Rivalry and Learning Among Clustered and Isolated Firms

INTRODUCTION Knowledge has become a crucial asset in modern production systems, and its creation has become a key process in order to sustain or increase competitiveness. The ensuing shift toward a knowledge-based economy has amplified research interests in geographical clustering of firms, for geographical proximity is supposed to ease inter-organizational learning. This paper aims to make a contribution by investigating the relationships between geographical proximity and rivalry with respect to inter-organizational learning and knowledge creation. In order to reproduce the interactions between firms, we made use of an agent-based model where the strategic choices of rival firms are derived from general assumptions on competitive behavior and learning processes. Aim of the model is to investigate the co- evolution of firms’ knowledge, strategies and performances.