ABSTRACT
The globalization of the world economy, with for instance the diffusion of the activities of multinational corporations (MNCs) and the increasing “footlooseness” of production witnessed at the beginning of new millennium (see e.g. Castells, 2000; Storper 2000; Archibuigi and Lundvall, 2001; Epstein, 2003; and Freidman, 2005), have led to an increased interest in and need for a deeper understanding of the processes of knowledge formation. On the one hand, globalization appears to reinforce the importance of the territorial dynamics in generating industrial competences and skills development (Porter 1998, 2000; Storper 2000). Several concepts have been developed to capture this spatial dimension of industrial development, such as clusters (Porter, 1990), industrial districts (Marshall, 1890/1920) and regional innovation systems (Asheim and Gertler, 2005; Cooke, 2005). On the other hand, there are indications that knowledge formation and diffusion are not primarily locally coordinated processes (see e.g. Amin and Cohendet, 2005; Boschma, 2005). As the activities of many firms are, to a greater or lesser extent, globally distributed, the argument that the process of knowledge formation is primarily connected to geographical proximity is coming under scrutiny (Malmberg and Power, 2005). The current stage might imply that certain, previously localized resources, will become more generally available, reducing previous competitive advantages.
