MASTER OF SCIENCE IN HUMAN GEOGRAPHY RADBOUD UNIVERSITY Borders in locally "buzzing" communication ecologies: Scope and limitedness of entrepreneurial networks in Twente (NL) and its German "hinterland” Supervisor: Prof Dr Arnoud Lagendijk Presented by: Pascal Bittner, 22nd June 2018. 2 Abstract This research provides an understanding of network –scope and –limitedness in the communication ecology of Local Buzz in border adjacent Entrepreneurial Ecosystems. It is found, that Local Buzz displays significant disruptions, along its tripartite research categories of knowledge-overspills, linkages and interdependences in the area under study. Extrapolating connectivity among regional anchor institutions with the methods of observations and interviews, it is shown how both scope and intensity are vastly limited to the domestic level. These limitations are interpreted as the manifold, structural accumulation of administrative, inter-institutional “borderednesses”. They are mainly visible in the way that the national state border poses a structural barrier for entrepreneurial vibrancy. Less visible, however, structural borders also exist on the domestic level, and cross- border networking is found to have an important side-effect of stimulating inter- institutional connectivity on this very domestic level. Directly - and as a unique advantage for regional policy making in border-adjacent regions – these domestic side-effects can be employed to increase domestic connectivity and thereby regional competitiveness. Indirectly, through the critical mass of better connected entrepreneurs and decreased domestic opportunity costs, it provides ground for a more fruitful communication ecology, stimulating network-scope and intensity across the accumulated effect of the state border. 3 TABLE OF CONTENT LIST OF FIGURES AND TABLES (own elaboration, if not stated otherwise) ............................................. 8 1. INTRODUCTION ............................................................................................................................. 11 2a. SOCIAL RELEVANCE .......................................................................................................................... 14 2b. ACADEMIC RELEVANCE ................................................................................................................... 16 3. THEORY .............................................................................................................................................. 18 3.1. Approximating Local Buzz as a relevant umbrella concept of Economics of Externalities ........ 18 3.1.1. Economics of Externalities among other governance mechanisms .................................... 19 3.1.2. Economics of Externalities and national borders ................................................................ 22 4a. GUIDING THEORETICAL PROBLEM .................................................................................................. 28 4b. GUIDING RESEARCH HYPOTHESES .............................................................................................. 30 5. CONCEPTUAL FRAMEWORK .............................................................................................................. 31 5.1. Research categories.................................................................................................................... 32 5.2. Research Object: Systemic factors of the Entrepreneurial Ecosystem ...................................... 36 5.2.1. Criteria-led objectification of the actors in the Entrepreneurial Ecosystem....................... 39 5.3. Bringing research categories, object and criteria together ........................................................ 46 5.3. Additional overview on the conceptual framework ................................................................... 48 6. RESEARCH FIELD ................................................................................................................................ 51 6.1. Regional demarcation ................................................................................................................ 51 6.1.1. Functional regional demarcation cf. Demand [in the labour market] and physical infrastructure in Stam (2015) ........................................................................................................ 52 6.1.2. Administrative regional demarcation (cf. formal institutions Stam (2015)) ....................... 55 6.2. Summary regional demarcation ................................................................................................. 59 7. RESEARCH METHODOLOGY ............................................................................................................... 61 7.1. Theoretical background of the research method ...................................................................... 61 7.2. Sources of empirical evidence .................................................................................................... 62 7.2.1. Interplay of the distinctive evidence to analyse the complex research object ................... 68 7.2.2. Bilateral and collective dimension of the research ............................................................. 69 7.2.3. Goal Matrix to map empirical data ......................................................................................... 70 8. RESEARCH VALIDITY .......................................................................................................................... 73 9a. OVERVIEW ....................................................................................................................................... 76 9.1. Mapping the empirical evidence within the goal matrix ........................................................... 77 9.2. Summarising discussion of mapping the field ............................................................................ 85 9b: SCOPE AND LIMITEDNESS OF THE THREE RESEARCH CATEGORY'S ENTREPRENEURIAL MANIFESTATIONS IN THE FIELD ............................................................................................................ 87 4 10. Theoretical category of EXTERNALITIES: Analysis of the scope and limitations of knowledge- overspills ................................................................................................................................................ 88 10.1. Orienting knowledge-overspills about the regional knowledge infrastructure ....................... 88 10.2. Facilitation of orienting knowledge overspills ......................................................................... 90 10.3. Processes of collective regional learning ................................................................................. 92 10.3.1. Learning through systematic feedback ............................................................................. 92 10.4. Conclusion: Scope of knowledge overspills .............................................................................. 95 11. Theoretical category of LINKAGES: Analysis of scope and limitations of regional networks .......... 96 11.1. Self-maintenance of linkages ................................................................................................... 97 11.1.1. Transaction costs of initiation and development .............................................................. 97 11.2. Common framework ................................................................................................................ 98 11.2.1. Scope of digital frameworks .............................................................................................. 98 11.2.2. Subjective scope of common frameworks ........................................................................ 99 11.3. Nuancing characteristics of the linkages in the area under study ......................................... 104 11.3.1. Bilateral, latent linkages .................................................................................................. 104 11.3.2. Trilateral linkages ............................................................................................................ 106 11.4. Physical proximity and the buzzing framework of self-maintaining face-to-face contacts ... 109 11.5. Conclusion: Nuancing the reach of self-maintaining linkages................................................ 112 11.6. Exemplary transnational network .......................................................................................... 113 11.6.1. Transnational linkages of actors in the network ............................................................. 116 11.7. Conclusion: Scope of an exemplary transnational network ................................................... 123 12. Theoretical category INTERDEPENDENCES: Analysis of scope and limitations of financial investment relations ........................................................................................................................... 125 12.1. Knowledge-overspills within financial interdependences ...................................................... 127 12.1.1. Financial interdependencies as a stepping stone ........................................................... 128 12.2. National scope of financial interdependences and linkages .................................................. 130 12.3. Conclusion: The cross-border scope of financial interdependences is very limited .............. 132 13. “BORDEREDNESS“ as a specific term for the limitedness in the research area ...........................