Vicarious Learning Blog

Tacit Learning in Innovation Clusters

A few days ago the Wall Street Journal online ran an article looking into the benefits of geographical clusters for related, competing and interconnected industries. Looking at over 15 clusters on 3 continents over 4 years researchers have found there to be significant benefits to the companies and research institutes involved. For one their is a symbiotic support network between innovation (e.g. from universities and graduates) and commercialisation (e.g. from risk orientated businesses). This support network bolsters the participants willingness and ability to move beyond established areas and markets. I'm inclined to draw an analogy here to the kinds of behaviours marked out in social foraging animals, in flocks and herds. Going beyond this risk taking and innovation behaviour, membership of a cluster also allows specialisation of the members, so that they can perfect their market niche. At the same time their is a compete-collaborate ethos that ensures that members hone their skills. The Sloan review from fall 2002 looked at How Location Clusters Affect Innovation. In particular how tacit knowledge sharing impacted on competitiveness and innovation. In particular the author argues that membership of a cluster affords better understanding and access to emerging and tacit knowledge such as industry and market trends, new media developments and audience responses. For businesses and research institutes at aren't members of an innovation cluster the following advice is given:

"They need to be particularly careful about developing innovation that is based on their own assessment of the market," says Gimeno. "Non-agglomerated firms may be able to provide more breakthrough innovations. But the dark side is that they are more likely to mistime entry into markets or be unaware of the attractive markets that are emerging."

Posted at 06:30PM Jun 24, 2008 by Finbar Dineen in General  |  Comments[0]