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More innovation is the remedy of the last resort that will save Europe's economic position and welfare. At least, that's what they say. As a result, European corporations are frantically looking for ways to improve the productivity of their knowledge workers, assuming this will increase their innovation ability. Are they looking in the right direction?

I can't tell you how many companies I have worked with that have encouraged or tolerated a large degree of geographic dispersal among employees and management teams. "We're virtual, and proud of it," one told me. "It doesn't matter where you live anymore," many employees of virtualized companies have argued. "We travel all the time anyway," has been another frequent mantra.