While it is clear that the ability of firms to introduce new products or processes is crucially affected by their choice of innovation partners, the geographical dimension of these partnerships has until fairly recently attracted relatively little attention. Yet, the factors which drive firms to...

This paper assesses the extent to which the organization of the innovation effort in firms, as well as the geographical scale at which this effort is pursued, affects the capacity to benefit from product innovations. Three alternative modes of organization are studied: hierarchy, market and...