Territorial or trans-territorial networking: Spatial aspects of technology-oriented co-operation within the German mechanical engineering industry

This study examines the relevance and viability of innovation-oriented networks of small and medium sized enterprises (SMEs) in three differently structured industrial environments in Germany. It is mainly based on in-depth interviews in 155 SMEs of the mechanical engineering industry and with regional innovation consultants. Empirical results suggest that regional networks are hardly dominant features of the surveyed areas. Weak ties and innovation-oriented relationships are far less spatially restricted than generally assumed. In many cases, the access to interregional contact networks is much more important, especially for technology-intensive firms. Generally, technological change and competitiveness are pursued more through individual product-oriented firm strategies than through intensified regional networking. This has to be considered if network concepts are to be translated into regional economic policies.