Innovation and informal knowledge exchanges between firms

Abstract

Firm clusters are seen as having a positive effect on innovations, what can be interpreted as economies of scale or knowledge spillovers. The processes underlying the success of these clusters remain difficult to isolate. We propose in this paper a stylised agent-based model to test the role of geographical proximity and informal knowledge exchanges between firms on the emergence of innovations. The model is run on synthetic firm clusters. Sensitivity analysis and systematic model exploration unveil a strong impact of interaction distance on innovations, with a qualitative shift when spatial interactions are more intense. Model bi-objective optimisation shows a compromise between innovation and product diversity, suggesting trade-offs for clusters in practice. This model provides thus a first basis to systematically explore the interplay between firm cluster geography and innovation, from an evolutionary perspective.

Bridging the gap: unleashing the power of non-core departments through interdepartmental collaboration

“…This conceptualization is informed by Raimbault (2022) work, which highlights the role of informal knowledge exchanges and interactions between diverse firms in fostering innovation. Raimbault’s findings suggest that the interaction between diverse entities and knowledge output can lead to a synergistic effect, enhancing the overall innovation process.…”