ABSTRACT
This chapter responds to new calls to explore knowledge network dynamics in clusters by providing new evidences on how endogenous forces and proximity influence the formation and relative value of firm linkages. To accomplish this task, firm-level data was collected during 2011 in a food stuff cluster in the Valencia region and an econometric approach based on exponential random graph models (ERGMs) was used. The chapter presents the previous literature and expectations and it introduces the main traits of the industrial cluster selected. It describes the methodological aspects, econometrics and results and highlights key findings and suggest implications. The key findings demonstrate some endogenous structural effects exert similar influences in the different models and confirm previous findings on network dynamics in clusters. The chapter aspires to throw light on how the different proximity dimensions shape the value of the inter-firm linkages. The proximity approach has been embraced in empirical research to better explain the networking behaviour of innovative firms.
