We examine the evolution of biotechnology clusters in germany between 1996 and 2003, paying particular attention to their composition in terms of venture capital, basic science institutions, and biotechnology firms. drawing upon the significance of co-location of "money and ideas", the literature stressing the importance of a cluster's openness and external linkages, and the path dependency debate, we analyze how certain cluster characteristics correspond with each cluster's overall performance. after defining different cluster types, we explore and compare the clusters' internal and external interconnectivity, and investigate the extent to which the clusters' structural composition has changed over time. our results indicate that the structure, i.e., the type of cluster, and the cluster's openness towards receiving external knowledge provide merely unsystematic indications of a cluster's overall success. the cluster's ability to modify its composition to a more balanced ratio of science and capital over time, in contrast, turns out to be a key explanatory factor. Jel-classification: l22, o18, o32.
Successful innovation depends on the management of a firm's knowledge base. This paper empirically investigates the determinants of knowledge regulation. Using a unique survey dataset, the analysis suggests that research and development managers do not leak knowledge randomly, but rather regulate knowledge consciously. I find that the source and the channel of knowledge inflows impact knowledge regulation. The findings reveal that the more a firm profits from knowledge inflows from competitors, the fewer actions it takes to regulate outgoing knowledge. I do not find that the extent of knowledge inflows from collaborating firms impacts knowledge regulation. However, the type of channel being used to acquire knowledge matters. Compared with public channels, the different types of private channels used to access knowledge inflow and the type of the competitive relationship influence the firms' decision to regulate knowledge outflow in the following way: concerning relationships with competitors, firms regulate knowledge outflow more when using formal channels, but less when using informal channels; concerning collaborative relationships, firms regulate knowledge outflow less regardless of whether they are using formal or informal private channels compared with using public channels. Presumably, firms that acquire knowledge from competing firms through formal private channels try to establish opaque and soundproof fences to surround them, whereas firms that acquire knowledge from collaborating firms through formal or informal private channels do not want to restrict circulation, but rather facilitate inter‐firm knowledge exchange.
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