Innovation capability of clusters: understanding the innovation of geographic business networks.
| Autor | Bittencourt, Bruno Anicet |
1 Introduction
Innovation is increasingly regarded as a matter of survival and not merely a choice for firms (Bessant, 2003; Chesbrough, 2003; Freeman & Soete, 1997; Gnyawali & Srivastava, 2013). An alternative approach used to stand out in this dynamic environment derives from interorganizational exchanges, as firms have knowledge gaps that can only be filled through these interactions (Powell, 1990). In this context, clusters are strongly related to firms' innovative potential (Lai, Hsu, Lin, Chen, & Lin, 2014).
Several studies show that companies belonging to these geographic business networks tend to be more innovative and achieve superior economic performance in comparison with isolated ones (Audretsch & Feldman, 1996; Bell, 2005; Capello & Faggian, 2005; Giuliani, 2010; Marshall, 1920; Saxenian, 1994). It is understood that many facets are considered in order to better understand the innovative potential of clusters. However, the reasons why some business networks are more innovative than others are still under debate, thus instigating further exploration of their capabilities.
In a cluster, although the companies belong to the same sector and are grouped together, they have a heterogeneous and asymmetric distribution of knowledge (Giuliani, 2005). This disparity between clusters makes studying them even more complex and challenging, requiring research on the reasons why some clusters stand out from others. In this respect, the question arises regarding which capabilities make some clusters more innovative.
Capabilities depend on the set of tangible and intangible skills and resources (Zen & Fracasso, 2012) derived from the knowledge base (Giuliani, 2007). The knowledge and capacities required to develop and disseminate innovations are more easily acquired in clusters (Porter, 2000). The subject of innovation capability has attracted interest from several researchers (Guan & Ma, 2003; Lawson & Samson, 2001; Yam, Lo, Tang, & Lau, 2011; Zawislak, Zen, Fracasso, Reichert, & Pufal, 2013), although the literature is still incipient with relation to this topic. This gap is even greater in regard to the innovation capabilities of clusters. therefore, this research specifically seeks to answer the following question: how is the innovation capability of clusters developed? Thus, this study aims to understand the innovation capability of clusters. For this, an exploratory study was conducted of two clusters: the emerging cluster of Alto do Camaqua, in Brazil, and the growing cluster of Sisteron, in France.
As main contributions, this study provides an understanding of the elements that make up a cluster and develops a model of cluster innovation capability, which was possible based on a comparison between clusters from different contexts (countries) and at different stages of development. As a managerial contribution, we seek to help cluster managers to understand and maximize the innovation of geographic business networks and to assist public managers in the development of policies focused on regional development.
In addition to this introductory section, this article is divided into four parts. Initially, the theoretical literature review is presented, covering clusters, innovation capability, and the innovation capability of clusters. Subsequently, the methodological procedures used are presented. Next, the data, analysis, and results are discussed. The paper ends with the final remarks on the research.
2 Literature Review
2.1 Clusters
Clusters can be defined as geographic concentrations of interconnected companies and institutions in a particular field (Porter, 1990). The pioneering work on the subject derives from Marshall (1920), who introduced the concept of industrial district, an agglomeration of small businesses in the same locality.
The theme has grown in relevance, gaining more prominence after it was realized that the geographic agglomerates are generators positive externalities (Becattini, 1990; Porter, 1990). In addition, it is possible to perceive a strong relationship between innovation and clusters, since the companies operating in these clusters tend to be more innovative when compared to isolated ones (Audretsch & Feldman, 1996; Bell, 2005; Giuliani, 2010; Marshall, 1920). For researchers, knowledge and skills are more easily acquired and innovations are more efficiently developed and disseminated within clusters (Basant, 2003; Dahl & Pedersen, 2004; Porter, 2000).
