Cognitive proximity, technological regime and knowledge accumulation: an agent-based model of interfirm knowledge exchange

ABSTRACT

Innovations in industrial clusters are highly dependent on a combination of internal and external knowledge among cluster firms with optimal levels of cognitive proximity. Meanwhile, all innovation activities in a cluster are affected by technological regime within that cluster, which is captured in terms of knowledge cumulativeness and knowledge distribution in this paper. Based on knowledge-based theory, this study develops an agent-based model of interfirm knowledge exchange, exploring the interplay of cognitive proximity and technological regime on a cluster’s knowledge accumulation. The results corroborate that cognitive proximity and cumulativeness condition jointly exert a significant inverted ‘U’-shaped effect on a cluster’s knowledge accumulation. The strength and shape of this effect are different for clusters with low versus high levels of cognitive proximity. Furthermore, the study extends the literature on technological regime by distinguishing the effects between knowledge cumulativeness and knowledge distribution, and the results reveal that large firm clusters (/SME clusters) perform best under a high (/low) level of knowledge cumulativeness. By simulating the sequential process of innovation dynamics, the study deepens understanding of mechanism behind how proximity affects innovation within clusters, thereby contributing to disentangling the interrelationships between cognitive proximity and technological regime.

KEYWORDS:

• Knowledge accumulation
• interfirm knowledge exchange
• cognitive proximity
• technological regime
• industrial clusters

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This work was supported by the National Natural Science Foundation of China [grant number 71273227, 71774139, 71732008, 72072158]; Major Program of the National Social Science Fund of China [grant number 20ZDA082].

Notes on contributors

Jiebing Wu

Jiebing Wu is a professor at the School of Public Affairs, the director of the Institute of Urban Governance, Zhejiang University, China. His research interests include inter-organizational network, innovation management, and non-profits development. He has published articles in European Management Journal, European Management Review, Journal of Intellectual Capital and other journals. E-mail: [email protected]

Yan Yuan

Yan Yuan is a doctoral candidate at the School of Public Affairs, Zhejiang University, China. Her research interests include inter-organizational network and regional innovation based on dynamic network analysis and social network analysis. E-mail: [email protected]

Bin Guo

Bin Guo is a professor of Innovation Management at the School of Management, Zhejiang University, China. His research interests are in the areas of innovation management and innovation strategy. He has published articles in Research Policy, Technovation, European Management Journal, Technology Analysis & Strategic Management and other journals. E-mail: [email protected]