Knowledge Networks and their Implications for the Growth of Industrial Innovation Clusters

A cluster is a geographic concentration of interconnected companies and associated institutions in a particular field. It is widely accepted that clusters generate better economic performance than simple aggregations of companies, as mutual influence between clustered firms makes knowledge sharing and diffusion much easier. In this process, the novelty and diversity of accumulated knowledge is an important source of sustainable innovation and growth for the cluster. The more diversified the combined knowledge, the greater the scope and possibility of new knowledge creation. This study focuses on the relationship between cluster growth, knowledge heterogeneity and knowledge networks. First, we measure the degree of knowledge heterogeneity for each regional cluster, and verify the relationship between cluster growth and heterogeneity through empirical analysis. By analyzing this relationship for each life-cycle of a cluster, we place particular emphasis on understanding the development factor of the cluster. Second, we investigate the role of knowledge networks in cluster evolution by identifying the structural characteristics of networks. The structural characteristics cover the scope, strength, and closeness of the relationships among the network members as well as a quantitative scale. This approach will provide meaningful information in seeking cluster growth policies in terms of the formation and development of knowledge relations.