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Nothing is in the air

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  • Fitjar, Rune Dahl
  • Rodríguez-Pose, Andrés

Abstract

It has often been argued that “there is something in the air” which makes firms in high-density environments—such as cities or clusters—more innovative. The co-location of firms facilitates the emergence of serendipity and casual encounters which promote innovation in firms. We assess this hypothesis using data from a survey of Norwegian firms engaged in innovation partnerships. The results indicate that there may be “much less in the air” than is generally assumed in the literature. The relationships conducive to innovation by Norwegian firms emerged as a consequence of purpose-built searches and had little to do with chance, serendipity, or “being there.”

Suggested Citation

  • Fitjar, Rune Dahl & Rodríguez-Pose, Andrés, 2017. "Nothing is in the air," LSE Research Online Documents on Economics 84287, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:84287
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    More about this item

    Keywords

    innovation; tacit knowledge; agglomeration; externalities; spillovers; Norway;
    All these keywords.

    JEL classification:

    • N0 - Economic History - - General
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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