The interplay of regional dynamics, firm characteristics, and knowledge bases in establishing global innovation networks – A case study of the video game cluster in the Skåne region of Sweden

Abstract: This paper investigates the spatial distribution of different knowledge sourcing mechanisms by a network of video game developers in the Skåne region of Sweden. The video game industry has evolved considerably since its inception; transforming from a localized niche industry to one of the fastest growing media industries in the world. This paper aims to address how industry evolution engenders both a paradigm shift in the type of knowledge variety needed and the spatial proximity from where that knowledge is sourced. This paper also explores the mechanisms and dynamics which facilitate firms to engage in global innovation networks. It is understood that the engagement of global innovation networks is contingent on both the regional dynamics and knowledge base of the industry. However, little is understood on the driving mechanisms of these networks and why firms engage in them. The thesis is based on data collected through a survey and interviews of firms developing video games in the Skåne region to gain insight into their global and regional networks, through which different knowledge was sourced. Network data was analyzed via social network analysis and cross-referenced with relevant theoretical conceptualizations and interview transcriptions to ensure sound analysis and triangulation. The results suggest a new hybrid configuration of global-local networks: Global innovation networks were established via key strategic actors in the region who act as gatekeepers to international networking. The social network analysis reveals that network centrality is more important than regional centrality in the establishment of these global innovation networks. Actors in the core of the network had less need to establish these networks than actors in the peripheral area of the network. Furthermore, engagement in these networks was contingent on the regional knowledge pool and the firms' target market and business strategy. Industry globalization engendered a need for disparate knowledge varieties to be sourced over heterogeneous spatial proximities.