Not too close, not too far: testing the Goldilocks principle of ‘optimal’ distance in innovation networks

Abstract

This paper analyses how the formation of collaboration networks affects firm-level innovation by applying the 'Goldilocks principle'. The 'Goldilocks principle' of optimal distance in innovation networks postulates that the best firm-level innovation results are achieved when the partners involved in the network are located at the 'right' distance, i.e. 'not too close and not too far' from one another, across non-geographical proximity dimensions. This principle is tested on a survey of 542 Norwegian firms conducted in 2013, containing information about firm-level innovation activities and key innovation partners. The results of the ordinal logit regression analysis substantiate the Goldilocks principle, as the most innovative firms are found amongst those that collaborate with partners at medium levels of proximity for all non-geographical dimensions. The analysis also underscores the importance of the presence of a substitution-innovation mechanism, with geographical distance problems being compensated by proximity in other dimensions as a driver of innovation, whilst there is no support for a potential overlap-innovation mechanism.

Knowledge networks and industrial structure for regional innovation: An analysis of patents collaborations in Italy

“…Regarding the role of industrial structure, many authors state that variety between industries in a region may promote innovativeness due to unusual relatedness (Fleming, 2001), cross-fertilization between sectors (Saviotti & Frenken, 2008) and decreasing risks of lock-in effect connected to an excessively concentrated specialization (Fitjar, Huber, & Rodríguez-Pose, 2016).…”

Fostering Innovation Through Workplace Diversity

“…Such a knowledge base lies at the core of innovation. Fitjar et al (2016) discuss this in their paper entitled, "Not too close, not too far: Testing the Goldilocks principle of 'optimal' distance in innovation networks," concerning optimal partners for innovation. The Goldilocks principle refers to the fairytale of "Goldilocks", in which the eponymous heroine finds a house in the woods and walks in to find it empty.…”

“…She walks around the house and continues with this procedure, testing the chairs, the bed, and so on, until she discovers one that is just right. This is the idea behind identifying the ideal collaboration partner, which Fitjar et al (2016) identify as the one at "the right distance" -not too close and not too far. Partners must share some common knowledge and find common ground on which to start the discussion.…”

Proximity and multinational enterprise co-location in clusters: a multiple case study of Dutch science parks

“…For our respondents, cognitive proximity is not affected by geographic proximity and high social proximity does not depend on geographic proximity. These findings contribute additional insights to the emerging research on the interaction between the different proximities and the conditional boundaries of the positive role they have on co-location in locations seeking to stimulate knowledge generation and transfer (Mattes 2012;Paci, Marrocu, and Usai 2014;Hansen 2015;Fitjar, Huber, and Rodríguez-Pose 2016;Steinmo and Rasmussen 2016), beyond the already recognised negative effects of excessively high proximity (Petruzzelli and Carbonara 2007).…”

“…Organisational proximity reflects shared understandings of control and coordination of organisations (Boschma 2005;Balland, Boschma, and Frenken 2015) and, finally, cognitive proximity is the degree to which actors have a shared knowledge base that enables effective learning (Nooteboom 2000;Boschma 2005;Balland, Boschma, and Frenken 2015). Balland, Boschma, and Frenken (2015) review of the proximity literature shows that significant progress has been made in the disentanglement of the proximity dimensions (Boschma 2005;Mattes 2012), understanding the proximity paradox where increasing proximity results in less innovation (Broekel and Boschma 2012), evaluations of the optimal distance for innovation, or the 'Goldilocks principle' (Boschma 2005;Fitjar, Huber, and Rodríguez-Pose 2016), and the phenomenon of temporary proximity (Torre and Rallet 2005;Torre 2008). Studies of proximity have also developed significantly and rapidly from early, more static approaches (Boschma 2005;Knoben and Oerlemans 2006; see Appendix 1 for a summary of the related assumptions and MNE relevance) to a more recent emphasis on a dynamic theory of proximity and knowledge networks related to innovation (Balland, Boschma, and Frenken 2015).…”