This thesis argues for theory on industry clustering to embrace the potential for cooperation and innovation within a cluster. It also provides a proposition for the important factors driving that transition towards becoming a place of cooperative knowledge sharing and a hub of innovation.
Drawing on a variety of scientific literature and a literature review of established theory on strategy, knowledge, and innovation, the argument is made that an industry cluster excels as facilitator of knowledgesharing and innovation through cooperative activities. The main reason being the commonalities gathering an industry in such a concentrated space provides and how that along with frequent interactions helps relationship building and knowledge-sharing to happen more efficiently.
Observations from the world’s most innovative cluster, Silicon Valley, proves that cooperation can take place between companies and the support environment around the cluster, in the form of institutions, government, universities, among others, as well as between competing companies in a way that is mutually beneficial. The value and innovation created by these cooperative activities is made possible and enhanced by the clustered environment.
Bringing together the theoretical perspective and the learnings from Silicon Valley, it is proposed that what drives the transition from industry cluster to innovation hub is establishing trust, creating and retaining talent, motivating knowledge sharing, and opening innovation processes. Sustaining the innovation hub requires integrating a supportive institutional network, establishing commonalities, and having united cultural leaders.
|Educations||MSc in Finance and Strategic Management, (Graduate Programme) Final Thesis|
|Number of pages||79|