Comparison of two cluster life stages in a synthetic knowledge base

ABSTRACT

Knowledge flows in clusters are highly important since they are related to innovation. Types and spatial levels of knowledge sources have been studied by many scholars. This study examines knowledge sources from evolutionary perspective. Evolutionary Economic Geography suggests that regional industries and their dynamics co-evolve. While conceptual and empirical studies argue that network characteristics take different characteristics throughout time, and that knowledge sources are subject to change, little is known about in what way they change in a synthetic knowledge base. In this study, we examined the knowledge sources in a specific knowledge base throughout time. The study was applied to two clusters in Turkey in a synthetic knowledge base yet in different life stages: emergence and maturity. The network structure was analysed by social network analysis, hypotheses were tested by Mann–Whitney U-Tests. The findings show that although network structure and density change through maturity, the types and spatial levels of knowledge sources do not vary between the two life stages, they keep the same characteristics of their knowledge bases.     

Same Sea,Different Ponds: Cross-Sectorial Knowledge Spillovers in the North Sea

Knowledge spillovers are crucial to innovation and upgrading, but it is largely unclear what knowledge spillovers are made of and how they actually happen. The importance of Marshall–Arrow–Romer vs. Jacobs externalities is also a debated matter, whereas the concept of “related variety” has recently come to occupy a middle-ground position. However, the relatedness concept is ambiguous in terms of operationalization and emphasizes codified knowledge on behalf of other knowledge resources that are important for innovation, particularly if firms cross into new sectors. This paper sheds light on the “black box” concepts of knowledge spillovers and relatedness by exploring cross-sectorial transfers from the mature offshore oil and gas sector into the emerging offshore wind industry. A qualitative research design allows for a more nuanced understanding of the contents of knowledge spillovers and (un)relatedness between sectors.     

The Creative Industries,Creative Occupations and Innovation in London

London is a global hub of the creative industries. These industries are seen as both innovative in themselves and an input in innovation processes in other sectors. Yet few studies have tested these relationships. This article investigates these issues using large-scale survey data for London. Using four measures of product and process innovation, we find no evidence that London's creative industries are more innovative than other sectors. Yet, individuals doing creative occupations in other sectors are a robust driver of product innovation in London's firms. The results suggest that occupations performed in London may be an important driver of product innovation in the city, and firms in other sectors may use creative occupations to develop new products in the capital. This finding is supportive of policies attempting to stimulate the creative industries by integrating creative occupations into firms across the whole economy.     

The Role of Knowledge Intermediaries in Developing Firm Learning Capabilities

Regional innovation systems (RISs) literature has emphasized the critical role of interactive learning and knowledge exchange amongst firms and a variety of spatially connected innovation institutions as the foundation of regional innovation. Knowledge intermediaries have been analysed in terms of the technology-transaction services they provide firms and/or knowledge producers such as universities and therefore the role they play in facilitating interaction within the RIS. However, innovation also depends on the capability of the firm to learn. Some studies have suggested that intermediaries also play a role in that regard as participation in intermediary knowledge transfer programmes can contribute to the development of firm capabilities for problem-solving and learning. Our research is based on two case study intermediary programmes involving interviews with facilitators and participants. Our data show that knowledge intermediaries affect organizational learning capabilities by impacting on firms' network relationships, internal and external communication channels and internal learning processes which in turn affect the ability to interpret and use knowledge within the firm. This suggests that the role of knowledge intermediaries might be greater than facilitating interactions in the innovation system, as knowledge intermediation may affect the ability of firms to learn and absorb knowledge from their environment.     

