Chapter

The Role of Geography in the Process of Innovation and the Sustainable Competitive Advantage of Firms *

Michael E. Porter and Örjan Sölvell

in The Dynamic Firm

Published in print September 1999 | ISBN: 9780198296041
Published online November 2003 | e-ISBN: 9780191596070 | DOI: http://dx.doi.org/10.1093/0198296045.003.0019
 The Role of Geography in the Process of Innovation and the Sustainable Competitive Advantage of Firms *

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This final chapter presents the authors’ view of how to link geography, innovation, and firm competitive advantage. Porter and Sölvell span many of the themes raised in the foregoing chapters, and highlight several of the more contentious issues as seen from their vantage point. The stress is on the geographical dimension and its importance for technological development in a broad sense, and, by implication, for sustainable firm competitive advantage. The dense, localized (regional) clusters reappear, as does the geographical embeddedness of firm activities and knowledge. Among other things, the authors look at the interesting things that go on outside the legal boundaries of the firm in this environment, and in particular, explore extra‐firm innovative activities and their determinants.

Keywords: companies; competition; competitive advantage; embeddedness; firms; geographic factors; innovation; location; regional clusters; technological development; technology

Chapter.  6753 words.  Illustrated.

Subjects: Microeconomics

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