Boschma R. A. (2005) Proximity and innovation: a critical assessment, Regional Studies39, 61-74. A key issue in economic geography is to determine the impact of geographical proximity on interactive learning and innovation. We argue that the importance of geographical proximity cannot be assessed in isolation, but should always be examined in relation to other dimensions of proximity that may provide alternative solutions to the problem of coordination. We claim that geographical proximity per se is neither a necessary nor a sufficient condition for learning to take place. Nevertheless, it facilitates interactive learning, most likely by strengthening the other dimensions of proximity. However, proximity may also have negative impacts on innovation due to the problem of lock-in. Accordingly, not only too little, but also too much proximity may be detrimental to interactive learning and innovation. This may be the case for all five dimensions of proximity discussed in the paper, i.e. cognitive, organizatio...

Proximity and Innovation: A Critical Assessment

The paper is concerned with spatial clustering of economic activity and its relation to the spatiality of knowledge creation in interactive learning processes. It questions the view that tacit knowledge transfer is confined to local milieus whereas codified knowledge may roam the globe almost frictionlessly. The paper highlights the conditions under which both tacit and codified knowledge can be exchanged locally and globally. A distinction is made between, on the one hand, the learning processes taking place among actors embedded in a community by just being there dubbed buzz and, on the other, the knowledge attained by investing in building channels of communication called pipelines to selected providers located outside the local milieu. It is argued that the co-existence of high levels of buzz and many pipelines may provide firms located in outward-looking and lively clusters with a string of particular advantages not available to outsiders. Finally, some policy implications, stemming from this argumen...

/pdf/clusters-and-knowledge-local-buzz-global-pipelines-and-the-29bsuyvekg.pdf

Clusters and knowledge: local buzz, global pipelines and the process of knowledge creation

Social Network Analysis

How have Japanese companies become world leaders in the automotive and electronics industries, among others? What is the secret of their success? Two leading Japanese business experts, Ikujiro Nonaka and Hirotaka Takeuchi, are the first to tie the success of Japanese companies to their ability to create new knowledge and use it to produce successful products and technologies. In The Knowledge-Creating Company, Nonaka and Takeuchi provide an inside look at how Japanese companies go about creating this new knowledge organizationally. The authors point out that there are two types of knowledge: explicit knowledge, contained in manuals and procedures, and tacit knowledge, learned only by experience, and communicated only indirectly, through metaphor and analogy. U.S. managers focus on explicit knowledge. The Japanese, on the other hand, focus on tacit knowledge. And this, the authors argue, is the key to their success--the Japanese have learned how to transform tacit into explicit knowledge. To explain how this is done--and illuminate Japanese business practices as they do so--the authors range from Greek philosophy to Zen Buddhism, from classical economists to modern management gurus, illustrating the theory of organizational knowledge creation with case studies drawn from such firms as Honda, Canon, Matsushita, NEC, Nissan, 3M, GE, and even the U.S. Marines. For instance, using Matsushita's development of the Home Bakery (the world's first fully automated bread-baking machine for home use), they show how tacit knowledge can be converted to explicit knowledge: when the designers couldn't perfect the dough kneading mechanism, a software programmer apprenticed herself withthe master baker at Osaka International Hotel, gained a tacit understanding of kneading, and then conveyed this information to the engineers. In addition, the authors show that, to create knowledge, the best management style is neither top-down nor bottom-up, but rather what they call "middle-up-down," in which the middle managers form a bridge between the ideals of top management and the chaotic realities of the frontline. As we make the turn into the 21st century, a new society is emerging. Peter Drucker calls it the "knowledge society," one that is drastically different from the "industrial society," and one in which acquiring and applying knowledge will become key competitive factors. Nonaka and Takeuchi go a step further, arguing that creating knowledge will become the key to sustaining a competitive advantage in the future. Because the competitive environment and customer preferences changes constantly, knowledge perishes quickly. With The Knowledge-Creating Company, managers have at their fingertips years of insight from Japanese firms that reveal how to create knowledge continuously, and how to exploit it to make successful new products, services, and systems.

