Its a fascinating paper and in it is an excerpt entitled "Why Innovation is Place Based" from another paper called Innovative Regions: The Importance of Place and Networks in the Innovative Economy. So today I have been investigating further. And have come with some fascinating resources that I am recording here for further study.
Here is a little taster from Innovative Regions :
Networks: In the traditional economy, ideas were held tightly within institutions; in the new economy, ideas flow more freely within networks. The unit of innovation has become the network, not simply the firm. To stay abreast of change and speed the commercialization process, the walls that once separated public and private institutions, education and business, and large and small firms must come down. Separation and hierarchy do not work when speed is of the essence. Increasingly, the process of innovation is not conducted simply within an individual company, but through knowledge-creating networks of individuals with ideas in companies, universities and other institutions. The key is the sharing of tacit knowledge through interactive processes based on trust, willingness to share and mutually beneficial exchange over time.These articles are the work of Doug Henton of Collaborative Economics and there are some even more interesting papers that can be downloaded from the publications page