For many years the Allen Curve held that physical proximity greatly influenced both our productivity and also propensity to collaborate with others. There is much to suggest that this general principle has held, even as more of us have worked remotely in recent years.

Recent research from the University of North Carolina at Chapel Hill highlights how proximity to senior managers helps scientists working in research and development teams be much more creative and productive. The researchers believe their findings highlight the valuable role senior managers often play in supporting creativity, and that their reputation as blockers of innovation is unwarranted.

“We started this work right before the COVID-19 pandemic, and we saw firsthand how disruptions to proximity can make coordinating, brainstorming, and creating harder,” the researchers say. “Proximity to senior management helps, rather than hinders, innovation and creativity.”

Proximity matters

The results show that physical proximity to senior managers helped innovators to outperform their peers who were located away from senior managers and the headquarters of their organization. This was especially so when direct flights to headquarters ceased running.

“Our results suggest that remote work may not be a substitute for direct, face-to-face contact with senior managers,” the researchers explain. “Firms appear to recognize that distant inventors are less productive and only employ them when distant locations offer other benefits, such as lower tax rates, that make up for the lower productivity.”

As a result, the researchers believe that a degree of caution should be used when implementing remote working as it may result in a decline in innovation if people lack access both to senior managers and to crucial facilities.