ABSTRACT
New combinations of knowledge are essential in every step of an innovation process. In the global knowledge economy, no single actor or organization has all the necessary knowledge under its own roof, but is rather dependent on interaction with others. This interaction is often ‘passive’, i.e. the firm benefits from spatial externalities such as accessibility to human capital and specialized labour, creditors, formal and informal institutions (the latter a form of social capital, see Westlund 2006) and particular groups of customers. Interaction can also be active and formalized. The firm establishes formal collaboration with R&D partners in various stages of the innovation process.
