Network diversity, distance and  economic impact in a cluster: visualising linkages and assessing network  capital

By: E. Byrne, E. Doyle, J. Hobbs. Competitiveness Review, DOI: 10.1108/CR-10-2020-0135">https://doi.org/10.1108/CR-10-2020-0135">10.1108/CR-10-2020-0135, August 2021.

Abstract: “Purpose – Effective policy to support business ecosystems should build on evidence-based analyses of firmlevel activities and outcomes. This paper aims to contribute to this requirement and makes three contributions. The first contribution is to extend the application of the network capital concept to a variety of eight distinct linkage categories (e.g. suppliers, customers and business support agencies) that support networking and clustering, in both activity and impact terms. The second contribution is outlining a novel method of network visualisation (V-LINC) based on the collection of primary and qualitative data. The third contribution is in applying the method to one cluster, information and communications technologies. Design/methodology/approach – Qualitative research on the nature and extent of organisational network linkages was undertaken. Structured interviews with a set of focal firms followed a tailored design approach. The concept of network capital was extended and applied to the cluster context by measuring network inputs and output (i.e. investments and impact). The approach was operationalised via a novel impact measurement approach, denoted as V-LINC, an acronym for visualising linkages in networks and clusters. Findings – The authors develop a business impact framework exploiting novel linkage visualisations and qualitative data from firms in a cluster in one city region across eight linkage types to capture distinct network capital elements. Organisational inputs into network development, measured as investment and involvement indicators and organisational outcomes from those networks, measured as importance and intensity indicators, are used to assess network performance. A comprehensive, systematic and robust analysis of network elements and performance is possible. Distance is found to interact differently across linkage types. Targeted recommendations may be made from the analysis of local or regional business ecosystems in light of measured business impacts of linkages. Research  limitations/implications – Due to the resource-intensive nature of data collection, the current study engages a limited sample of firms and interviewees. Applications of this approach in other contexts will permit further research into its usefulness in evaluating business impacts generated through networking activities. Originality/value – The method introduced here (V-LINC) offers a novel means to include both geography network theory into an understanding of knowledge relationships and networks within clusters. Accounting for both distance and linkage type reveals which categories of intra-regional and extra-regional linkages generate the greatest impact, given their frequency. The approach adds to available cluster visualisation and analysis approaches through identifying patterns of disaggregated knowledge flows and their impacts, with application to evaluation demands of policy.” [ABSTRACT FROM AUTHORS]

Putting the watering can away – Towards a targeted (problem-oriented)  cluster policy framework

By: N. Grashof. Research Policy, DOI: 10.1016/j.respol.2021.104335, August 2021.

Abstract: “In view of the undisputed promising effects of regional clusters and spurred by lighthouse examples such as Silicon Valley, cluster policies have been popular in many countries worldwide. However, in recent years the complaints have become louder about the actual economic relevance and efficiency of such regional innovation policies. In particular, the high degree of standardization in the so far applied cluster policies, focusing primarily on collaborative incentives to strengthen the relational density in clusters, have been criticized as being rather ineffective and costly to society. In order to solve this one-size-fits-all problem, it has been proposed that cluster policies should instead focus on the concrete conditions and needs within regional clusters. The aim of this paper is to respond to this call by considering firm-, cluster- and market-/industry-specific particularities. Based on an extensive systematic review of the empirical literature about the relationship between clusters and firms’ performances, an overview about relevant conditions is elaborated. By integrating such an overview with the general policy rationales it becomes possible to identify potential problems, e.g. in terms of missing absorptive capacities, which cluster policy can purposefully address. For each identified problem, a potential targeted (problem-oriented) policy intervention is therefore suggested. The corresponding result of this procedure is a policy-framework that offers an increased practical value in terms of bringing forth specific adaptive cluster policies rather than one-size-fits-all policies and thereby contributing to a more sophisticated understanding of the design of cluster policies.” [ABSTRACT FROM AUTHOR]

A Systems Perspective in Examining Industry Clusters: Case  Studies of Clusters in Russia and India

By: A. Klarin, R. Sharmelly, Y. Suseno. Journal of Risk and Financial Management, DOI: 10.3390/jrfm14080367, August 2021.