An assessment of the technology level and knowledge intensity of regions in Turkey

The paper investigates the patterns of technology and knowledge of the regions. The first aim of the paper is to determine cluster templates at the national level. The second aim of the paper is to investigate the technology and knowledge composition of the regional highpoint clusters. The paper identifies patterns of industrial linkages to define cluster templates and regional highpoints. The second part uncovers regional distributions of technology and knowledge. The data comes from Turkey’s 2012 input–output table. The location quotients use industrial employment statistics from the Turkish Statistical Institute. The technological and knowledge intensity classification follows Eurostat. The findings reveal 10 cluster templates in Turkey. Spatial distribution of the highpoint clusters reveals that most regions contain highpoint clusters with low technology and low knowledge-intensive sectors. The results reveal that highpoint clusters in Turkey’s regions contain industries whose technologies do not demand high skills, knowledge and sophistication. Limited existence of high-tech industries and low knowledge intensity in Turkey’s industry composition is a limiting factor for transition to high value-added manufacturing. Special emphasis should be directed towards constructing regional advantage, given the current levels of technology and knowledge intensity.     

In Search for a Common Ground: An Empirical Derived Model of the Formation of Common Ground among Voluntary Exchange Relation

Knowledge generation is one of the main forces in collaboration, because people connect to each other in such a process under the spell of the collective knowledge constructed through conversation. The process of collective knowledge construction itself becomes a conversational process. We argue that such a process transforms underorganized exchange relations into organized group action when a common ground is built upon a shared meaning. To illustrate this, we present two cases of collaborative processes: the strategic planning process of Ankara in Turkey and the inter-firm network formation of electronics and software industries in Vestfold County in Norway.     

Does Combinatorial Knowledge Lead to a Better Innovation Performance of Firms?

The knowledge base concept in the past was often applied in its “pure form”, i.e. it was assumed that there are dominant knowledge bases in particular sectors and firms shaping knowledge and innovation processes and related networks. For “analytical sectors” such as biotech, it has been argued that codified knowledge generated by universities and R&D organizations is the key for innovation, whereas “synthetic sectors” such as machinery innovate more incrementally by recombining existing knowledge often drawn from suppliers or service firms. Empirical literature has partly confirmed these patters, but also shown more complex knowledge processes. More recently it has been argued that combinations of different knowledge bases might enhance the innovation performance of firms. For example in “analytical sectors”, firms might benefit not just from new and basic knowledge generated by research, but also from recombining existing and applied knowledge or by drawing on symbolic knowledge. Combinatorial knowledge bases might also be relevant for “synthetic” and “symbolic sectors”, but in different forms. This study investigates for the ICT sector in regions of Austria if the reliance on combinatorial knowledge leads to a better innovation performance than the use of more narrow knowledge bases.     

An Insider's Look into Policy Transfer in Transnational Expert Networks

Much of the recent academic literature on spatial planning in Europe focuses on either cross-national comparison of planning frameworks and planning practices or on transnational and transregional initiatives and their impact on planning in European countries. From those publications, it can be gleaned how similar themes are translated differentially in different national contexts. Although it is also a great source of European integration and harmonization, the phenomenon of the knowledge exchange within transnational expert networks of European planners at the level of cities has received less attention. In this paper, the knowledge exchange among planners in such a network is studied, highlighting the role of “transfer agents” (academic and/or policy experts operating in communities in different policy arenas) in the exchange process. It builds on the insights from existing literature on policy transfer and policy learning, and tries to add a new perspective on this body of literature from an insiders' perspective, i.e. participatory observation. The idea is that policy transfer can be fruitfully approached as a process of knowledge and information transfer between producers, senders, facilitators and recipients. Often this exchange is to a very large extent a process of absorbing appealing labels for policy solutions from the international or national policy levels, and then adopting an interpretation of it suitable to one's own context. The authors try to give meaning to this exchange process by using two mechanisms, i.e. social interaction and conceptual replication. By combining these two mechanisms the authors try to uncover which policy lessons are being transferred among seven European cities that joined the expert network on European sustainable urban development (Pegasus).     

