This paper examines knowledge flows within and across geographic boundaries of clusters and nations in the biotechnology industry. We hypothesize that these flows are characterized by various factors relating to the knowledge itself and by firm innovativeness and the presence of prior knowledge flows at the firm level. Surprisingly, our findings suggest that geographic proximity does not matter in some instances, while in others it has a decidedly nonlinear effect opposite to that hypothesized. The pattern of findings points to the greatest contrast in the comparison of between-cluster and between-country flows and presents an opportunity to reevaluate the role of geography and knowledge flows.

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Copyright © 2007 INFORMS. This article first appeared in Organization Science 18, no. 2 (April 01, 2007): 252-60.

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