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

This chapter focuses on the consequence of poor understanding of the social phenomenon of innovation and the effect immature social infrastructure can have in limiting the benefits of proximity and prevent the entrepreneurial process of knowledge spill-over opportunities. Interviews of system actors in technology firms in the new cluster city of Cyberjaya (Malaysia) revealed they had low levels of interaction amongst the system communities and weaker relationship with local universities than local government agencies. The research contributes to the theoretical concept of proximity, where a lack of richness of a social infrastructure and low density of informal (unplanned) social networks influence the proximity benefits and limits the opportunity density of entrepreneurs knowledge spill-over. For policy implications, this research highlights developing deeper collaborative relationships with universities, reducing the dependency on local public authorities and investing in a richer social infrastructure; or utilizes existing mature towns/cities in preference to greenfield developments.