Social enterprises in regional innovation systems: a review of Finnish regional strategies

The aim of modern innovation policies is to enhance the innovation capability of regions, their organizations and people. Regional innovation system (RIS) theory has been one of the most popular frameworks for realizing innovation policies. Yet, adopting the perspective of sustainable innovation policy where innovation is also seen as a solution to various societal and environmental problems has been slow. Social enterprises (SEs) are discussed here as a means to address those problems, particularly through collaboration between sectors and focusing on social sustainability. The aim of this paper is to identify whether and in what way SEs are communicated as an innovative solution and as a source of innovations for economic and development activities through regional strategies. The data consist of regional innovation and business strategies from all Finnish regions, analysed using qualitative content analysis. We argue that there is a need to go deeper and include effective support mechanisms for SEs in these documents. Better inclusion of SEs as part of innovation systems and communicating this through regional strategies would help to develop SEs and to have them perceived as potential innovators and active entrepreneurial actors in innovation systems contributing to economically, environmentally and socially sustainable development.     

Regional networks of small and medium sized enterprises: evidence from the Metropolitan Area of Ottawa in Canada1

Innovation is currently seen as a process which results from various interactions among different actors. Recent theories of innovation emphasize clusters and geographical proximity as loci of knowledge, development and exchange, critical to higher levels of innovation and regional growth. As a consequence, there is a territorial dimension to innovation. This article investigates the innovation activities and networking of 53 small and medium sized enterprises (SMEs) in Ottawa, Canada. Taking its point of departure from the proliferating literature on the localized nature of innovation processes, the article sets out to answer three empirical questions: How intensively are SMEs engaging in innovation activities? To what extent do they interact during innovation process activities? What is the relevance of spatial proximity in networking, and what is the relative importance of localized cooperation as compared to non‐localized cooperation. The results revealed SMEs rely as much on external networks of customers and suppliers, as they do on ones based in their own region, and that these are considerably more important, than other potential sources of ideas, to the innovation process within the firm.     

Barriers and Limitations in the Development of Industrial Innovation in the Region

The growing interest in public policy contributing to the expansion of industrial innovation, has become increasingly significant, resulting from the interrelationship between innovation, competitiveness, and economic growth. This article presents the results of an empirical study in identifying the most important barriers to the development of innovation, as ascribed by industrial firms belonging to the high-tech sector alongside the more traditional industries. The data were collected through field survey of industrial firms, located in the Northern region of Israel. A considerable unexpected similarity was identified in the most important factors that constitute barriers to innovation, between the industrial sectors and the different regions investigated. The most significant limitations are those that relate to the high risk involved with the engagement in innovation. The risks are related, on the one hand, to the lack of financial resources, and on the other hand, to the high cost needed for this engagement, thereby affecting the time needed for return on investment. Additionally, the lack of highly skilled workers was also found to be a significant barrier.     

Intra- and inter-regional knowledge spillovers: Evidence from European regions

Is the knowledge creation process linear or characterized by feedback relations among actors involved in the regional innovation system? How can the innovation process of ‘lagging’ regions be strengthened? What is the role and extent of inter-regional knowledge spillovers? The paper aims at providing satisfactory answers in investigating a knowledge production function framework adapted to the specific questions and which is tested on an extended sample of European regions. On the basis of the results, concrete policy measures are derived aiming at upgrading the knowledge creation capacity of European regions.     

‘Innovation is a dirty word’: contesting innovation in the creative industries

Innovation is a term that is used and defined in many different ways. This holds for innovation in general, but particularly for innovation in the creative industries. In cultural policy and in academic literature, the creative industries are often addressed in the relation to their innovative capacities, yet a shared conceptualisation of innovation in this sector is lacking. This paper seeks to develop a conceptualisation of innovation in the creative industries based on 43 interviews with creative workers about their views and practices. Results indicate that creative workers articulate numerous views on innovation, with three main approaches: innovation as something completely new, innovation as a contribution to society and innovation as a continuous recombination of new and existing elements, with the latter being most prevalent in the creative industries and considered a central (by-product of the) process of creative production that is highly contextual to specific localities and fields.     

