Modelling dynamics of knowledge networks and local connectedness: a case study of urban high-tech companies in The Netherlands

Abstract

There are increasing doubts on the importance of localized knowledge and learning as benefits from a clustered location. Some empirical studies indicate that the influence of local proximity in knowledge networks stretches over larger distances than in previous times, while others suggest that local and global knowledge networks coexist. This study seeks to fill a gap in understanding how knowledge networks are shaped and how global networks may affect strength of local connectedness in a cluster. The study adopts an entrepreneurial view, drawing on a selected sample of urban innovators in the Netherlands, and employs rough set analysis and various other learning experiments. The results suggest that local/regional and global networks coexist in the urban places; this as a result of the interplay of spatial focus in the overall strategy, network capabilities and innovation intensity. With regard to local connectedness, our tentative results indicate a limited, but differentiated weakening of local linkages if knowledge networking is predominantly global. Overall, in balancing global with the local, young high-technology companies seek different ways dependent on progressing in their lifecycle and specific strategic choices.