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Proximate (Co-)Working: Knowledge Spillovers and Social Interactions

Author

Listed:
  • Maria P. Roche

    (Harvard Business School, Harvard University, Boston, Massachusetts 02163)

  • Alexander Oettl

    (Scheller College of Business, Georgia Institute of Technology, Atlanta, Georgia 30308; National Bureau of Economic Research, Cambridge, Massachusetts 02138)

  • Christian Catalini

    (MIT Sloan School of Management and MIT Cryptoeconomics Lab, Cambridge, Massachusetts 02142)

Abstract

We examine the influence of physical proximity on between-start-up knowledge spillovers at one of the largest technology coworking hubs in the United States. Relying on the exogenous assignment of office space to the hub’s 251 start-ups, we find that proximity positively influences knowledge spillovers as proxied by the likelihood of adopting an upstream web technology already used by a peer start-up. This effect is largest for start-ups within close proximity of each other and quickly decays; start-ups more than 20 meters apart on the same floor are indistinguishable from start-ups on different floors. The main driver of the effect appears to be social interactions. Although start-ups in close proximity are most likely to participate in social coworking space events together, knowledge spillovers are greatest between start-ups that socialize but are dissimilar. Ultimately, start-ups that are embedded in environments that have neither too much nor too little diversity perform better but only if they socialize.

Suggested Citation

  • Maria P. Roche & Alexander Oettl & Christian Catalini, 2024. "Proximate (Co-)Working: Knowledge Spillovers and Social Interactions," Management Science, INFORMS, vol. 70(12), pages 8245-8264, December.
    • Handle: RePEc:inm:ormnsc:v:70:y:2024:i:12:p:8245-8264
    DOI: 10.1287/mnsc.2022.03555
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