Determinants of Innovation Frequency  in SMEs: Evidence from Ambattur Industrial Cluster

By: P. Kumar, P. S. Manjula. Small Enterprises Development, Management & Extension Journal, DOI: 10.1177/09708464211066634, February 2022.

Abstract: “Cluster-based industrial development has been pursued by policymakers in India. It emphasised an innovation-led path to development because of its potential of generating high-quality and technologically advanced jobs with decent wages. Continuous innovation is one of the main factors which can sustain competitive advantage in small and medium enterprises (SMEs). Hence in this article, we study how innovation frequency is influenced by various factors such as entrepreneurial characteristics, firm and its linkages with various stakeholders. The study was conducted among 160 randomly selected SMEs from the database of primary Association of Ambattur Industrial Cluster Members, AIEMA-Ambattur Industrial Estate Manufacturers Association. Primary data was collected through a structured questionnaire given to the decision-makers of each SME unit. Multinomial logistic regression was carried out on the data with innovation frequency as the dependent variable. The result of the study showed that factors such as entrepreneurial intention, entrepreneur type, firm’s life cycle, firm’s age, firm’s investment level and linkage with research institutions have a highly significant effect on innovation frequency and factors such as entrepreneur education, firm’s ownership structure, industry type, firm’s size and linkages with customers, government, universities, technical institutions also have a positive significant effect of increasing the innovation frequency.” [ABSTRACT FROM AUTHORS]

The role of intermediaries in  upgrading of manufacturing clusters: Enhancing cluster absorptive capacity

By: A. Karlsen, H. Lund, M. Steen. Competition & Change, DOI: 10.1177/10245294211059138, January 2022.

Abstract: “Specialized clusters rely on common knowledge resources and extra-cluster linkages, but how such resources develop over time is unclear. A case in point is how extra-cluster linkages are integrated into intra-cluster networks and the role of different cluster actors in enhancing cluster absorptive capacity. The paper explores the role of cluster intermediaries in linking clusters to external knowledge sources and contributing to knowledge dissemination among cluster firms. This perspective is relevant as manufacturing firms are facing rapid changes in technology, such as those associated with ‘Industry 4.0’. Two manufacturing clusters in Norway are studied regarding cluster absorptive capacities and the role of cluster intermediaries. The authors derive two types of cluster intermediaries with different kinds of service provision well-adjusted to the firm structure. Cluster intermediaries in both cluster contexts can assist firms in tracking and adapting to rapid technological developments.” [ABSTRACT FROM AUTHORS]

The Entrepreneurial State in Action:  The Danish Robotics Cluster and the Role of Public Sector

By: J. Lamberty, J. Nevers. Enterprise & Society, DOI: 10.1017/eso.2020.36, 2022.

Abstract: “The question of the role of the state in the creation of competitive clusters and innovation systems has drawn increased attention in recent years. Drawing on Mariana Mazzucato’s concept of “the entrepreneurial state,” this article investigates the role of the public sector in the development of the Danish robotics cluster, a world-leading cluster for production of industrial robots that has developed after the closing of Maersk’s shipyard in the city of Odense. In what ways did public programs and actors contribute to the development of this cluster? In what ways did public programs facilitate entrepreneurs, and when did they function as agents or perhaps even risk-takers? To answer these questions, this article tracks three layers of public agency: the local, the national, and the European. This article concludes that there were crucial initiatives at all three levels and that these initiatives were not coordinated, but nevertheless connected by a certain zeitgeist—the idea of public institutions taking responsibility for the competitiveness of private companies, an idea that blossomed in the period of high globalization from the late 1980s to the 2000s. In other words, what united the efforts of the public sector was not any master plan but an underlying thought collective that made the workings of “the entrepreneurial state” flexible and fit for the unpredictable nature of innovation. Thus, this article argues that industrial policy did not wither away in the age of neoliberalism but changed its form in an increasing complexity of state-market relations.” [ABSTRACT FROM AUTHORS]

Technology cluster coupling and invulnerability of  industrial innovation networks: the role of centralized structure and technological  turbulence

By: L. Li, H. Lin, Y. Lyu. Scientometrics, DOI: 10.1007/s11192-022-04269-x, January 2022.

Abstract: “The high failure rate of industrial innovation networks restrains organizations and industries from successfully developing innovation capacity and competitiveness. Given the trend of technology convergence, technology cluster coupling arguably makes a particularly important contribution to network invulnerability. This study examines how technology cluster coupling consolidates network invulnerability at the network level and examines the relevant dynamics under conditions of technological turbulence. Based on a longitudinal patent dataset from the renewable energy industry, we conduct patent network analysis and hierarchical regression analysis. The results show that centralized structure plays a partly negative mediating role in the positive relationship between technology cluster coupling and network invulnerability, and technological turbulence plays a negative moderating role in that relationship. This study responds to the appeal to explore the impact of community interaction on network-level outcomes and risk management in the innovation network, highlighting the critical role of centralized structure and shedding light on the moderating effect of technological turbulence. Our findings offer implications for industrial policymakers seeking to govern technology clusters aimed at strengthening the invulnerability of industrial innovation networks in environments with different degrees of technological turbulence.” [ABSTRACT FROM AUTHORS]

Fiscal Incentives and Tax Compliance Behaviour in Industrial  Clusters: A Survey of Clusters in South-east Nigeria

By: E. S. Nwokoye, C. I. Igbanugo, C. Ekesiobi, S. K. Dimnwobi. Journal of African Business, DOI: 10.1080/15228916.2022.2031827, February 2022.

