Proximity, Collaborative Relationship and Entrepreneur's Knowledge Spill-Over Opportunity in a Malaysian Regional Innovation System

Abstract

This chapter evaluates the social phenomenon of innovation and the effect of immature social infrastructures have in limiting the benefits of proximity preventing the entrepreneurial process of knowledge spill-overs. Interviews with individuals in technology firms in the Malaysian city of Cyberjaya revealed low levels of interaction among the system communities and weaker relationships with universities than government agencies. The research contributes to the theoretical concept of proximity, where ineffective social infrastructure and low density of informal social networks influences the proximity benefits and limits the opportunity density of entrepreneurs’ knowledge spill-over. This study highlights developing collaborative relationships with universities, reducing dependency on local public authorities and investing in a richer social infrastructure; or utilisings existing mature towns/cities in preference to green-field developments.