Abstract
This article explores an examination of industry clusters from a systems perspective. We analyze Russia’s pharmaceutical clusters and India’s automobile clusters in terms of the systems concepts of holism, emergence, and open systems. We further consider the aspects of human capital investment and the availability of professional labor, infrastructure, private–public sector collaboration, support for funding and commercialization, as well as innovation corporate culture, when examining the institutional pillars supporting the development and growth of industry clusters within the national innovation ecosystems. The findings illustrate how industry clusters can be viewed from a systems perspective. We also highlight how the institutional pillars underpinning national innovation ecosystems can be applied to an industry cluster level, particularly in emerging countries. The article provides implications for theory and practice in the application of a systems perspective as a way to foster industry cluster innovation and promote a more effective national innovation ecosystem.
Highlights
Industry cluster innovation plays an important role in the economic development of nations (Porter 2000; Zhao et al 2010)
Such clusters do not operate in isolation. They are part of the bigger system of interactions between organizations, government, research institutions, educational institutions, and other stakeholders. This brings us to formulate two research questions that have not been extensively explored in the existing literature: (1) How can industry clusters be viewed from a systems perspective? (2) How does a model of national innovation ecosystem (NIE) apply to industry cluster innovation?
This paper explores industry cluster innovation from a systems perspective, by examining Russia’s pharmaceutical clusters and India’s automotive clusters according to the systems concepts of holism, emergence, and open systems
Summary
Industry cluster innovation plays an important role in the economic development of nations (Porter 2000; Zhao et al 2010). Industry clusters are a part of a national innovation ecosystem (NIE) (OECD 1999; Edquist 2005) where actors, networks and supporting institutional pillars enable value creation and innovation. Such clusters do not operate in isolation. We focus on examining industry clusters from a systems perspective, investigating holism, emergence, and openness (Suseno and Standing 2018) and focusing on the three broad aspects of actors, networks, and the institutional pillars of NIE. We focus on industry clusters in two transition and emerging economies, namely Russia’s pharmaceutical industry clusters and India’s automotive industry clusters The cases of both Russia and India are relevant as these countries play an increasingly important role in today’s economy. With limited research examining industry clusters in Russia and India, this topic deserves further investigation
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