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The cognitive and geographical composition of ego-networks of firms – and how they impact on their innovation performance

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  • Tom Broekel
  • Ron Boschma

Abstract

Firms’ embeddedness into knowledge networks has received much attention in the literature. However, little is known about the composition of firms’ ego-networks with respect to different types of proximities. Based on survey data of 295 firms in eight European regions, we show that the ego-networks of firms systematically differ in their geographical and cognitive embeddedness. We find that firms’ innovation performance is stimulated if the firm primarily links to technologically related firms as well as technologically similar organizations. Connecting with organizations at different geographical levels yields positive effects as well.

Suggested Citation

  • Tom Broekel & Ron Boschma, 2011. "The cognitive and geographical composition of ego-networks of firms – and how they impact on their innovation performance," Papers in Evolutionary Economic Geography (PEEG) 1118, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2011.
    • Handle: RePEc:egu:wpaper:1118
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    File URL: http://econ.geo.uu.nl/peeg/peeg1118.pdf
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    References listed on IDEAS

    as
    1. Rolf Sternberg & Olaf Arndt, 2001. "The Firm or the Region: What Determines the Innovation Behavior of European Firms?," Economic Geography, Taylor & Francis Journals, vol. 77(4), pages 364-382, October.
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    3. Tom Broekel & Ron Boschma, 2012. "Knowledge networks in the Dutch aviation industry: the proximity paradox," Journal of Economic Geography, Oxford University Press, vol. 12(2), pages 409-433, March.
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    11. Corey C. Phelps, 2010. "A longitudinal study of the influence of alliance network structure and composition on firm exploratory innovation," Post-Print hal-00528392, HAL.
    12. Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
    13. Andre Torre & Alain Rallet, 2005. "Proximity and Localization," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 47-59.
    14. Cribari-Neto, Francisco & Zeileis, Achim, 2010. "Beta Regression in R," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 34(i02).
    15. Anne Ter Wal & Ron Boschma, 2009. "Applying social network analysis in economic geography: framing some key analytic issues," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(3), pages 739-756, September.
    16. Harald Bathelt & Andersand Malmberg & Peter Maskell, 2002. "Clusters and Knowledge Local Buzz, Global Pipelines and the Process of Knowledge Creation," DRUID Working Papers 02-12, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
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    18. Roderik Ponds & Frank Van Oort & Koen Frenken, 2007. "The geographical and institutional proximity of research collaboration," Papers in Regional Science, Wiley Blackwell, vol. 86(3), pages 423-443, August.
    19. Stefano Breschi & Francesco Lissoni, 2003. "Mobility and Social Networks: Localised Knowledge Spillovers Revisited," KITeS Working Papers 142, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Mar 2003.
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    Cited by:

    1. Pinar Ozcan, 2018. "Growing with the market: How changing conditions during market growth affect formation and evolution of interfirm ties," Strategic Management Journal, Wiley Blackwell, vol. 39(2), pages 295-328, February.
    2. Rune Dahl Fitjar & Franz Huber & Andrés Rodríguez-Pose, 2016. "Not too close, not too far: testing the Goldilocks principle of ‘optimal’ distance in innovation networks," Industry and Innovation, Taylor & Francis Journals, vol. 23(6), pages 465-487, August.
    3. Cathrin Söllner & Dirk Fornahl, 2021. "Unleashing Inventive Power - Solving cognitive, social and geographic distance issues with cultural proximity," Bremen Papers on Economics & Innovation 2103, University of Bremen, Faculty of Business Studies and Economics.
    4. Horváth, Márton & Hau-Horváth, Orsolya, 2014. "A földrajzi közelség szerepe az innovációs együttműködésekben - illúzió vagy valós tényező?. Szakirodalmi áttekintés [The role of geographical proximity in efforts to cooperate on innovation - illu," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1419-1446.
    5. Sidonia Proff & Thomas Brenner, 2014. "The dynamics of inter-regional collaboration: an analysis of co-patenting," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(1), pages 41-64, January.
    6. Christoph Roesler & Tom Broekel, 2017. "The role of universities in a network of subsidized R&D collaboration: The case of the biotechnology-industry in Germany," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 37(2), pages 135-160, October.

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    More about this item

    Keywords

    ego-networks; geographical proximity; innovation performance; knowledge networks; technological relatedness;
    All these keywords.

    JEL classification:

    • B15 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Historical; Institutional; Evolutionary
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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