Clusters and knowledge: local buzz, global pipelines and the process of knowledge creation

TLDR

The study examines how spatial clustering of economic activity shapes the spatiality of knowledge creation in interactive learning processes. It challenges the assumption that tacit knowledge transfer is limited to local settings while codified knowledge can travel globally, and identifies conditions enabling both local and global exchange. The authors distinguish between buzz—learning among community members—and pipelines—communication channels built to external providers. They argue that firms in outward‑looking, vibrant clusters that combine high buzz with many pipelines gain unique advantages over outsiders, and suggest policy implications.

Abstract

The paper is concerned with spatial clustering of economic activity and its relation to the spatiality of knowledge creation in interactive learning processes. It questions the view that tacit knowledge transfer is confined to local milieus whereas codified knowledge may roam the globe almost frictionlessly. The paper highlights the conditions under which both tacit and codified knowledge can be exchanged locally and globally. A distinction is made between, on the one hand, the learning processes taking place among actors embedded in a community by just being there dubbed buzz and, on the other, the knowledge attained by investing in building channels of communication called pipelines to selected providers located outside the local milieu. It is argued that the co-existence of high levels of buzz and many pipelines may provide firms located in outward-looking and lively clusters with a string of particular advantages not available to outsiders. Finally, some policy implications, stemming from this argument, are identified.