The Role of Proximity in Technology Dynamics of High-Tech Industries: the Case of Biotechnology and Aviation Industries

Abstract

Abstract Confronted with new global competitive environment, rising R&D costs, growing integration of different technologies, shorter life cycles, and increased pace of innovation, high-tech companies increasingly collaborate with external partners. Innovation networks became unconditional driver of technological dynamics and growth of high-tech industries. The article aims to explore the role of proximity in innovation networks formation in the two high-tech industries – biotechnology and aviation. Both industries are characterized by different stages of technological maturity, different product life-cycles and development periods, yet both equally depend on highly specialized human capital and collaborative innovation. The article addresses the following research questions: What is the role of proximity – geographical, cognitive, institutional, organizational, social and cultural – in facilitating innovation networks formation in the above mentioned high-tech industries? What type of proximities and the related network externalities assist these industries along their life-cycles? What is the relationship between technology dynamics and innovation networks formation?