The Shifting Geography of Competitive Advantage:Clusters, Networks and Firms

We consider the dynamics of knowledge-based sources of advantage as they move betweengeographical locations and multinational and other firm level networks using the specialistcontext of Formula 1 motor over a fifty nine year period. We suggest that shifts incompetitive advantage are underpinned by the movement of both architectural and componentknowledge at both the firm and cluster level, and in particular we suggest that isolated firmscan both benefit from and add to cluster level knowledge. We conclude by suggesting ways inwhich MNEs can adapt their approach to both location and knowledge development in orderto enhance their ability to create competitive advantage.