A large number of empirical and theoretical contributions provide strong evidence that firm-level performance outcomes in terms of innovativeness can be either determined by the firm’s position in the social space (“network effects”) or by the firm’s position in the geographical space (“agglomeration effects”). Even though we can observe quite recently first attempts in bringing together these traditionally distinct research streams (e.g. Whittington et al. 2009), research on interdependent network and agglomeration effects is still scant. Consequently, in this paper we seek to answer the following research question: considering that the effects of social and geographic proximity on firms’ innovativeness can be interdependent, what are the distinct and combined effects of firm’s network and geographic position on innovative output in the laser industry? In order to answer this question we analyze the innovative performance of German laser source manufacturers between 1995 and 2007. We use official data from the German Federal Ministry of Research and Technology on publicly funded R&D collaboration projects in order to construct yearly interorganizational networks and analyze structural network patterns and firm’s network positions. Based on information on population entries and exits we  calculate various types of geographical proximity measures between private sector and public sector organizations. We use patent data as measure for firm-level innovation output and specify poisson and negative binomial models for the econometric estimations. Empirical results provide evidence for the effect of network degree centrality. Firm’s geographical proximity to laser-related public research organization promotes patenting activity. Results on interdependent effects draw a quite ambiguous picture.