Paper Type
Short
Paper Number
1721
Description
Traditionally, geographical proximity is known to facilitate knowledge flows due to the physical presence of firms. Our study highlights a key finding: knowledge spillovers can begin at the announcement of a new entrant, even before its physical arrival. We apply the attention-based view of the firm to explain and predict how local firms' anticipation of the new entrant leads to changes in their innovation activities. Using Amazon's expansion to Crystal City, VA as a case study, we analyze how local firms’ anticipation of this entry affects local innovation. Our results demonstrate that Amazon's expansion positively impacts local innovation activities, highlighting the significance of anticipation in knowledge spillovers.
Recommended Citation
Nguyen, An and Nguyen, Felix, "Innovation Cascades: Amazon Headquarter 2 's Impact on Local Innovation Activities" (2024). PACIS 2024 Proceedings. 8.
https://aisel.aisnet.org/pacis2024/track05_dibusmod/track05_dibusmod/8
Innovation Cascades: Amazon Headquarter 2 's Impact on Local Innovation Activities
Traditionally, geographical proximity is known to facilitate knowledge flows due to the physical presence of firms. Our study highlights a key finding: knowledge spillovers can begin at the announcement of a new entrant, even before its physical arrival. We apply the attention-based view of the firm to explain and predict how local firms' anticipation of the new entrant leads to changes in their innovation activities. Using Amazon's expansion to Crystal City, VA as a case study, we analyze how local firms’ anticipation of this entry affects local innovation. Our results demonstrate that Amazon's expansion positively impacts local innovation activities, highlighting the significance of anticipation in knowledge spillovers.
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Innovation