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Abstract
Cooperation with competitors (coopetition) is receiving increasing attention as an innovation strategy. This paper explores how different proximities facilitate innovation development in a coopetition alliance through a longitudinal qualitative case study of firms of different sizes and capabilities within a Norwegian coopetition alliance. We found that the development of cognitive and technological proximities is essential for the development of innovations from coopetition, especially for smaller firms that can exploit the initial levels of proximity facilitated by coopetition to increase their cognitive and technological proximity to the larger firms. We also find that building social proximity in coopetition leads to less tension in the interaction between competitors and thereby less tension in the development of the other proximities important for innovation development.
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