Articles
DOI DOI: 10.5281/zenodo.18442513

Innovation Networks and Cross-Border Knowledge Flows Under Geopolitical Fragmentation: Governance Fit, Modularity, and Interoperability

Oana Branzei1
  1. 1 Western University, Ivey Business School, London, Canada

Abstract

Background: Cross-border innovation is increasingly shaped by geopolitical
rivalry, export controls, sanctions compliance, data localization, and selective
decoupling. These forces do not simply reduce global connectivity; they reconfigure
how innovation networks form, govern exchange, and learn across borders.
Methods: This review integrates scholarship on interorganizational networks, global
value chains, innovation systems, and economic geography. A multilevel framework links
policy shocks to tie-level frictions, network restructuring, and firm learning outcomes.
Results: Fragmentation changes cross-border knowledge flows through three mechanisms:
(1) compliance friction that lowers tie bandwidth and slows joint problem-solving; (2)
constraints on talent mobility and data movement that weaken tacit knowledge transfer;
and (3) standards divergence that reduces interoperability and increases coordination
costs. Firms respond by rewiring partner portfolios, modularizing R&D, using clean-room
collaboration for regulated data and IP, and regionalizing innovation activity with redundancy.
Conclusions: Post-fragmentation performance depends less on network size and more
on governance fit. Firms that match knowledge type with appropriate governance
(modularity, controlled interfaces, selective deep ties, and auditable collaboration) are
better positioned to protect critical knowledge while sustaining exploratory learning

How to Cite

Branzei, O. (2026). Innovation Networks and Cross-Border Knowledge Flows Under Geopolitical Fragmentation: Governance Fit, Modularity, and Interoperability. Transnational Academic Journal of Economics, 2(2), 129–136. https://doi.org/10.5281/zenodo.18442513
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