Knowledge and Proximity

Over the years knowledge has come to be seen as crucial for economic progress, and proximity as conducive to knowledge exchange. As a result, knowledge-related processes are often considered as possible explanation of the spatial agglomeration of economic activities. However, knowledge and proximity are general concepts that have to be detailed before it is possible to specify the concrete mechanisms at work. Building on recent work that focuses on proximity, this paper develops a perspective in which proximity features as an enabling element, but no more than that, in ongoing processes of knowledge creation, transfer, absorption, and change. We argue that knowledge is to be viewed as activity and process, rather than object or commodity. Concentrating on “knowledge agents”—those engaged in knowledge-related processes, individuals and collectives—will be more productive than persisting to rely on the distinction between tacit and codified knowledge to explain spatial aspects of the economy. Finally, we argue that regions are different when it comes to the extent, and the way, they facilitate creation, transfer, and other knowledge processes. Contributions to local or regional economic development, whether through research or policy, have to take existing repertoires—patterns in collective knowledge—into account.     

Local and trans-local dynamics of innovation practices in the Taipei design industry: an evolutionary perspective

Spatial-organizational proximities are crucial elements underpinning the innovation practices of creative industries. However, few studies have systematically explored how creative industries integrate the heterogeneous synergies of local and trans-local innovation practices as the diversity driving the evolution of a creative cluster within an Asian city. This paper contributes to unpacking the spatiality of local and trans-local innovation practices in the design industry from an evolutionary perspective. Based on 55 semi-structured interviews with Taipei product designers from 2011 to 2015, this paper presents a multi-dimensional framework for the spatiality of innovation practices, which exhibit two evolutionary dynamics in Taipei’s design industry cluster. First, the political-economic context enables the design industry to recombine heterogeneous knowledge by illustrating different proximities and diversities in various spatial-temporal environments. Second, the design industry increasingly depends on local and trans-local innovation practices, leading to a dynamic spatial strategy of design product differentiation. Studying the spatiality of innovation practices in the design industry reveals that the role of strategic agency, not spatial conditions, is crucial to understanding the transformation of the design economy.     

The Geography of Knowledge Transfer and Innovation in Biotechnology: The Cases of Scotland,Sweden and Denmark1

This paper addresses themes at the heart of policy debates on innovation systems and concentrates on the process of progressive transformation that has been affecting the therapeutic and diagnostic sectors as a result of the application of molecular biology. The focus is on the relationship between firms' locational choices, innovation policy and industrial dynamics. The issue of knowledge transfer is explored and the discussion addresses the theoretical controversy between two contrasting approaches: while some describe open networks and collaboration as means of enhancing competences for learning, others argue that, as intellectual assets are protected by property rights, knowledge adheres to specific locations mainly as a consequence of scientists' immobility. Then it is assessed whether knowledge transfer, in its different forms, is prevalently local or tends to occur on a global scale. Finally, the perceived effectiveness of some policy measures directed to enhance connectivity among players holding complementary knowledges is examined. Countries such as Sweden, Denmark and Scotland, who have pioneered the implementation of cluster thinking in Europe, provides an ideal setting to conduct this empirical study.     

Peripheralization and knowledge bases in Austria: towards a new regional typology

Scholars are increasingly interested in innovation in peripheral areas. However, research and policy documents are still often based on a traditional understanding of the core–periphery dichotomy. Here, the peripheralization discourse argues for a broader understanding and highlights the importance of economic, demographic, and political factors as well as knowledge intensity for defining core and peripheral areas. Concerning the latter, the differentiated knowledge base approach provides new insights, as it emphasizes the varying foundations for different kinds of innovations. By combining these hitherto unconnected strands of literature, this paper first develops a conceptual framework for a new regional typology, which considers both the degree of centralization/peripheralization and the prevailing knowledge base. Second, an exploratory analysis applies this framework to the 95 districts of Austria and provides first insights into peripheralization and issues of regional prosperity. The results show that there are indeed many nuances and that regions that are clearly either central or peripheral are the exception. Furthermore, peripheries come in many shades and are not uniform, as often assumed implicitly. Consequently, this paper argues that a tailor-made innovation policy for lagging regions would benefit from the incorporation of the peripheralization discourse. To conclude, it outlines directions for future research.     

