Knowledge network dissemination in a family-firm sector

The literature on network often assumes that all firms in the net can benefit from knowledge externalities often reserved to the network area. Based on network analysis (historical and social) we will attempt to confirm the idea that social proximity plays a crucial role, especially in Italian clusters of small firms. We demonstrate that local knowledge relations are confined in the investigated area due to the high socio-familial substrate, the firm's capacity to recognise opportunities and co-ordination ability. The empirical analysis is based on the influence of both the characteristics of each entrepreneur and of each unit of innovation, and of the absorptive capacity (cognitive proximity) and social capital on relationships.