Abstract: “This article explores an examination of industry clusters from a systems perspective. We analyze Russia’s pharmaceutical clusters and India’s automobile clusters in terms of the systems concepts of holism, emergence, and open systems. We further consider the aspects of human capital investment and the availability of professional labor, infrastructure, private–public sector collaboration, support for funding and commercialization, as well as innovation corporate culture, when examining the institutional pillars supporting the development and growth of industry clusters within the national innovation ecosystems. The findings illustrate how industry clusters can be viewed from a systems perspective. We also highlight how the institutional pillars underpinning national innovation ecosystems can be applied to an industry cluster level, particularly in emerging countries. The article provides implications for theory and practice in the application of a systems perspective as a way to foster industry cluster innovation and promote a more effective national innovation ecosystem.” [ABSTRACT FROM AUTHORS]

Industry 4.0/Digitalization and networks of innovation in  North American regional context

By: P. M. A. Baker, E. Gaspard, J. A. Zhu. European Planning Studies, DOI: 10.1080/09654313.2021.1963053, August 2021.

Abstract: “The advancement of industrial, innovation-related economic policies such as Industry 4.0 and the advanced digitalization of production play an increasingly important role in fulfilling economic objectives in both Canada and the United States. There are a variety of ways in which such industrial-related policy approaches can be developed and implemented. Varying aspects of industrial and economic innovation often occur within a regional context, which can change policy is developed and implemented, dramatically and with little warning. This paper applies a case-based approach to examine enabling and constraining factors of regional innovation policy in two cases - Ontario, Canada and Massachusetts, US. Moving beyond a linear conception of regional innovation, this research explores how policies and modalities for collaboration can facilitate Industry 4.0 and related innovation ecosystems. Our analysis suggests that regional innovation impact is influenced through four principal factors: industrial clusters; context; collaborative synergies; and network intermediaries. Additional research could focus on an expanded case examination of the relationship between topdown policy approaches and the operation of regional innovation ecosystems coupled with bottom-up market- and stakeholderdriven analytic approaches.” [ABSTRACT FROM AUTHORS]

Covid-19 response of an additive manufacturing cluster in  Australia

By: T. Boehme, J. Aitken, N. Turner, R. Handfield. Supply Chain Management: An International Journal, DOI: 10.1108/SCM-07-2020-0350, July 2021.

Abstract: “Purpose – The sudden arrival of Covid-19 severely disrupted the supply chain of personal protective equipment (PPE) in Australia. This paper aims to examine the development of a geographical cluster, which, through the application of additive manufacturing (AM), responded to the PPE supply crisis. Design/methodology/approach – This longitudinal case study focuses on an AM cluster, which was developed to supply PPE in a responsive and flexible manner from 2019/2020. The study gathered data over three stages of cluster evolution: pre, during and post-peak Covid-19. Findings – The type and nature of exchanges between organizations involved in the cluster established important insights into success factors for cluster creation and development. Using an established complexity framework, this study identifies the characteristics of establishing a cluster. The importance of cluster alignment created initially by a common PPE supply goal led to an emerging commercial and relational imperative to address the longer-term configuration after the disruption. Practical implications – Clusters can be a viable option for a technology-driven sector when there is a “buzz” that drives and rapidly diffuses knowledge to support cluster formation. This research identifies the structural, socio-political and emergent dimensions, which need to be considered by stakeholders when aiming at improving competitiveness using clusters. Originality/value – Covid-19 has rapidly and unexpectedly disrupted the supply chain for many industries. Responding to challenges, businesses will investigate different pathways to improve the overall resilience including on-/near-shoring. The results provide insights into how clusters are formed, grow and develop and the differentiating factors that result in successful impacts of clusters on local economies.” [ABSTRACT FROM AUTHORS]

Situational analysis of the problem  of assessing the effectiveness of cluster development of the territory as an  aspect of the implementation of its sustainable development

By: O. Lyamzin. In E3S Web of  Conferences, DOI: 10.1051/e3sconf/202129603007, July 2021.

