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ENG, Teck-Yong

Implications of the Internet for Knowledge Creation and Dissemination in Clusters - Oxford : Elsevier, February 2004

Recent advances in Internet-based telecommunication technologies have enabled firms to compete across their own regional and national borders regardless of physical presence, location and size. While studies on regional economics stress the importance of localized specialization for the creation and dissemination of knowledge, the Internet is introducing a nem competitive landscape for the conduct of business through virtual networks. However, there is little research on the influence of the Internet on regional development of clusters particularly concepts and theories for explaining the role of the Internet in thecreation and dissemination of knwledge - as a source of regional competence. This paper draws on cases of Cambridge's high-tech firms in the United Kingdom to examine and develop concepts pertaining to drivers: open gests the presence of four Internet drivers: open systems, virtual channels, multi-user engagement and extended customizability. The Internet facilitates communications, extends customization capabilities and presents new virtual channels that further strengthen the close and itensive interactions of spatial localization of firms for production and innovation

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