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Spatial Proximity and Complementarities in the Trading of Tacit Knowledge

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  • Neslihan Aydogan

    (University of Maastricht)

  • Thomas P. Lyon

    (Kelley School of Business)

Abstract

We model knowledge-trading coalitions in which the transfer of tacit knowledge is unverifiable and requires face-to-face contact, making spatial proximity important. When there are sufficient “complementarities” in knowledge exchange, successful exchange is facilitated if firms can meet in a central location,thereby economizing on travel costs. When complementarities are small,however, a central location may be undesirable because it is more vulnerable to cheating than a structure involving bilateral travel between firms. We believe that our framework may help explain the structure and stability of multimember technology trading coalitions such as Sematech and Silicon Valley.

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File URL: http://128.118.178.162/eps/mic/papers/0404/0404004.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Microeconomics with number 0404004.

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Length: 38 pages
Date of creation: 14 Apr 2004
Date of revision:
Handle: RePEc:wpa:wuwpmi:0404004

Note: Type of Document - pdf; pages: 38
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Web page: http://128.118.178.162

Related research

Keywords: Tacit Knowledge; Clusters; Knowledge Trading; Complementarities. Spatial Proximity;

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Citations

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Cited by:
  1. Liang, Lin & Lin, Shanglang & Li, Yong, 2014. "How agglomeration in the financial services industry influences economic growth: Evidence from Chinese cities," Economics Discussion Papers 2014-6, Kiel Institute for the World Economy.
  2. Ana Paula Faria & Natália Barbosa & Vasco Eiriz, 2013. "Firms’ innovation across regions: an exploratory study," NIPE Working Papers 12/2013, NIPE - Universidade do Minho.
  3. Aydogan, Neslihan & Lyon, Thomas P., 2004. "Spatial proximity and complementarities in the trading of tacit knowledge," International Journal of Industrial Organization, Elsevier, vol. 22(8-9), pages 1115-1135, November.
  4. Nobuaki Hamaguchi & Yoshihiro Kameyama, 2006. "Communication Externalities on the Knowledge-based Firms in Metropolitan Areas: Case Study of China and Korea," Discussion Paper Series 182, Research Institute for Economics & Business Administration, Kobe University.

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