Localized learning revisited

The concept of localized learning outlines how local conditions and spatial proximity between actors enable the formation of distinctive cognitive repertoires and influence the generation and selection of skills, processes and products within a field of knowledge or activity. The localized learning argument consists of two distinct yet related elements. One has to do with localized capabilities that enhance learning while the other concerns the possible benefits that firms with similar or related activities may accrue by locating in spatial proximity of one another. In this essay, we disentangle these two inherent elements of the concept, review some of the critique that has been raised against it, and sort out some misunderstandings that we think are attached to its present use.