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Economics of innovation

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Question:

Discuss the role of communities of practice in the ‘local buzz’ and ‘global pipelines’ model

Author: Nasta Charniak



Answer:

Communities of practice are: • groups of workers bound together by shared experience, expertise and commitment to a joint enterprise • joint production and diffusion/transmission of tacit knowledge across intra/inter-organisational boundaries is possible as long as it is mediated within these communities • relational proximity can partially substitute for geographical proximity • Multinational Enterprises (MNEs) are privileged actors to create such relational proximity between their geographically dispersed units Conditions for more effective relational proximity in communities of practice • social affinities: optimal cognitive distance; individual traits; organisational attributes; institutional context In the context of local buzz, communities of practice are often formed within localized networks, such as regional innovation clusters or industry-specific groups. These communities bring together individuals with shared interests, expertise, and goals, creating a supportive environment for learning, problem-solving, and innovation. By fostering close interactions and relationships among members, communities of practice contribute to the generation of local buzz by amplifying the spread of knowledge, ideas, and innovations within a specific geographic region or industry sector. Within the global pipelines model, communities of practice can span across national or international boundaries, connecting individuals and organizations from different geographic regions who share common interests or work in similar fields. These global communities of practice leverage digital communication tools, online platforms, and international networks to facilitate collaboration and knowledge exchange on a global scale. By transcending geographic limitations, they play a crucial role in accelerating the flow of information, expertise, and innovation across global markets and supply chains. temporary proximity - organis. culture that allows managers to change how the things are done all around the world, still scientists are not pressed by it. Marshal’s localization, Marshallian externalities. Advantage of inputs, of labor market, spillovers.


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