The paper contributes to the understanding of the nature of local knowledge spillovers and their importance for innovation in clusters in developing countries. Using detailed primary data about a cluster of software firms in Montevideo, Uruguay, the paper finds plenty of evidence of the...

The importance of geographic proximity for innovation has been widely stressed in the cluster literature. Yet, new insights from the inter-organisational network and cluster literatures underline the role of non-local linkages in enabling firms in networks to enhance learning and to innovate....