Abstract: “The development of territorial economic clusters is one of the important conditions for the growth of the competitiveness of economy, for the intensification of public-private partnership instruments and, ultimately, is a significant aspect of ensuring the sustainable development of territories [1,2,3,4]. It should be noted that the sustainability of such development is determined, first of all, by the establishment of close integration links both in terms of resources and products generated by the cluster participants. This leads to their joint interest in the overall end result of the cluster, cross-interest in the efficiency of the participants, insurance of the risks of each of them, and a number of other useful economic and social effects [5,6,7]. At the moment, the cluster approach to the intensification of development has taken a prominent place in the relevant concepts and strategies of a number of Russian regions and their municipalities. Today, it can be argued that a set of mechanisms has been formed at the state and regional levels, allowing, for example, to provide flexible financing for measures for the development of clusters [8,9]. Nevertheless, the situation is paradoxical when, in the presence of tools, the conceptual and methodological- instrumental part of the solution to the problem of assessing the effectiveness of cluster activities has not yet been sufficiently reflected and developed. This article examines this problem and identifies approaches to overcoming it.” [ABSTRACT FROM AUTHOR]

The influence of industrial clusters on SMEs earliness and  postentry speed: Exploring the role of innovation  activities

By: T. Mendes, V. Braga, C. Silva, V. Ratten, A. Braga. Thunderbird International Business Review, DOI: 10.1002/tie.22226, 2021.

Abstract: “Despite the existing contributions on the economic and social relevance of industrial clusters in the firms' internationalization, research on these topics is still scarce and, particularly, controversial at an empirical level. This study contributes to the extant literature on international development, proposing to explore the impact that industrial clusters and innovation activities exert in the most relevant temporal dimension of the firm's foreign expansion—internationalization speed (earliness and postentry speed). Further, this research seeks to ascertain whether the relationship between industrial clusters and internationalization speed is significantly different for low and high-technology businesses. Based on a sample of 3,537 Portuguese firms, collected in the SABI database, the results suggest that firms belonging to industrial clusters and developing innovation activities tend to exhibit a higher postentry speed, not observing the same impact in terms of early internationalization. The findings also reveal that low-technology firms have an additional incentive to become involved in industrial clusters, since these actions will be reflected to a greater extent in their postentry speed than those of high-technology firms.” [ABSTRACT FROM AUTHORS]

Mathematical tutorial for building a  regional cluster in the field of vegetable growing

By: A. V. Medvedev, L. N. Medvedeva, O. Roiss, Y. G. Onoprienko. In IOP Conference Series: Earth and Environmental  Science, DOI: 10.1088/1755-1315/786/1/012031, 2021.

Abstract: “The purpose of the research was the studying of development prospects of agro-industrial cluster in vegetable growing on the South of Russia, based on systematic approach. Statistical information in the area of public administration of agriculture, entrepreneurship development and vegetable growing, was used for analysis. The structure of sown areas was considered and the results of the gross harvest of agricultural products at the regional level were presented; a brief overview of the most significant enterprises, producing and processing vegetables was provided; the factors were shown and the tutorial of the formation of an agro-industrial cluster in vegetable growing was calculated. With the help of the methods of economical and mathematical modeling, the agro-industrial cluster tutorial for the South of Russia was developed. It was shown, that for the effective socio-economic development of the country, it is necessary to form clusters, use the mechanism of public-private partnership and support innovative agricultural entrepreneurship in the field of irrigated agriculture.” [ABSTRACT FROM AUTHORS]