Opportunities and Challenges of Spatially Distributed Innovation Imaginariums

Alfred Marshall’s evocative explanation for localized specialization of industry—that “the secrets of industry are in the air”—has had a profound influence on the study of the geography of innovation. Physical proximity will always be a potentially powerful vector for the transmission of ideas and tacit knowledge. However, in contrast to Marshall’s late nineteenth century industrial districts, the number and capability of means of transmission not reliant on physical proximity have greatly expanded. This chapter will review recent empirical evidence that chronicles the declining importance of physical proximity for the transmission of innovative ideas and examine alternatives for spatially dispersed knowledge management. An important dimension to be examined is the extent to which physical proximity privileges the conventional linear model of innovation and predictions of increasing concentration of innovation in global cities. In contrast, alternative models that emphasize the importance of users in innovation communities or imaginariums support innovation occurring throughout the settlement hierarchy.