To what extent temporary collocation erodes the contribution of the permanent clustering to innovation in manufacturing industries?

This paper provides a nuance picture of the mechanisms through which temporary and permanent spatial co-location simultaneously sustain firm’s innovation. Using a large sample of footwear clustered firms, results suggest that, on the one hand, intra-cluster Vertical relationships contribute to innovation through firm’s internal resources. On the other hand, temporary collocation outside the cluster boundaries (in our case: Trade shows) enhances the mediating role of firm’s internal resources. Further than supporting recent research on temporary proximity and trade shows, our findings contribute to fill the research gap with regard to the effects of combining both forms of spatial proximity.