Geographical proximity and circulation of knowledge through interfirm relationships

Geographical Proximity and Circulation of Knowledge Through Inter-Firm Cooperation (by Delphine Gallaud and Andr? Torre) - ABSTRACT: The production of scientific and technological innovations has become essential for many firms, but they are seldom in possession of all the necessary knowledge. Firms have recourse to external sources, such as cooperation with other firms or public organizations of research. In this article, we try to provide some answers to the following question. What is the role played by geographical and organized proximities in the context of external acquisitions of knowledge? How can these forms of proximity be used to help solve the conflicts that emerge during of an innovation project? First, we present works on spillovers claiming the importance of geographical proximity for circulation of knowledge. Having explained the relevance of permanent and temporary geographical proximity, we then turn to a discussion of conflicts between cooperators within innovation processes. The empirical study, based on a case study of French biotechnology firms, serves to prove our hypothesis that temporary geographical proximity plays an important role in resolving conflicts between innovators.