Despite the various studies, there is still a lack of consensus on the reasons that make cluster environments more innovative. Lawson (1999) and Maskell and Malmberg (1999) argued that what determines the innovation within a cluster is its location. However, more recent studies argue that it is not the location, but rather the network formed by the cluster (Owen-Smith & Powell, 2004; Singh, 2005; Whittington, Owen-Smith, & Powell, 2009). Identifying how knowledge transfer flows in these networks is crucial to understanding how innovation happens (Giuliani, 2005). However, it should be noted that clusters do not influence their firms in a homogeneous manner (Zen, 2010).
Although recent research reinforces the idea that the local factor is not a determinant of the innovation capacity of a cluster (Tallman & Phene, 2004), it is impossible to deny its importance. The context surrounding the cluster and the company influences their capacities, even more so when very different realities are concerned. In the last decades, this has been proven by studies carried out in developed and developing countries (Silvestre & Silva, 2014).
Another factor worth mentioning in regard to the innovation capacity of a cluster concerns its stage of development. According to the stage of its life cycle, a cluster exhibits a set of characteristics that affect its innovation and its relationships with the companies (Menzel & Fornahl, 2010). Presutti, Boari, and Majocchi (2013) provide a model for different sectors, defining clusters as emerging (few interactions and innovations) or growing (different interactions and innovative recognition).
Finally, it has been noticed that clusters play an important socio-economic role due to the exchanges of knowledge and the high innovation potential of the firms operating in these geographic business networks. However, there is no consensus yet as to what differentiates these firms from isolated ones. It has been verified that there is heterogeneity in firms and in clusters, which may be related to their context and their stage of development. therefore, it is important to understand more about innovation capability, which is the theme of the next section.
2.2 Innovation capability
Although there is a consensus about the importance of innovation in terms of a company's competitiveness (Cassiolato & Lastres, 2000; Dodgson & Rothwell, 1994; OCDE, 2005), the reasons that lead some companies to innovate and others not to are still being discussed. In light of these questions, several studies converge towards the affirmation that firms have a set of capabilities that make them innovative. Thus, innovation capability would be the ability of those companies to generate and manage the implementation of technological and/or organizational innovations, including the ability to relate to others in the value chain (Bell, 2006).
Capabilities emerge from a combination of assets, people, cultural values, and operational processes in companies, which include the ability to know how to do things at low cost (efficiency) and what to do (effectiveness) (Zen, 2007). For Teece, Pisano, and Shuen (1997), the term "capability" emphasizes the fundamental role of strategic management in adapting, integrating, and reconfiguring organizational skills (external and internal), resources, and functional competencies to meet the demands of a dynamic environment.
In the competitive context in which firms operate it is important that they develop certain capabilities to stand out from competitors. Such capabilities, as well as their combination, can provide the possibility of promoting innovations, whether in products, processes, the market, or management. Several authors have conducted studies to understand the innovation capabilities of firms (Lawson & Samson, 2001, Guan & Ma, 2003, Yam et al., 2011, Zawislak et al., 2013). These researchers have highlighted different innovation capabilities of firms in their studies.
Lawson and Samson (2001) define innovation capability as the firm's ability to uninterruptedly transform new ideas and knowledge into new products, new processes, and systems that will benefit both the company and its stakeholders. On the other hand, Zawislak et al. (2013) understand that the sources of innovation come from four essential capabilities that together form innovation capability: technological capability, managerial capability, operational capability, and transactional capability.
Yam et al. (2011) understand that there are seven capabilities that determine the success of a company: research and development (R&D) capability, resource allocation capability, learning capability, manufacturing capability, organizational capability, marketing capability, and strategic planning capability. Similarly, Guan and Ma (2003) present seven main capacities to explain companies' competitive success: learning capability, R&D capability, production capability, marketing capability, organizational capability, resource exploitation capability, and strategic capability.
From the proposals presented by the authors it can be seen that there is still no consensus on the subject. It should also be noted that the studies presented focus on a firm's innovation capability, and there is no understanding of the innovation capability of clusters. Thus, the next section will address issues that touch on this topic.
2.3 Innovation capability of clusters
The positive relationship between companies operating in a cluster and their high...
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