Abstract
This chapter is a systematic investigation of the effects that new communication technologies and different organizational forms of economic interaction have on knowledge creation and innovation processes. The emphasis is on the potential of combining computer-mediated communication (CMC) with forms of temporary and permanent face-to-face (F2F) interaction. It is pointed out that permanent co-location and F2F interaction may be efficient in some contexts but not in others and that temporary and virtual interaction, supported by CMC, are increasingly becoming the basis for establishing trans-local production networks. By combining results from social psychology with economic geography, the authors argue that there is no generally superior spatial fix for economic interaction. Different spatial configurations can be advantageous in different production and innovation contexts, even over large distances, without permanent or even regular F2F contact.
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