Proximity and multinational enterprise co-location in clusters: a multiple case study of Dutch science parks

Abstract

This paper explores the role of proximity in strategic asset-seeking multinational enterprises’ (MNE) co-location in subnational knowledge/innovation intensive clusters. MNE co-location in three Dutch science parks is examined in terms of the perceived importance of geographic, cognitive, social, organisational and institutional proximity dimensions. While all five proximity dimensions are found to play a role, organisational proximity emerged as the most important factor influencing MNE co-location in the Dutch science parks. This paper argues, in contrast to expectations for a high degree of relatedness and reinforcing effects between the five proximities, that an ‘optimal’ proximity constellation of low organisational proximity together with high social and cognitive proximity fosters MNE co-location in knowledge intensive clusters, such as science parks.