In this paper explore the relationships between rivalry and geographical proximity at the very level of contacts between individual firms. In particular, we wish to highlight the influence of geographical proximity on rival identification, on the comparison of their knowledge, and on the consequent elaboration of a strategy. In order to reproduce the interactions between firms, we made use of an agent-based model (ABM) where the strategic choices of rival firms are derived from general assumptions on competitive behavior and learning processes. Aim of the model is to investigate the co-evolution of firms' knowledge, strategies and performances. Substantial empirical evidences claim that firms located in geographical clusters are more likely to learn and innovate than isolated firms.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
13066.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Andre Torre & Alain Rallet, 2005.
"Proximity and Localization,"
Regional Studies,
Taylor and Francis Journals, vol. 39(1), pages 47-59, January.
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