This research stresses the role of geography in the formation of network ties that channel ideas, knowledge and technology. It introduces novel aspects to consider while studying the drivers and outcomes of spatial network formation. The thesis establishes that spinoff background matters for tie formation in cluster knowledge networks. It shows that by searching for the drivers of network tie creation and tie persistence separately, we can better understand the evolution of industry clusters. It also provides evidence that co-location and complexity of technologies determine their relatedness ties. Furthermore, this research establishes a connection between forming structurally important linkages and being successful in urban agglomeration of creative industries. Besides extending the literature on spatial networks with new aspects, each of the chapters reinforce that geography is an important determinant of network tie formation.