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<p>Deindustrialization seems to depress innovation despite ever-increasing R&amp;D. One practical response has been to colocate more production back with R&amp;D. However, research investigating the effectiveness of colocation has so far focused on the <i>intraorganizational </i>level, which does not match the scale of deindustrialization. To bridge this gap, this study theorizes that the <i>interorganizational </i>colocation of production and R&amp;D by clusters of small firms in industrially diversified cities may have innovative benefits. Accordingly, innovation would benefit from being more widely distributed spatially. This hypothesis is tested on Seoul, Korea, which presents globally extreme parameters of early deindustrialization, large-firm dominance, and innovativeness. The study evaluates the spatial concentration and clustering of innovators and research universities across the 360 city districts of the Seoul Metropolitan area from 1990 to 2014. The results support the hypothesis by showing that innovators deconcentrated disproportionately as innovation soared. At the same time, innovators clustered less than expected among themselves and with universities.</p>

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The interorganizational colocation of innovation and production: Evidence from Seoul

  • 期刊论文

  • 发表日期：

    2025年11月10日

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  • Sylvain Pierre Remy

摘要

Deindustrialization seems to depress innovation despite ever-increasing R&D. One practical response has been to colocate more production back with R&D. However, research investigating the effectiveness of colocation has so far focused on the intraorganizational level, which does not match the scale of deindustrialization. To bridge this gap, this study theorizes that the interorganizational colocation of production and R&D by clusters of small firms in industrially diversified cities may have innovative benefits. Accordingly, innovation would benefit from being more widely distributed spatially. This hypothesis is tested on Seoul, Korea, which presents globally extreme parameters of early deindustrialization, large-firm dominance, and innovativeness. The study evaluates the spatial concentration and clustering of innovators and research universities across the 360 city districts of the Seoul Metropolitan area from 1990 to 2014. The results support the hypothesis by showing that innovators deconcentrated disproportionately as innovation soared. At the same time, innovators clustered less than expected among themselves and with universities.