The Social Fabrics of Innovation in Finance: An Analysis of Knowledge Eco-Systems in Financial Centres
To investigate these claims, this paper draws on primary empirical (online) survey and interview data from two financial centres specialising in the global investment fund industry, that is, Luxembourg and Singapore. Survey data reveal patterns of network interactions, i.e., professionals’ mobility patterns to combine previously disconnected ideas, expertise and tacit knowledge. They help to reconstruct patterns of connections between such individual network components, which constitute practices of mutual observation, imitation and learning in specialised financial knowledge eco-systems. Two observations are discussed in more detail: First, the role of embedded SMEs in their capacity to innovate and ‘do’ things differently by establishing new, more efficient, routines; second, the strengths of firm-state relationships, defining an area of negotiation of the regulatory frameworks that in turn shape and condition finance-related activities within a nation state’s sovereign territory. The presented empirical results, hence, provide insights into the ways and means of how existing knowledge within financial eco-systems is transformed and recombined, leading not least to capacity building of a financial centre’s resilience to external (shock) events.