The Coevolution of Innovative Ties, Proximity, and Competencies: Toward a Dynamic Approach to Innovation Cooperation

Abstract

Different dimensions of proximity have been identified as crucial factors for the formation of innovative alliances providing for efficient knowledge flows therein. However, the determinants that keep these linkages alive are yet to be explored. The authors take a dynamic approach to investigating the coevolution of cooperation ties and various dimensions of proximity between potential collaboration partners. Specifically, they highlight the predominant role of cognitive proximity for the continuity of innovation-oriented alliances and take into account that this proximity changes over time. They find partner-switching more often than the repetition of collaboration. Neither knowledge transfer nor mutual experience with cooperation shows significant effects on repeated cooperation. Instead, cooperation is found to be favored by similarity (overlap) between the firms’ knowledge bases, an imbalance in the reciprocal potential for knowledge exchange, the general experience the partners have with collaboration, and similarity in the degree of popularity of collaboration partners.