In which cases should companies leverage regional collaborators for innovation?

Details

Supervisors

Gailly, Benoît ; Mosner, Felix

Faculty

Louvain School of Management

Degree label

Master [120] : ingénieur de gestion, à finalité spécialisée

Abstract

This thesis outlines the importance of spatial proximity for collaborative innovation. The consensus among scholars is that spatial proximity is conducive to collaboration. Proximity shortens travel distances between partners and thus saves costs, especially in the manufacturing sector. However, spatial proximity between agents is also of great importance in knowledge- and communication-driven collaborations. This is mainly due to the possibility of spontaneous and frequent personal exchange. Nevertheless, there are findings, especially among economic geographers, that spatial proximity itself is much less important than other types of proximity. This thesis details the importance of spatial proximity in relation to other proximity factors and shows how spatial proximity is related to knowledge sharing. Furthermore, it is shown in which situations spatial proximity is particularly decisive. For this purpose, it is also considered in which cases a partner located further away is advantageous. In addition, concepts such as temporary proximity are discussed. Temporary proximity has gained popularity due to the advance of digital communication tools. The theoretical and conceptual findings are then contrasted with an empirical study of the heavy industry within the framework of IN4climate.NRW, where efforts are currently being made to decarbonize the industry by boosting collaborative innovations. The applied methodology is a qualitative content analysis based on three semi-structured expert interviews. The thesis derives six implications for companies. The importance of spatial proximity can be represented by a U-shape, meaning that spatial proximity is necessary at the beginning and at the end of collaboration. Furthermore, proximity is imperative in knowledge-heavy projects. However, the advantages of distance collaboration should also not be underestimated. Ideally, a company collaborates with both close and distant partners. It is also important to distinguish between spatial proximity and direct meetings. Physical proximity as such is futile for collaborations if it is not accompanied by regular meetings and exchanges. Collaborations must also always be considered in the context in which they take place. Especially for smaller companies, collaboration with close partners can be crucial, as it can create economies of scale. Implications for regional governments are also delineated. If governments want to increase the readiness for collaborative innovation in their region, funds and the provision of appropriate infrastructure can be used as a steering tool. However, one must beware of having a too narrow scope. Otherwise, a risk of lock-ins emerges.