Bridging the Knowledge-gap Between the Old and the New: Regional Marine Experience Production in Orust,Västra Götaland,Sweden

Abstract

Today many regions in the industrialized world have to deal with a transformation from traditional industry such as agriculture or manufacturing to service-oriented production such as tourism. Nevertheless, few studies highlight the possibilities and limitations of inter-sectoral knowledge sharing among stakeholders representing these sectors and hence there seem to be missed opportunities for mutual collaboration in the era of experience production. Using an evolutionary perspective, this article aims to analyse how the leisure boat manufacturing and the tourism sectors in the municipality of Orust on the Swedish west coast, combine knowledge from these two sectors as a way to spur innovation in experience production. The article shows how there are a number of limitations to sectoral knowledge interaction. Some of them can be linked to the conservative nature of the traditional industry, and to the immature nature of the tourism sector, others to the role of policy. However, at the same time as there being a number of obstacles for collaboration, the article reveals some interesting possibilities to form inter-sectoral knowledge sharing.     

Change in the Innovation Process: New Knowledge Production and Competitive Cities--The Case of Stuttgart

The global integration of economic activities is bringing with it major changes in innovation processes. New kinds of innovation, such as service and organizational innovations, became increasingly important in the 1990s. The shift to new forms of knowledge creation reflects the emerging knowledge based economy. This has effects on the existing comparative advantages of metropolitan innovation systems and is a major challenge to the ability of cities to adjust, especially those in mature industrial sectors whose competitiveness is based on innovations in industrial technology and scientific and technological knowledge production. Stuttgart is one of these cities. Much of the comparative innovative strength of the Stuttgart region derives from the generation of synergy effects of its technological and institutional development paths. The high levels of industrial exports and the competitiveness of the global players in the Stuttgart region indicates how advantageous the technology based knowledge production and diffusion in the region has been for the innovativeness of the core industrial branches. The crisis at the start of the 1990s showed that the economic success of particular firms does not mean that the metropolitan region as a whole is innovative and competitive. The institutional structures used to establish and maintain the comparative innovative advantages of the industrial sector have hindered adjustment to new forms of knowledge production and diffusion. The paper examines the adjustment processes in the Stuttgart region which are changing the organization of innovation and learning in a way that makes it receptive to new forms of knowledge production and diffusion.     

Challenges to Bridging Discrepant Knowledge Bases: A Case Study of the Norwegian Centre for Offshore Wind Energy

From a theoretical perspective, it is possible to enhance the innovation of firms and institutions by combining the analytic (scientific) knowledge base of research and development (R&D) institutions with the synthetic (practical) knowledge base of industries. Such combinations of knowledge are also believed to support regional development. One such initiative to bridge knowledge from the R&D sector and industry is the Norwegian Centre for Offshore Wind Energy (NORCOWE). However, as our case study shows, it is hard to bridge knowledge from these two partner groups. We found that this is mainly because of differences in the partners' timelines (long versus short), their attitudes toward knowledge (research based versus experience based), application of the knowledge (knowledge per se versus commercialization), and organizational dimensions (linear/closed process versus interactive/open process). These differences show that the knowledge bases of these two groups may not just be different; they can also be seen as discrepant. We also argue that the NORCOWE initiative is influenced by a “policy push” logic. This implies that the initiative was not properly embedded in the industrial or R&D institutions before being launched, but was instead driven by a political will to promote the development of a new renewable energy source.