Proximity, geography of innovation and dimensions of space

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Proximity, geography of innovation and dimensions
of space

• Vincent Mangematin
• Nanowinterschool, February, 4-8th, 2008

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Questions and intuitions

• Why geography of innovation important in nano?
• Not a breakthrough innovation from scratch but
• Convergence premium to large areas where
  scientific diversity does exist
• Lessons from biotech Importance of large univ
  or incumbents Vs. Emergence of new locations
• Tensions between large areas and new emerging
  locations based on emerging scientific dynamic
• Necessity to simultaneously think scientific
  dynamic and location of activities
• Understand how and which resources are mobilised
• (large scale facilities, scientific excellence,
  scientific diversity, market, instrumentation
  etc.)

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Questions and intuitions

• Geographic proximity versus the best partner
• Sticky knowledge
• Balance between competence and distance
• Geographic proximity and diversity
• Convergence versus specialisation
• Emergence versus size
• Concentration and diversity of actors

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Geographic proximity versus the best partner

• Most papers examine the role of the regional
  environment as determinants of economic
  development
• Star scientists (Zucker et al. and
  Stephan/Audrescht)
• Argument in terms of co-location. All
  competencies needed are around
• Sticky knowledge (Almeida, von Hippel). Role of
  geographic proximity and informal relationship
• Knowledge at the frontier of the knowledge cannot
  circulate without those who produced that
  knowledge. Almeidas example about patents
  sticky knowledge of von Hippel

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Geographic proximity versus the best partner

• Most papers examine the role of the regional
  environment as determinants of economic
  development
• Local firms, clusters of firms (M. Feldman
  Marshall)
• Local markets
• Complementary assets
• Anchor tenant hypothesis (Agrawal)
• ? Location of activities where large firms are

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Geographic proximity

• Proximity to the source of knowledge
• Mass effects, size of the input (researchers) and
  output (publications)
• Presence of private RD centres within the region
  the example of biotech
• Biotech SMEs are set up in centres of excellence,
  nearby public academic research.
• Biotech SMEs are set up in the regional
  neighbourhood of major firms with substantial
  research potential

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Geographic proximity

• Size of market, specialisation and competition.
• Market proximity leads to more firm creation
• Specialisation leads to more firm creation
• Geographic concentration effects
• The larger the market, the greater the number of
  start-ups.
• Specialization of a region in a sector related to
  nano (electro, bio, chemistry, etc.) stimulates
  the creation of SMEs.
• The intensity of competition in related
  industries reduces firms' propensity to create.

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Effects

• Concentration of biotech start-ups in few
  locations (50 of firms in 4 cities in the US),
  huge concentration in Europe (UK, France,
  Germany, Northern Europe, )
• Self reinforcing effects (Krugman)
• ?Limit competition on resources
• ?Limit by scientific or techno waves
• Sustainability of location?

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Geographic proximity and diversity

• Three dimensions
• Phases of the industry life cycle
• Search regimes (convergence Vs. specialisation)
• Industry/local arrangement

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Geographic proximity and diversity

• 1. Phases of the industry life cycle (emergence
  Vs. Size)
• Influence of co-location differs if the industry
  is in a fluid or transitional phase
• Role of installed basis/dominant design and
  competing trajectories
• Role of incumbents and start-ups (Schumpeter Mark
  I or II)
• Exchanges on market versus alliances
• ? Balance role of geographic proximity

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Geographic proximity and diversity

• 2. Focus how do fluid phases deploy and
  stabilize OR how existing trajectories do change
  after the introduction of nano?
• Afuah and Utterback fluid phase, when
  trajectories are opened
• Radical change or inflexion in Nano, are we in a
  fluid phase?

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How do nano ST differ Five major hypotheses

• Science dynamics new search regime? (cf.
  Bonaccorsi hypothesis)
• Science / engineering linkage individual vs
  distributed IP and the central role of
  demonstrators (Thoma, Bonaccorsi P. Stephan)
• Platform agglomerations and regional
  concentration (Robinson, Rip et al.)
• Emergence from scratch or convergence of
  trajectories (Avenel et al.)
• Toward new organisational / institutional forms?

Bonaccorsi, 2005 (www.prime-noe.org) and 2006
(RP)
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Characterisation of the technologies
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Geographic proximity and diversity

• Organisation and diversity of actors
• Scientific specialisation identification of
  regional specialities, links with absorptive
  capacity
• Local interactions stimulate firm creation within
  the area.
• Regional scientific specialization stimulates
  firm creation .
• Platform agglomeration
• Degree of instrumentation and its critical role.
• Unique platform versus platform agglomeration
• Technological interrelatedness (including human
  capital).

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Geographic proximity and diversity

• Organisation and diversity of actors
• Large firms/SMEs and University patterns of
  collaborations
• Respective role of large and small firms in the
  industry (competition, complementary, etc.). Bio
  versus micro industry model
• IPR and legal/technological protection
• Experience and learning of collaboration
  (engineering, bio)
• B2B Versus B2C markets

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Geographic proximity and diversity

• Dimensions of proximity (R. Boschma)
• Cognitive proximity absorptive capacity trade
  off between cognitive distance and novelty i.e.
  too much homology and too little overlap lock in
  and unvoluntary spillovers
• Organisation proximity interdependencies within
  and between organisation, proximity embodied in
  strong ties, hierarchy or network. Needed to
  control uncertainty and opportunism to create
  knowledge. However, too much proximity leads to
  lock in and lack of flexibility
• Social proximity socially embedded relations
  between agents at the micro level (does not
  include situations in which people shares the
  same vlaues ethnic, religious etc) as it is at
  the macro level. May stimulate interactive
  learning via trust and commitment. Comes with
  geographic proximity as short distances stimulate
  interactions and trust.

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Geographic proximity and diversity

• Dimensions of proximity (R. Boschma)
• Institutional proximity sharing of value and
  norms at the macro level to make life meaningful
  and predictable. May lead to conformism, low
  innovativeness, etc. however, may stimulate
  innovation as culture sharing, easiness in info
  transmission, etc.
• Geographic proximity co-location networks
  spatial lock-in non local linkages

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Geographic proximity and diversity