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Open and closed industry clusters: The social structure of innovation

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  • Manuel Portugal Ferreira

    ()
    (Instituto Politécnico de Leiria)

  • Fernando A. Ribeiro Serra

    ()
    (UNISUL Business School)

Abstract

In this paper we discuss knowledge and innovation in clusters and the benefits of clustering from a knowledge-based perspective. Knowledge-based resources and innovations are important sources of competitive advantage for firms. Aware of the importance of continuously seeking new knowledge firms increasingly seek knowledge-rich locations such as specific industry clusters across the world. These are locations characterized by the concentration of firms operating in related and supporting activities, a specialized work force and a specialized institutional environment that nurtures the industry. However, it is not likely that these clusters are always locations from which the firms will be able to draw the intended knowledge benefits. The social structure of the relationships between individuals and firms determines the extent to which knowledge will be created, will flow between co-located firms and bounds the knowledge benefits the firms may capture. We finish with a discussion of the need of further examination of the network dynamics involved in an industry cluster to obtain a clearer identification of the actual positive externalities that may accrue to co-locating firms.

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File URL: http://globadvantage.ipleiria.pt/files/2008/06/working_paper-24_globadvantage.pdf
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Bibliographic Info

Paper provided by globADVANTAGE, Polytechnic Institute of Leiria in its series Working Papers with number 24.

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Date of creation: 10 Jun 2008
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Handle: RePEc:pil:wpaper:24

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Keywords: Strategy; Industry clusters; Innovation;

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Cited by:
  1. de Barcellos, Marcia Dutra & Pozzo, Daniele & Ferreira, Gabriela Cardozo & Lionello, Rafael Laitano, 2011. "The Dynamics of the Innovation System for Functional Foods in South Brazil," 2011 International European Forum, February 14-18, 2011, Innsbruck-Igls, Austria 122032, International European Forum on Innovation and System Dynamics in Food Networks.

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