Global Connectedness and Local Innovation in Industrial Clusters

23 Pages Posted: 27 Jul 2018

See all articles by Ekaterina Turkina

Ekaterina Turkina

HEC Montreal

Ari Van Assche

HEC Montreal; Center for Interuniversity Research and Analysis on Organization (CIRANO)

Date Written: April 2018

Abstract

In today’s knowledge economy, clusters are a key driver of a country’s competitiveness. Yet a cluster’s technological base is now more than ever influenced by constituent firms’ actions to tap into distant knowledge sources. Drawing on a social network perspective, and distinguishing between horizontal versus vertical organization-based linkages, we explore the effects of a cluster’s connectedness to foreign locations on its innovation performance. We show that improvements in horizontal and vertical connectedness both stimulate a cluster’s innovation performance, but that their relative effects vary across cluster types. Innovation in knowledge-intensive clusters disproportionately benefits from enhancements in their constituent firms’ horizontal connectedness to foreign knowledge hotspots. Innovation in labor-intensive clusters mostly gains from stronger vertical connections by their firms to central value chain players abroad. We discuss the implications of our findings for research on global knowledge sourcing and cluster upgrading.

Keywords: cluster, knowledge sourcing, connectedness, network analysis, patent

Suggested Citation

Turkina, Ekaterina and Van Assche, Ari, Global Connectedness and Local Innovation in Industrial Clusters (April 2018). Journal of International Business Studies, Vol. 49, Issue 6, 2018, Available at SSRN: https://ssrn.com/abstract=3219045 or http://dx.doi.org/10.1057/s41267-018-0153-9

Ari Van Assche

HEC Montreal ( email )

3000, Chemin de la Côte-Sainte-Catherine
Montreal, Quebec H2X 2L3
Canada

Center for Interuniversity Research and Analysis on Organization (CIRANO) ( email )

2020 rue University, 25th floor
Montreal H3C 3J7, Quebec
Canada

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