Production networks vs. innovation networks

Knowledge flows and industrial clusters: An analytical review of literature, Rakesh Basant, 2002

Looking for an overview of the literature on industrial clusters as they relate to knowledge transfer and innovation, I came across this very helpful review by Rakesh Basant. Besides providing a great overview, Rakesh pointed me in the direction of Dieter Ernst's work - an analysis of global production networks (loosely: the network of global supply chains). Looking at production networks also involved analyzing the knowledge flows that accompany transfer of machinery, technology licenses, and finance. Apparently, as global networks increase and ICTs become more readily available, more knowledge is being codified that would earlier remain tacit: a boost for innovation across distance. However, another study by Cassiolato seems to provide evidence that MNCs (dominant sources of knowledge in Ernst's model) may have little incentive to involve local actors in knowledge intensive activities, thereby limiting cooperation across distance to production, rather than innovation.

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