Innovative linkages and proximity: Empirical results from recent surveys of small and medium sized firms in German regions

Recent theoretical discussion about modern approaches to explaining knowledge-based regional development in terms of industrial district, innovative milieu and network hypotheses emphasizes the importance of intraregional linkages between innovative actors. Among these, innovative firms and research institutions are regarded as most important for influencing regional economic development by intraregional linkages. This paper supplies databased research by analysing several comprehensive surveys in three German regions. It focuses on the role that spatial proximity of partners plays in the establishment of innovative linkages between manufacturing SMEs and other actors, such as research institutions, customers and suppliers. The results in general confirm the hypothesis of strong and increasing intraregional linkages between innovative actors. However, some of the empirical findings regarding industrial districts like Baden do surprise.