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External Knowledge and Innovation Performance in Clusters: Empirical Evidence from the Uruguay Software Cluster

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  • Effie Kesidou
  • Chris Snijders

Abstract

The importance of geographic proximity for innovation has been widely stressed in the cluster literature. Yet, new insights from the inter-organisational network and cluster literatures underline the role of non-local linkages in enabling firms in networks to enhance learning and to innovate. This paper contributes to this literature by examining the importance of local and non-local knowledge networks for the innovation performance of firms in clusters. Our analysis is based on primary data from a survey of 95 software firms clustered in Montevideo, Uruguay. The results highlight that the most innovative firms in clusters heavily rely on non-local knowledge networks. Moreover, the number of indirect local ties to other firms is a better predictor of innovative performance than the number of direct local ties. Finally, our findings confirm the presence of knowledge gatekeepers in clusters and emphasise their role in enhancing innovation in clusters by absorbing knowledge from extra-cluster sources and diffusing it to other local firms.

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  • Effie Kesidou & Chris Snijders, 2012. "External Knowledge and Innovation Performance in Clusters: Empirical Evidence from the Uruguay Software Cluster," Industry and Innovation, Taylor & Francis Journals, vol. 19(5), pages 437-457, July.
    • Handle: RePEc:taf:indinn:v:19:y:2012:i:5:p:437-457
    DOI: 10.1080/13662716.2012.711028
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    1. Arora, Ashish & Gambardella, Alfonso (ed.), 2005. "From Underdogs to Tigers: The Rise and Growth of the Software Industry in Brazil, China, India, Ireland, and Israel," OUP Catalogue, Oxford University Press, number 9780199275601.
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    2. Roper, Stephen & Love, James H. & Bonner, Karen, 2017. "Firms’ knowledge search and local knowledge externalities in innovation performance," Research Policy, Elsevier, vol. 46(1), pages 43-56.
    3. Rune Dahl Fitjar & Franz Huber & Andrés Rodríguez-Pose, 2016. "Not too close, not too far: testing the Goldilocks principle of ‘optimal’ distance in innovation networks," Industry and Innovation, Taylor & Francis Journals, vol. 23(6), pages 465-487, August.
    4. Asbjørn Karlsen & Henrik Brynthe Lund & Markus Steen, 2019. "Cluster absorptive capacity: Two types of intermediaries in technology upgrading of manufacturing clusters," PEGIS geo-disc-2019_17, Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business.
    5. Xu Luo & Mengke Yu & Yongsheng Jin, 2023. "The Impact of Economic Policy Uncertainty on Enterprise Green Innovation: A Study on the Moderating Effect of Carbon Information Disclosure," Sustainability, MDPI, vol. 15(6), pages 1-17, March.
    6. Zafer Sonmez, 2018. "Interregional inventor collaboration and the commercial value of patented inventions: evidence from the US biotechnology industry," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(2), pages 399-438, September.
    7. Daniel A. Skog, 2016. "Local game, global rules: exploring technological heterogeneity exploitation in digital creative cluster evolution," Industry and Innovation, Taylor & Francis Journals, vol. 23(6), pages 531-550, August.
    8. Ana Paula Lisboa Sohn & Filipa Dionísio Vieira & Nelson Casarotto Filho & Idaulo José Cunha & Paula Regina Zarelli, 2016. "Knowledge Transmission in Industrial Clusters: Evidence from EuroClusTex," European Planning Studies, Taylor & Francis Journals, vol. 24(3), pages 511-529, March.
    9. Stephen Roper & James H. Love, 2018. "Knowledge context, learning and innovation: an integrating framework," Industry and Innovation, Taylor & Francis Journals, vol. 25(4), pages 339-364, April.
    10. Bakarić Ivana Rašić, 2017. "The impact of cluster networking on business performance of Croatian wood cluster members," Croatian Review of Economic, Business and Social Statistics, Sciendo, vol. 3(2), pages 39-61, December.
    11. Vas, Zsófia & Gyurkovics, János, 2021. "Összefüggések a hálózatok jellemzői és a vállalkozások innovációs teljesítménye között. Szakirodalmi áttekintés [What kind of relationship can be identified between network characteristics and the ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1171-1190.
    12. Marco Túlio Dinali Viglioni & Mozar José Brito & Cristina Lelis Leal Calegario, 2020. "Innovation and R&D in Latin America and the Caribbean countries: a systematic literature review," Scientometrics, Springer;Akadémiai Kiadó, vol. 125(3), pages 2131-2167, December.
    13. Hervas Oliver,Jose Luis & Gonzalez,Gregorio & Caja,Pedro, 2014. "Clusters and industrial districts: where is the literature going? Identifying emerging sub-fields of research," INGENIO (CSIC-UPV) Working Paper Series 201409, INGENIO (CSIC-UPV).

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