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Beyond Regional Clusters: On the Importance of Geographical Proximity for R&D Collaborations in a Global Economy—the Case of the Flemish Biotech Sector

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  • Andrea Monika Herrmann
  • Janne Louise Taks
  • Ellen Moors

Abstract

When internal knowledge bases are insufficient for developing innovations, companies tend to collaborate with external R&D partners. According to a long-standing literature on “clusters”, “industrial districts”, “local production systems” and “regional innovation systems”, geographical proximity between innovation partners is considered a precondition for inter-organizational collaborations: proximity is said to facilitate trust, the transfer of tacit knowledge and the intensity of interactions. This article investigates the importance of geographical proximity for R&D collaborations between biotech firms and their innovation partners. Are geographically close innovation partners likely to collaborate more intensely? Studies of the Flemish biotech industry shed light on this question. Regression analyses combined with qualitative interview data reveal that geographical proximity has become less important for inter-organizational collaborations. Owing to lower communication and transportation costs, innovation partners can easily collaborate even when they are not situated close to each other. This leads us to conclude that globalization transforms inter-organizational collaborations.

Suggested Citation

  • Andrea Monika Herrmann & Janne Louise Taks & Ellen Moors, 2012. "Beyond Regional Clusters: On the Importance of Geographical Proximity for R&D Collaborations in a Global Economy—the Case of the Flemish Biotech Sector," Industry and Innovation, Taylor & Francis Journals, vol. 19(6), pages 499-516, August.
    • Handle: RePEc:taf:indinn:v:19:y:2012:i:6:p:499-516
    DOI: 10.1080/13662716.2012.718876
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    References listed on IDEAS

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    1. Crouch, Colin & Gales, Patrick Le & Trigilia, Carlo & Voelzkow, Helmut, 2001. "Local Production Systems in Europe: Rise or Demise?," OUP Catalogue, Oxford University Press, number 9780199242511.
    2. Herrmann, Andrea M., 2008. "One Political Economy, One Competitive Strategy?: Comparing Pharmaceutical Firms in Germany, Italy, and the UK," OUP Catalogue, Oxford University Press, number 9780199543434.
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    Cited by:

    1. Jarle Aarstad & Olav Andreas Kvitastein & Stig-Erik Jakobsen, 2019. "What Drives Enterprise Product Innovation? Assessing How Regional, National, And International Inter-Firm Collaboration Complement Or Substitute For R&D Investments," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(05), pages 1-25, June.
    2. Figueiredo, Paulo N. & Larsen, Henrik & Hansen, Ulrich E., 2020. "The role of interactive learning in innovation capability building in multinational subsidiaries: A micro-level study of biotechnology in Brazil," Research Policy, Elsevier, vol. 49(6).
    3. Rune Dahl Fitjar & Franz Huber & Andrés Rodríguez-Pose, 2016. "Not too close, not too far: testing the Goldilocks principle of ‘optimal’ distance in innovation networks," Industry and Innovation, Taylor & Francis Journals, vol. 23(6), pages 465-487, August.
    4. Ferretti, Marco & Guerini, Massimiliano & Panetti, Eva & Parmentola, Adele, 2022. "The partner next door? The effect of micro-geographical proximity on intra-cluster inter-organizational relationships," Technovation, Elsevier, vol. 111(C).
    5. Zhao, Shu Liang & Song, Wei & Zhu, Dong Yun & Peng, Xiao Bao & Cai, Wenjing, 2013. "Evaluating China's regional collaboration innovation capability from the innovation actors perspective—An AHP and cluster analytical approach," Technology in Society, Elsevier, vol. 35(3), pages 182-190.
    6. Tom Broekel & Marcel Bednarz, 2018. "Disentangling link formation and dissolution in spatial networks: An Application of a Two-Mode STERGM to a Project-Based R&D Network in the German Biotechnology Industry," Networks and Spatial Economics, Springer, vol. 18(3), pages 677-704, September.
    7. Delorme, Donatienne, 2023. "The role of proximity in the design of innovation intermediaries' business models," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    8. Wanyue Wei & Zheng He & Lez Rayman-Bacchus & GuangMing Xiang, 2019. "Do Industrial Clusters Still Matter to Trust-Building in the Internet Era? A Network Embeddedness Perspective," SAGE Open, , vol. 9(3), pages 21582440198, August.

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