From knowledge spillovers to knowledge interactions: Towards a systemic approach to innovation

The paper aims to providing an integrated theoretical framework for questioning the traditional understanding of the conditions under which geographical space favours knowledge creation and local dynamics of innovation and growth. The paper shows the analytical elements of the methodological shift in the economics of knowledge from an ex ante perspective that values static allocation problems, towards an ex post perspective that appreciates the actual conditions that support the production and diffusion of knowledge, one that values feedbacks, complementarities and interactions. The essential argument here is that systemic interactions and networking among innovators are necessary conditions for the success of knowledge creation, and that intentional action is required in order to benefit from knowledge flows. Within this perspective, knowledge is understood as a collective good where the coordination of the division of knowledge and of innovative activities has most relevant governance implications: interactions and networking plays a most important role here. Since, in fact, technological knowledge is fragmented into several portions of internal and external, tacit and codified competencies, which are commanded by different organisations, coordination between those organisations is most important to recombine the different and yet interdependent portions of knowledge, to integrate these and augment the internal competencies of firms. Knowledge interactions emerge as strategic processes in the production of new knowledge, and should be a central issue in a research agenda that value the systemic character of the innovation process.