The knowledge-creating company

This handbook looks to provide academics and students with a comprehensive and holistic understanding of the phenomenon of innovation. Innovation spans a number of fields within the social sciences and humanities: Management, Economics, Geography, Sociology, Politics, Psychology, and History. Consequently, the rapidly increasing body of literature on innovation is characterized by a multitude of perspectives based on, or cutting across, existing disciplines and specializations. Scholars of innovation can come from such diverse starting points that much of this literature can be missed, and so constructive dialogues missed. The editors of The Oxford Handbook of Innovation have carefully selected and designed twenty-one contributions from leading academic experts within their particular field, each focusing on a specific aspect of innovation. These have been organized into four main sections, the first of which looks at the creation of innovations, with particular focus on firms and networks. Section Two provides an account of the wider systematic setting influencing innovation and the role of institutions and organizations in this context. Section Three explores some of the diversity in the working of innovation over time and across different sectors of the economy, and Section Four focuses on the consequences of innovation with respect to economic growth, international competitiveness, and employment. An introductory overview, concluding remarks, and guide to further reading for each chapter, make this handbook a key introduction and vital reference work for researchers, academics, and advanced students of innovation. Contributors to this volume - Jan Fagerberg, University of Oslo William Lazonick, INSEAD Walter W. Powell, Stanford University Keith Pavitt, SPRU Alice Lam, Brunel University Keith Smith, INTECH Charles Edquist, Linkoping David Mowery, University of California, Berkeley Mary O'Sullivan, INSEAD Ove Granstrand, Chalmers Bjorn Asheim, University of Lund Rajneesh Narula, Copenhagen Business School Antonello Zanfei, Urbino Kristine Bruland, University of Oslo Franco Malerba, University of Bocconi Nick Von Tunzelmann, SPRU Ian Miles, University of Manchester Bronwyn Hall, University of California, Berkeley Bart Verspagen , ECIS Francisco Louca, ISEG Manuel M. Godinho, ISEG Richard R. Nelson, Mario Pianta, Urbino Bengt-Ake Lundvall, Aalborg

The Oxford Handbook of Innovation

This paper argues that face-to-face communication and buzz are becoming increasingly important in the regionalizing le arning economy. This reflects the importance of inn ovations as a means of enhancing regional competitiveness. While concurring with the new streams of literature in geography highlighting the importance of face-to-face and buzz, it is argued that this lite rature is misleading on three interrelated accounts. Firstly, it conflates face-to-face and buzz by e.g. looking at buzz as the result of positive effects of face-to-face. Secondly, it fails to distinguish between the importance of respectively face-to-face and buzz for industries drawing on different knowledge bases; being analytical, synthetic and symbolic. Thirdly, these conceptual inadequacies lead to exaggerating the importance of cities as sites for creation of innovations, hence regional competitiveness. Through unpacking the distinctions between face-to-face and buzz and applying an industrial knowledge base approach we seek to reconstruct an alternative framework that allows for a systematic differentiation between the importance of both face-to- face and buzz for industries drawing on the different knowledg e-bases. This provides a frame work for developing more realistic locational predictions, with respect to the attractiveness of cities and regions as sites for generating regional competitiveness.

Talents and Innovative Regions: exploring the Importance of Face-to-Face Communication and Buzz

Different creative cities: exploring Danish data to adapt the creative class argument to small welfare economies

The paper engages in a critical discussion of the related variety – regional branching argument and foregrounds a more differentiated perspective on regional industrial path development. It contributes by i) sharpening the definition of key concepts, namely specialisation and diversity, related and unrelated variety, ii) discussing their relevance in local and non-local spaces, iii) scrutinizing related variety as source for regional branching, and iv) developing a conceptual framework capturing the opportunity space for regional structural change that unveils the relevance of path upgrading, path importation, path branching, path diversification, and new path creation as different forms of new path development.

Unrelated knowledge combinations: Unexplored potential for regional industrial path development

Many countries in the developed world are currently experiencing low rates of economic growth, which is furthermore regionally and socially unequal. This increasing inequality seems to have deepened during the Corona crisis. When economic policies are discussed in these demanding times, the strategic question remains whether the best strategy is to seek to bounce back to the 'old normal', or to use this critical time as a conjuncture to departure on a development path to a 'new normal' that is more innovative, sustainable, and inclusive. In light of this, the main aim of this paper is to look for new perspectives on theory and policy with important implications for promoting the most radical forms of industrial path development, viz. path diversification based on unrelated knowledge combinations and new path creation, securing the adaptability of an economy to become more resilient.

/pdf/regional-innovation-strategy-for-resilience-and-4v49ploryf.pdf

Regional innovation strategy for resilience and transformative industrial path development: Evolutionary theoretical perspectives on innovation policy

This paper provides an overview of the Swedish innovation system and the main strategies for Swedish innovation policy, with specific focus on VINNOVAs place-based support to specialised areas integrating competences from different sectors in society The overview reveals a recent shift from place-based specialisation to thematic areas underpinned by a societal challenge driven logic to policy intervention The analysis indicates that a strong focus on R&D and science-driven innovation serves as a barrier for successful transition, and that the recent shift implies a greater need for policy coordination across different fields and scales This makes agencies like VINNOVA less autonomous with regard to design as well as implementation of innovation policy and points to the need for reaching a balance between demand-oriented and supply-led strategies in which place-specific context matters and innovation policy must be attuned to and embedded in the particularities of the regional and national economies it aims to target Linking smart specialisation strategies (S3), EUs overall industrial and innovation policy for regional diversification and restructuring, with VINNOVAs new system innovation policy approach would be one way of doing this

Björn Asheim

Papers

Talents and Innovative Regions: exploring the Importance of Face-to-Face Communication and Buzz

Different creative cities: exploring Danish data to adapt the creative class argument to small welfare economies

Unrelated knowledge combinations: Unexplored potential for regional industrial path development

Regional innovation strategy for resilience and transformative industrial path development: Evolutionary theoretical perspectives on innovation policy

Innovation policy for economic resilience: The case of Sweden