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The virtual is reality! On physical and virtual space in software firms’ knowledge formation

Author

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  • Heidi Wiig Aslesen
  • Roman Martin
  • Stefania Sardo

Abstract

To understand how knowledge is created and exchanged, it is necessary to unwrap the role played by the physical and virtual spaces. The extant research offers interesting findings when it comes to the relationships among regional, institutional and organizational characteristics, innovation and firms’ abilities to link up to global knowledge sources. A focus on the role of informal and low-cost mechanisms, both regional and global, has extended our understanding of their role in knowledge formation. However, the physical space has dominated this literature to the detriment of the virtual space. The inclusion of the virtual space, both as an interaction space and as a different and complementary dimension, makes it possible to gain new insights into knowledge formation in a digitalizing world. Based on in-depth interviews with small- and medium-sized software companies in two urban agglomerations in Norway and Sweden, this paper explores the use of physical and virtual spaces. The findings show that these spaces interact and mutually influence each other. The world is not ‘flattening’ due to ongoing digitalization; moreover, urban agglomerations are still important places in which these spaces are optimized and unified.

Suggested Citation

  • Heidi Wiig Aslesen & Roman Martin & Stefania Sardo, 2019. "The virtual is reality! On physical and virtual space in software firms’ knowledge formation," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 31(9-10), pages 669-682, October.
    • Handle: RePEc:taf:entreg:v:31:y:2019:i:9-10:p:669-682
    DOI: 10.1080/08985626.2018.1552314
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    Cited by:

    1. Xu Chen & Chunhong Liu & Yao Jiang & Changchun Gao, 2021. "What Causes the Virtual Agglomeration of Creative Industries?," Sustainability, MDPI, vol. 13(16), pages 1-18, August.
    2. Mercedes Gumbau-Albert, 2024. "Understanding the Impact of Intangible Capital on Entrepreneurship at the Regional Level," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 11063-11089, September.
    3. Xu Chen & Chunhong Liu & Changchun Gao & Yao Jiang, 2021. "Mechanism Underlying the Formation of Virtual Agglomeration of Creative Industries: Theoretical Analysis and Empirical Research," Sustainability, MDPI, vol. 13(4), pages 1-21, February.
    4. Han Chu & Robert Hassink, 2023. "Advancing spatial ontology in evolutionary economic geography," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 16(3), pages 391-404.
    5. Tran, Chi Phuong & Pernia, Ronald A. & Nguyen-Thanh, Nhan, 2023. "Mess or match? How do academic perspectives meet the practitioner perspectives in terms of digital transformation?," Technological Forecasting and Social Change, Elsevier, vol. 191(C).

    More about this item

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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