External knowledge sources and proximity.

Purpose – Following the line traced by two previous works of Albino et al. and Messeni Petruzzelli, the paper aims to analyze how technology districts reach and acquire external competencies and capabilities by means of organizational and cognitive proximity. This allows districts to modify their geographical boundaries and evolve into technology clusters.Design/methodology/approach – The research design is based on a case study methodology. In particular, two actual technology districts are analyzed, namely Castel Romano and Toulouse, in order to show how they use organizational, and cognitive proximity to acquire external knowledge sources and re-shape their geographical boundaries.Findings – Based on the findings of the empirical study, two main propositions are formulated. The first proposition refers to the negative relationship between the geographical distance to the district's actors and the use of organizational proximity as a means for reaching external knowledge sources. By contrast, the second proposition indicates the positive relationship between the geographical distance to the district's actors and the use of cognitive proximity as a means for reaching external knowledge sources.Research limitations/implications – As regards the firm strategic behaviors, it seems particularly crucial to exploit all the three dimensions of proximity, in order to guarantee openness and sustain innovativeness and competitiveness. Concerning policy implications, the local governments should address their actions to help and promote the openness of technology districts and the formation of technology clusters. With this aim, actions should be devoted also to sustaining single local firms that are part of a technology cluster but not of a technology district. These, in fact, by increasing their competitive position, may generate positive externalities in the local area, fostering the diffusion and sharing of knowledge in the area and, then, acting as knowledge gatekeepers for the whole area.Originality/value – The paper extends the findings of previous works linking three proximity dimensions in a holistic framework that explains the different use of organizational and cognitive proximity to acquire knowledge, according to the geographical distance between organizations. [ABSTRACT FROM AUTHOR]