Exploring the impact of clusters can have for cluster firm behaviour and innovation capability development

The importance of industry clusters for economic development and competitiveness is widely acknowledged (Lucena-Piquero and Vicente, 2019). Porter (1998) describes a cluster as a geographically proximate group of interconnected firms. Research has identified the wide-ranging value clusters can have for both SMEs and wider regional competitiveness (Rocha, 2014; Ketels and Protsiv, 2020). For example, clusters facilitate the sharing of knowledge via spillovers and diffusion of best practices (Porter, 2008). Clusters also create opportunities for new products, services and company productivity (Fornahl et al. 2020). Despite examples of successful clustering activity e.g. Silicon Valley and Paris-Saclay; the development and management of clusters requires alignment with particular country and regional endowments, sector strengths, demand conditions, culture, firm level strategy and policy supports (Porter, 2008; Fornahl et al. 2020). Much remains to be known on how clusters can be effectively developed and managed across different regional contexts with inherent strengths and constraints (Fromhold-Eisebeth and Eisebeth 2005; Lucena-Piquero and Vicente, 2019). Furthermore, research is needed on how clusters are different from and can complement other collaborative networks within regions and how they can fit within the wider entrepreneurial ecosystems to enhance firm growth and competitiveness (Fornahl et al. 2020).

Research on the effectiveness of clusters is inconclusive, where clusters are often evaluated in quantitative terms such as number of jobs (Aranguren et al. 2014). Less is known on how clusters can have a long-lasting impact on the behaviours, strategic direction, innovation capabilities and productivity of firms who take part in a cluster (Terstriep and Luthje, 2018). To aid theory development and to more holistically capture the impact of clusters, new lenses are needed, where this PhD will explore the use of behavioural additionality and dynamic managerial capabilities as lenses to understand the impact clusters may have for cluster firms.



2. The aim of this research is to explore the impact clustering can have for cluster firm behaviour.
The research will explore both the cluster firm and cluster management organization levels. This will give a tier of research, offering insights into how the industry clusters operate, and how the firms themselves operate at a micro level. The insights at the cluster management level will be significant from the perspective of exploring the concept of 'clustering'. In order to achieve this, the following aims and objectives will be explored:
1) To identify and evaluate the macro, meso and micro quantitative and qualitative measurement tools that are currently being used to understand the value of industry clusters. At a marco level the region of the industry cluster will be reviewed. At meso, the industry cluster itself, and finally micro will be at the individual firm level.
2) To explore how cluster management organisations facilitate the sharing of knowledge across clustering firms in order to promote innovative behaviour and development
3) To analyse the advantages that firms in a cluster can accumulate and how being a member of a cluster may influence the managerial capabilities of cluster firms.
4) To explore the relationship between clustering and behavioural additionality, and what impact it can have for clustering firms and clusters
5) To make recommendations which will be of benefit to cluster policy makers, industry clusters and their constituent firms