Proximity, network formation and inventive performance: in search of the proximity paradox

Abstract

Based on patent data in the field of genomics between 1990 and 2010, we investigate how social network relationships, various proximity dimensions (geographical, organizational, technological) and their interplay affect the likelihood of forming technological collaborations and their inventive performance. We show that the network and proximity characteristics of co-inventors enable them to access different sources of knowledge, in different geographical and organizational contexts, and finally affect the quality of inventive collaboration. Based on econometric estimations, our results enable to address the proximity paradox argument that proximity acts differently on the formation of collaborations and innovative performance. Our results partly support this paradox. Although all types of proximity positively impact on the formation of new collaborations, only organizational and technological proximities directly impact performance. Moreover, the optimal level of technological proximity critically varies given the organizational and social network context.