Innovation in a globalising world: within or beyond local clusters?
by Martin Gjelsvik; Silje Haus-Reve
International Journal of Management and Enterprise Development (IJMED), Vol. 15, No. 2/3, 2016

Abstract: This paper addresses the question of how clustering effects firms' capabilities to innovate. Specifically, we examine whether firms located in local clusters are more innovative than firms not situated in local clusters. The paper uses a specifically tailored survey of the geographical distance and scope of collaboration for innovation of firms located in Norwegian city-regions. We find that a majority of firms are located in regional clusters. However, locating in regional clusters is not the optimal strategy for firms to innovate. Relating to a broader national cluster enhances the capability to market new products, and being part of an international business environment improves the capacity to launch radical or substantially new products. These findings question the strategic management literature, which holds a strong belief in the concept of regional clusters.

Online publication date: Mon, 08-Aug-2016

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