Knowledge diffusion and geographical proximity: A multi-relational networks approach

Abstract

In the literature on innovation and organizational learning, there is a wide consensus about the relevance of learning activities. Specifically, they occur both individually (as producers will increase their knowledge simply “by doing”) and collectively (as producers and other stakeholders involved will learn “by interacting”). Therefore, in these studies, the focus on informal learning has become increasingly evident with recognition that informal learning predominates in smaller and locally-operating firms, and large corporations alike. The aim of the study is twofold; firstly to understand the link between formal networks and informal learning and secondly to investigate if the information exchanged in the network between firms and institutions is altered by content. Through a case study in Foggia, southern Italy, we have investigated how knowledge flows among small organic food firms and related supporting institutions. The core finding of the study was that the existence of networks is necessary to promote informal knowledge flows, yet not sufficient by itself. In conclusion, several obstacles had to be removed before producers gained from the positive effects of geographical clustering and proximity.