Paper to be presented at. DRUID15, Rome, June 15-17, (Coorganized with LUISS)
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- Ophelia Black
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1 Paper to be presented at DRUID15, Rome, June 15-17, 2015 (Coorganized with LUISS) Not too close, not too far. Towards an Empirical Test of the Goldilocks Principle of Non-Geographical Distance in Collaboration Networks for Innovation Rune Dahl Fitjar University of Stavanger Centre for Innovation Research, Business School Franz Huber University Seeburg Castle Business Administration Andrés Rodríguez-pose London School of Economics and Political Science Department of Geography and Environment Abstract It has been argued that not only geographical proximity but also cognitive, organisational, social and institutional proximity may be important for innovation networks. However, excessive proximity can also be harmful as it reduces the scope for learning. Hence, one possible solution is that collaboration with partners for innovation should follow the Goldilocks principle of being not too close and not too far, but occurring at just the right distance. In contrast to previous studies, we measure proximities more directly by asking firm managers about their perception of the distance across each of the dimensions to their most important partner. The data set covers 533 firms with more than ten employees across all industries and all regions of Norway. A first contribution is that the results tend to confirm the basic proposition of the Goldilocks principle that for product innovation, a medium level of distance to partners outperforms collaboration at both lower and higher levels of distance. Subsequently, we examine the relationship between geographical and non-geographical proximity dimensions. There is a significant degree of interaction, whereby firms with a low level of geographical proximity and higher levels of cognitive and institutional proximity are significantly more likely to innovate.
2 This supports the theoretical perspective of a substitution mechanism, whereby geographical distance can be compensated by proximity in another dimension. There is no empirical support for an overlap mechanism, as the combination of high geographical proximity and high non-geographical proximity does not show a positive association with innovation. Jelcodes:O31,R00
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