolutionary framework where firms explore and exploit knowledge sets accumulated over time by recombining technologies held by local and nonlocal partners. In investigating the opportunity cost structure of local and nonlocal interaction, our simulation raises two important questions that call for additional theoretical and empirical analysis. First, can too much local interaction induce technological lock-in and restrict innovation in clusters? Second, does nonlocal interaction entail opportunity costs to clusters that can outweigh its benefits?

Suggested Citation

  • Christopher R Esposito & David L Rigby, 2019. "Buzz and pipelines: the costs and benefits of local and nonlocal interaction," Journal of Economic Geography, Oxford University Press, vol. 19(3), pages 753-773.
  • Handle: RePEc:oup:jecgeo:v:19:y:2019:i:3:p:753-773.
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    File URL: http://hdl.handle.net/10.1093/jeg/lby039
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    Citations

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    Cited by:

    1. Keyan Zheng & Fagang Hu & Yaliu Yang, 2023. "Data-Driven Evaluation and Recommendations for Regional Synergy Innovation Capability," Sustainability, MDPI, vol. 15(14), pages 1-21, July.
    2. Esposito, Christopher R., 2023. "The geography of breakthrough invention in the United States over the 20th century," Research Policy, Elsevier, vol. 52(7).
    3. Nigel Driffield & Jun Du & Jan Godsell & Mark Hart & Katiuscia Lavoratori & Steven Roper & Irina Surdu & Wanrong Zhang, 2021. "Understanding productivity:Organisational Capital perspectives," Working Papers 013, The Productivity Institute.
    4. Zeng Gang & Zhang Yi & Cao Xianzhong, 2023. "Cross-Border knowledge pipelines and innovation performance of chinese firms: evidence from Zhangjiang in Shanghai," ZFW – Advances in Economic Geography, De Gruyter, vol. 67(1), pages 33-46, May.
    5. Lei Ye & Gang Zeng & Xianzhong Cao, 2020. "Open innovation and innovative performance of universities: Evidence from China," Growth and Change, Wiley Blackwell, vol. 51(3), pages 1142-1157, September.
    6. Xianzhong Cao & Bo Chen & Yi Guo & Zhenzhen Yi, 2023. "The Impact of Intra-City and Inter-City Innovation Networks on City Economic Growth: A Case Study of the Yangtze River Delta in China," Land, MDPI, vol. 12(7), pages 1-17, July.
    7. Marina Papanastassiou & Robert Pearce & Antonello Zanfei, 2020. "Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: A review of the literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 623-664, June.
    8. Xie, Xuemei & Wu, Yonghui & Devece, Carlos, 2022. "Is collaborative innovation a double-edged sword for firms? The contingent role of ambidextrous learning and TMT shared vision," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    9. Christopher Esposito, 2021. "The Geography of Breakthrough Innovation in the United States over the 20th Century," Papers in Evolutionary Economic Geography (PEEG) 2126, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2021.
    10. Bathelt, Harald & Li, Pengfei, 2020. "Processes of building cross-border knowledge pipelines," Research Policy, Elsevier, vol. 49(3).
    11. Anthony Frigon & David L. Rigby, 2021. "Geographies of Knowledge Sourcing and the Value of Knowledge in Multilocational Firms," Papers in Evolutionary Economic Geography (PEEG) 2132, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2021.
    12. Rodgers, Waymond & Degbey, William Y. & Söderbom, Arne & Leijon, Svante, 2022. "Leveraging international R&D teams of portfolio entrepreneurs and management controllers to innovate: Implications of algorithmic decision-making," Journal of Business Research, Elsevier, vol. 140(C), pages 232-244.
    13. Jürgen Essletzbichler & Manuel Scholz-Wäckerle & Lena Gerdes & Hans-Peter Wieland & Christian Dorninger, 2023. "Geographical evolutionary political economy: linking local evolution with uneven and combined development," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 16(3), pages 543-560.
    14. Pintar, Nico & Scherngell, Thomas, 2022. "The complex nature of regional knowledge production: Evidence on European regions," Research Policy, Elsevier, vol. 51(8).

    More about this item

    Keywords

    Regional economic growth; innovation; networks; buzz and pipelines;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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