Industrial and knowledge relocation strategies under the challenges of globalization and digitalization: the move of small and medium enterprises among territorial systems

Knowledge, Location, and Internationalization: Empirical Evidence for Manufacturing SMEs

“…Indeed, production processes of knowledge-intensive goods clearly involve a higher content of tacit knowledge than those of simple goods. Thus, running the company's 'thinking part' (i.e., R&D) in the home region, separate from production in foreign locations is associated with higher control costs in the case of knowledge-intensive goods (Anderson and Gatignon 1986;Biggiero 2006;Buckley and Casson 1976;Williamson 1975Williamson , 1979.…”

“…Since the extant literature on firm internationalization rarely examines relocation abroad as a form of international activity, we review some basic facts about this issue in the following: Relocation strategies refer to transferring firm activities among regions and countries (Biggiero 2006;Sammarra 2005). Selective relocation addresses the capability of firms to select operations among the phases of production cycle or the functional activities-but only those that allow firms to achieve substantial and long-lasting benefits-and shift these activities to foreign locations.…”

“…On the other hand, however, one should keep in mind that knowledge and innovation creation processes tend to be local phenomena (e.g., Audretsch 2000; Aydalot and Keeble 1988;Biggiero 2006;Campagni 1991;Cooke 2002;Gordon andMcCann 2000, Keeble et al 1998;Storper 1995b). In fact, obviously, it is the R&D activity-rather than activities related to the output of the innovation process-that is dependent upon and embedded within local milieu, including universities, public and private research laboratories, training and venture capital organizations, as well as regional authorities.…”

“…1 Moreover, since regional outcome can be derived from the activities and performance of the various economic actors operating within the region (Britton 2004;Oerlemans et al 2001;Rees and Stafford 1986), the chosen mode of international engagement by firms can clearly affect the development and performance of regions, as well (e.g., Biggiero 2006;deMartino et al 2006). …”

“…Traditionally, clusters or industrial districts (IDs) are acknowledged as an organisational model that enables firms to discover and develop 2 Replicative relocation implies the move of all firm operations and activities from its source location to a foreign destination location (Biggiero 2006, Sammarra 2005. Firms implementing the strategy of replicative relocation tend to be clearly oriented to and/or favoured of the localization advantages from the destination location.…”