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Proximity and power in collaborative innovation projects AbstractThe proximity literature has so far paid little attention to power relations in collaborative innovation projects. This paper draws on contributions from international business to examine if power constellations between collaborators in innovation projects influence the effects of proximity. An analysis of two cases of collaborations between headquarters and subsidiaries of multinational companies highlights that specific power constellations indeed influence the effects of proximity. While some forms of proximity allow subsidiary-specific capabilities to diffuse throughout the organisation and pose a threat to the powerful subsidiary, the weaker subsidiary considers proximity as a possibility to learn from the headquarters.

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