Abstract: “The study investigates the impact of fiscal incentives on the tax compliance behavior of firms in industrial clusters in Nigeria. Data from 800 firms drawn from three industrial clusters in South-East Nigeria were collected using a structured questionnaire through a multi-stage sampling procedure. Descriptive statistics and the logistic regression model were applied to estimate the survey responses. The major findings of the study show that regular tax audit, firm size, simplifying the communication on tax requirement, communicating deterrent messages, educational attainment of the firm owner and political legitimacy of the current government as well as fiscal incentives (tax credit, tax reduction, capital allowance, investment incentives) significantly influence the tax compliance behavior of firms in Nigeria’s industrial clusters. Similarly, the study finds that fiscal incentives significantly enhance firm performance in Nigeria’s industrial clusters. Implications and policy suggestions are presented for adoption by concerned stakeholders in the tax and industrial sectors.” [ABSTRACT FROM AUTHORS]

Industrial clustering as a barrier and an enabler for deep  emission reduction: a case study of a Dutch chemical cluster

By: Z. Janipour, V. de Gooyert, M. Huijbregts, H. de Coninck. Climate Policy, DOI: 10.1080/14693062.2022.2025755, January 2022.

Abstract: “Industrial clusters are considered more resource- and greenhouse gas-efficient than stand-alone industrial plants, but clustering may also act as a barrier to radical changes required for deep greenhouse gas emission reductions. Here we explore how clustering in an energy-intensive chemical industry cluster may influence attainability of the deep emission reduction targets. Chemelot, located in the southeast of the Netherlands, was willing to collaborate and we adopt a qualitative system dynamics approach based on expert interviews and group model building sessions. We found that clustering may hinder reaching deep emission reductions by three reinforcing feedback mechanisms, or ‘traps’, related to: incremental changes; short-term focus; and companies acting alone. The system dynamics analysis also identified potential mechanisms to escape from these traps, notably: (1) increasing cluster autonomy; (2) activating public support; (3) promoting changes in the supply chain; and (4) attracting long-term investors. The findings can inform policymakers on how to steer industrial clusters towards deep emission reductions, and support industrial cluster decision-makers on both internal and external strategies” [ABSTRACT FROM AUTHORS]

Analyzing impacts of Vietnam’s North-South highway on  creation of regional cluster

By: E. Kim, M. Jiang, B. Kim. Asia-Pacific Journal of Regional Science, DOI: 10.1007/s41685-022-00230-1, February 2022.

Abstract: “This paper identifies the influence of Vietnam’s North–South (NS) highway on the creation of regional clusters through spatial simultaneous equation models and spatial cluster analysis. The models showed that the creation of a highway leads to a spatial redistribution of economic activities and the emergence of a new regional cluster in the South Central Coast Region. These results reveal that the improved level of accessibility stimulated by highway development has the potential to increase employment by 0.65% and GDP by 1.01%. Additionally, the construction of the NS highway generates positive economic effects on the less-developed regions in the country, such as the South Central Coast Area, whereas negative effects are seen in the more relatively developed regions of Hanoi and Ba Ria-Vung Tau.” [ABSTRACT FROM AUTHORS]

Investigating  barriers to demand-driven SME collaboration in low-volume high-variability  manufacturing

By: N. Kazantsev, G. Pishchulov, N. Mehandjiev, P. Sampaio, J. Zolkiewski. Supply Chain Management: An International Journal, DOI: 10.1108/SCM-10-2021-0486, February 2022.

Abstract: “Purpose – This paper adopts a multi-tier perspective and aims to explore challenges of small and medium-sized enterprises (SMEs) in collaborative manufacturing amid the emergence of dedicated B2B platforms. Original equipment manufacturers welcome formation of demand-driven collaborations between SME suppliers to facilitate ramp-up of production capacity. While being potentially beneficial to suppliers, such collaborations face various barriers. Design/methodology/approach – An exploratory study of 17 suppliers within the European Union’s aerospace industry was undertaken. The study comprised two stages. In the first stage, suppliers’ answers to self-administered interviews were analysed using thematic analysis. In the second stage, interactions between the barriers were determined through interviews with experienced SME collaboration facilitators. The authors apply system dynamics modelling to analyse the links between barriers and identify re-enforcing and balancing loops of other factors. Findings – The authors establish five major groups of barriers to collaboration impeding: market transparency, access to orders, partner trust, contracting and (e) data sharing and coordination. The authors model application of four enablers that facilitate barrier removal for technologyenabled supply chains: digital platforms, supplier development, smart contracts and Industry 4.0. Research limitations/implications – The study is limited by the data collection from the aerospace industry; validation of the models in other lowvolume high-variability manufacturing sectors is needed. Practical implications – The reader will learn about the barriers which impede demand-driven SME collaboration within manufacturing supply chains, interrelationships between these barriers and suggestions about how to remove them. SME cluster managers will find managerial implications particularly interesting as they will help them to overcome collaboration concerns and better prepare cluster members for Industry 4.0. Social implications – The models developed within this study can be used to explore the effects of intervening at critical points in the model to create virtuous improvement cycles between key barriers and related variables in the model. This can help decision-making and policymaking in the area of supply chain integration. Originality/value – There is currently a lack of studies about how the existing barriers amplify and de-amplify themselves and what the managerial approaches to tackle the barriers are. It is unclear how far companies will go in terms of information sharing, given the trust levels, power dynamics and governance structures evident in supply chains. This study contributes by explaining the reinforcing interaction between the barriers and showing ways to overcome these using enablers.” [ABSTRACT FROM AUTHORS]