Using the concepts of national and regional innovation systems as an analyt
ical framework for analysing the cross-border networking activities between
Baden and Alsace, the empirical analysis presented in this paper reveals t
hat despite the political promotion of cross-border relations the reality i
n innovation networking looks different. In the industry sample used for em
pirical analysis, no firm in Baden had research contacts with an Alsatian r
esearch institute, while at least 7% of the Alsatian firms cooperated with
research and transfer institutes in Baden. Although spatial distance does n
ot matter, cultural and institutional distance does. The neighbouring regio
n is not looked at as a significant knowledge source for firms in both regi
ons. Despite technological and economic internationalization, for many firm
s innovation-relevant learning still takes place mainly within their own na
tional and regional system of innovation. For the two regions under review
the Rhine is still a cultural and institutional barrier which needs more ne
tworking bridges to be crossed.