From Proximity to Multi-Location Territorial Knowledge Dynamics: The Case of the Swiss Watch Industry

In recent decades, territorial approaches have played an important role in the economy of innovation. They have given rise to a vast array of literature on conceptual models such as innovative milieus, technopoles, industrial districts, or more generally clusters. One the one hand, these models have been able to explain the role of technology and “diffuse focused” learning within geographical proximity as innovation drivers. On the other, they presented the evolution of local production systems as a specialization process in the global economy.New theories on the knowledge economy suggest that, in new innovation processes, knowledge is mobilized more systematically, more permanently, and at longer distance. Furthermore, works on cultural resources, cultural clusters or creative cities, for instance, have shown that numerous innovations today take place more frequently via socio-cultural dynamics than techno-scientific ones. Production-consumption systems have changed and the traditional regional networks have scattered within space.The case of the Swiss watch industry, principally in the Jura Arc, gives a good example of this evolution. In order to remain competitive, Swiss manufacturers have developed a new business strategy using culture as new resource for innovation. Watch brands sell authenticity and the high-tech watch has become the material base.Through the case of the Swiss watch industry, the article proposes a new conceptual framework giving importance to knowledge dynamics between production and consumption systems, between technological and non-technological factors as well as their territorial consequences.