Not Out of the Woods Yet

Academics and policymakers have turned their attention to innovation as a source of growth. Until recently, many studies adopted linear, R&D-based approaches to innovation, but these serve poorly when examining non-science driven industries such as furniture manufacturing, where innovation and creativity remain crucial. Current theorizing has brought a surge of interest in broader social (networks, systems) and spatial (agglomerations, regions) dimensions to innovation. This work examines how industry interactions shape innovation. Using original survey and interview analysis, the research finds that relational proximity to suppliers and customers increases the number of innovations introduced by firms. Suppliers play a key role as knowledge brokers and with the technology embedded in their materials, components and equipment. In isolated regions, electronic communications was a poor but necessary substitute to face-to-face interactions in facilitating knowledge transfers. This book provides insights for researchers studying innovation, and for regional development experts promoting regional and industry innovation strategies.