The partner next door? The effect of micro-geographical proximity on intra-cluster inter-organizational relationships. (March 2022)

• Record Type: Journal Article
• Authors: Ferretti, Marco; Guerini, Massimiliano; Panetti, Eva; Parmentola, Adele
• Is Part Of: Technovation. Volume 111(2022)
• Publication Date: 2022-03
• Subjects: Inter-organizational relationships -- Knowledge transfer -- Venture capital deals -- High-tech clusters -- Micro-geographical proximity; Technological innovations -- Periodicals; Industrial management -- Periodicals; Innovations -- Périodiques; Gestion d'entreprise -- Périodiques; Electronic journals; 658.57
• DOI: 10.1016/j.technovation.2021.102390
• Languages: English
• ISSNs: 0166-4972

Abstract

Abstract: Substantial research has focused on how innovation is influenced by geography from a macro perspective (e.g., at the country, state, or metropolitan level). However, less attention has been paid to how innovation is configured within a cluster from a micro perspective (e.g., at the district or firm level within a city), i.e., the "micro-geographical proximity" within a cluster. With this paper, we aim to "zoom into" a technology cluster to study the role of the inter-organizational micro-geographical proximity for the establishment of knowledge transfer relationships. Specifically, we analyse whether and how the micro-geographical proximity is related to the formation of three different types of inter-organizational relationships: venture capital (VC) deals, intellectual property (IP) transfer agreements, and R&D strategic alliances. We take empirical evidence from the biopharma cluster in the Greater Boston Area. Our findings suggest the importance of micro-geographical proximity for the establishment of VC deals and IP transfer agreements, which emphasizes the importance of adopting a micro-geographical perspective to highlight this "neighbourhood effect", which would not be possible when considering spatial proximity at the macro level. Highlights: We study the role of micro-geographical proximity within a cluster. We take empirical evidence from the biopharma cluster in the Greater Boston Area, U.S. We relate micro-geographical proximity to the formation of three types of collaborative ties. Micro-geographical proximity favors the establishment of VC deals and IP transfer agreements.