The role of geographical proximity for project performance: evidence from the German Leading-Edge Cluster Competition

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThe role of geographical proximity in fostering connections and knowledge flows between innovative actors ranks among the most controversial themes in the research of innovation systems, regional networks and new economic geography. While there is ample empirical evidence on the constituent force of co-location for the formation of research alliances, little attention has been paid to the actual consequences of geographical concentration of alliance partners for the subsequent performance of these linkages. In this paper we address this underexplored issue and aim to complement the rare examples of studies on the relevance of geographical proximity for research outputs. We utilize original and unique survey data from collaborative R&D projects that were funded within the "Leading-Edge Cluster Competition" -the main national cluster funding program in Germany in recent years. We find that the perception of the necessity of spatial proximity for project success is rather heterogeneous among the respondents of the funded projects. Moreover, the relationship between geographical distance and project success is by no means univocal and is mediated by various technological, organizational and institutional aspects. Our findings strongly support the assumption that the nature of knowledge involved determines the degree to which collaborators are reliant on being closely located to each other. The relevance of spatial proximity increases in exploration contexts when knowledge is novel and the innovation endeavor is more radical while this effect is less pronounced for projects with a stronger focus on basic research. Moreover, geographical proximity and project satisfaction foster crossfertilization effects of LECC projects.

Cluster role in industry 4.0 – a pilot study from Germany

“…These positive external scale effects owing to the spatial concentration of companies lead to cost reduction and revenue increase (Barrios et al, 2006;Barry et al, 2003;Basile et al, 2003;Belderbos and Carree, 2002;Cie slik, 2004;Coughlin et al, 1991;Coughlin and Segev, 1997;Crozet et al, 2003;Guimaraes et al, 2000;Head et al, 1999;Hilber and Voicu, 2007;Kinoshita and Campos, 2004). Proximity derived benefits are of utmost importance when knowledge is new and innovations more radical, which seems to be the case for I4.0 (Hinzmann et al, 2019).The new study by Hervas-Oliver et al (2019a) argues that some isomorphism inherent to clusters may, in fact, contribute to the advancement of I.40. Collective understanding of the paradigm, supportive infrastructure, education in the new technology can help avoiding cognitive inertia and contribute to digital transformation.…”

Why are there so few hard facts about the impact of cluster policies in Germany? A critical review of evaluation studies

“…Some of the academic researchers using quantitative methods to investigate cluster policies create their own data bases or data collections during their involvement in commissioned evaluation projects (e.g. Cantner et al 2013;Engel et al 2017;Engel et al 2015;Hinzmann et al 2017;Engel et al 2013;Fromhold-Eisebith and Eisebith 2008a, b;Dohse 2000Dohse , 2005Dohse , 2007Dohse and Staehler 2008). Other researchers make use of information collected in academic studies (e.g.…”

A contingency view of alliance management capabilities for innovation in the biotech industry

“…Geographic diversity refers to the degree to which a firm’s alliance partners are located in geographically diverse settings (Terjesen et al, 2011). Although some authors defend the relevance of geographical proximity in fostering radical innovations (Hinzmann et al, 2018), the literature clearly supports the potential offered by geographic diversity, rather than proximity, among partners. The reasons are manifold.…”