This paper aims at filling a void in the literature on the question as to whether organizational proximity can be fostered within clusters, focusing on a particular type of firm that has received increased interest in the last few years in the literature: KIBS. We address a dimension that has received little attention until recently, namely the local governance structures of technopoles. By identifying how cluster governance affects KIBS’ innovation performance, we contribute to the burgeoning literature on the different types of proximity on one hand, on KIBS on the other hand. The empirical research relies on a representative sample of 53 KIBS within the Savoie Technolac technopole in the French Rhône-Alpes region. Our results suggest that, besides the traditional determinants of innovation performance, governance (as an service provider) has a direct impact on KIBS’ innovation within the technopole. Governance also plays a crucial indirect role of third party to make KIBS more innovative when they are engaged in R&D partnerships. These results suggest that governance has a decisive role in the creation of communication and interaction structures between KIBS, which are essential for their innovation. This research may have important implications for governance modes, not only technopoles but, more generally speaking, in cluster forms.
