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

This article outlines the mechanism by which brokerage provides social capital. Opinion and behavior are more homogeneous within than between groups, so people connected across groups are more familiar with alternative ways of thinking and behaving. Brokerage across the structural holes between groups provides a vision of options otherwise unseen, which is the mechanism by which brokerage becomes social capital. I review evidence consistent with the hypothesis, then look at the networks around managers in a large American electronics company. The organization is rife with structural holes, and brokerage has its expected correlates. Compensation, positive performance evaluations, promotions, and good ideas are disproportionately in the hands of people whose networks span structural holes. The between-group brokers are more likely to express ideas, less likely to have ideas dismissed, and more likely to have ideas evaluated as valuable. I close with implications for creativity and structural change.

https://www.jstor.org/stable/pdf/10.1086/421787.pdf

Structural Holes and Good Ideas.

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The Theory of Industrial Organization

The strong bias in favor of domestic securities is a well-documented characteristic of international investment portfolios, yet we show that the preference for investing close to home also applies to portfolios of domestic stocks. Specifically, U.S. investment managers exhibit a strong preference for locally headquartered firms, particularly small, highly levered firms that produce nontraded goods. These results suggest that asymmetric information between local and nonlocal investors may drive the preference for geographically proximate investments, and the relation between investment proximity and firm size and leverage may shed light on several well-documented asset pricing anomalies.

https://www.jstor.org/stable/pdfplus/797987.pdf

Home Bias at Home: Local Equity Preference in Domestic Portfolios

We have used 199 million papers over 5 decades and 21 million patents to demonstrate that teams increasingly dominate solo authors in the production of knowledge Research is increasingly done in teams across nearly all fields Teams typically produce more frequently cited research than individuals do, and this advantage has been increasing over time Teams now also produce the exceptionally high-impact research, even where that distinction was once the domain of solo authors These results are detailed for sciences and engineering, social sciences, arts and humanities, and patents, suggesting that the process of knowledge creation has fundamentally changed

/pdf/the-increasing-dominance-of-teams-in-production-of-knowledge-h591ohwfzk.pdf

The Increasing Dominance of Teams in Production of Knowledge

In recent years, the significance of geography among firms has declined due to the introduction of electronic methods of communication. However, with the increasing presence of the biotechnology industry, with its affiliated university-based scientists, the issue of geography is proposed as a significant issue for consideration. Most notably, researchers cite that the role of the scientist within the firm impacts the geographic proximity between the firm and the scientist. The types of links between scientists and firms are examined, drawing on a database of biotech firms that have issued IPOs. The data analyses indicate that firm proximity is often influenced not only by the scientist's role in the firm, but also by his or her status in the scientific community and by his or her age. Although past studies have cited the relationship between informal knowledge spillovers and proximity, the current research suggests that geographic proximity plays a less significant role when knowledge is transmitted through formal ties between scientists and corporations. Areas of future research are identified, including the impact of factors such as the proximity of other firm locations and research institutions, and how the role of geography differs between regions. (AKP)

Company-Scientist Locational Links: The Case of Biotechnology

This chapter examines the contributions that economists have made to the study of science and the types of contributions the profession is positioned to make in the future. Special emphasis is placed on the public nature of knowledge and characteristics of the reward structure that encourage the production and sharing of knowledge. The role that cognitive and noncognitive resources play in discovery is discussed as well as the costs of resources used in research. Different models for the funding of research are presented. The chapter also discusses scientific labor markets and the extreme difficulty encountered in forecasting the demand for and supply of scientists. The chapter closes with a discussion of the relationship of scientific research to economic growth and suggestions for future research.

http://static.gest.unipd.it/~birolo/didattica11/Materiale_2012/Letture/Materiale_per_studenti_2012/_Economia_della_scienza_e_della_ricerca/Stephan-Economic_of_science.pdf

The Economics of Science

The relationship between age and the publishing productivity of Ph.D. scientists is analyzed using data from the Survey of Doctorate Recipients (National Research Council) and the Science Citation Index. The longitudinal nature of the data allows for the identification of pure aging effects. In five of the six areas studied, life-cycle aging effects are present. Only in particle physics, where scientists often speak of being on a "religious quest," is the indication that scientific productivity is not investment-motivated. Vintage effects are also considered. The expectation that the latest educated are the most productive is not generally supported by the data. Copyright 1991 by American Economic Association.

Research productivity over the life cycle: evidence for academic scientists

The beauty of science may be pure and eternal, but the practice of science costs money. And scientists, being human, respond to incentives and costs, in money and glory. Choosing a research topic, deciding what papers to write and where to publish them, sticking with a familiar area or going into something new--the payoff may be tenure or a job at a highly ranked university or a prestigious award or a bump in salary. The risk may be not getting any of that. At a time when science is seen as an engine of economic growth, Paula Stephan brings a keen understanding of the ongoing cost-benefit calculations made by individuals and institutions as they compete for resources and reputation. She shows how universities offload risks by increasing the percentage of non-tenure-track faculty, requiring tenured faculty to pay salaries from outside grants, and staffing labs with foreign workers on temporary visas. With funding tight, investigators pursue safe projects rather than less fundable ones with uncertain but potentially path-breaking outcomes. Career prospects in science are increasingly dismal for the young because of ever-lengthening apprenticeships, scarcity of permanent academic positions, and the difficulty of getting funded. Vivid, thorough, and bold, How Economics Shapes Science highlights the growing gap between the haves and have-nots--especially the vast imbalance between the biomedical sciences and physics/engineering--and offers a persuasive vision of a more productive, more creative research system that would lead and benefit the world.

Paula E. Stephan

Papers

Company-Scientist Locational Links: The Case of Biotechnology

Company-Scientist Locational Links: The Case of Biotechnology

The Economics of Science

Research productivity over the life cycle: evidence for academic scientists

How Economics Shapes Science