Geography Reference
In-Depth Information
diversity both intra-region and interregion (or cluster), it is essential to dis-
tinguish between different forms of regional variety, because they involve
different economic effects. Knowledge will only spill over from one sector
to another when they are complementary in terms of competencies and
capabilities. 2 Hence, related variety is needed in order to enable effective
connections and innovation governance. This is because some degree of
cognitive proximity is required in order to ensure that effective commu-
nication (of both information and knowledge) and interactive learning
takes place, avoiding knowledge and information mis-alignment and/
or cognitive lock-in (Swann 1997; Nooteboom 2000). Thus, it is neither
regional diversity (which may involve too wide a cognitive distance) nor
regional specialization (which may result in a too narrow cognitive base)
per se that stimulate innovation and growth. Rather, local specialization
in related variety is more likely to induce effective interactive learning and
to facilitate the collective coordination of innovation processes (Boschma
2005). As such, the concept of related variety goes beyond the traditional
dichotomy of localization versus diversification externalities. It is not
diversity per se, but diversity 'in what' that matters in accruing benefits to
the region (Boschma and Iammarino 2009).
Furthermore, the agglomeration literature generally does not account
for inter-sectoral linkages across regions, overlooking the fact that new
variety may be brought into the region or cluster through the establish-
ment of extra-local linkages. The economic geography literature is paying
increasing attention to the importance of extra-regional linkages as a
way of preventing regional lock-in (e.g., Bathelt et al. 2004). Some recent
contributions have shown that what seems to matter is to have relation-
ships that bring new knowledge into the region through a wide range of
links (Boschma and Wenting 2007; Boschma et al. 2009; Boschma and
Iammarino 2009; Neffke et al. 2009). This is highly relevant for our pur-
poses here, because as we have seen in Chapter 4, MNEs are one major
channel of new knowledge and capabilities across space. In the long run,
related variety is also a key input for the evolution of the industrial struc-
ture of the region or cluster: new industries grow out of technologically
related industries, in which new firms recombine and exploit the knowl-
edge and skills taken from local related industries.
5.3
MNEs AND SPATIAL CLUSTERING
As is seen in Chapter 3, the type of leader-follower behaviour suggested
by Alchian's framework finds ample empirical support in the common
observation of the clustering of small and medium sized enterprises
Search WWH ::




Custom Search