An empirical study on the network properties of innovation in clusters: The social capital aspect

Abstract

Summary In a knowledge‐based society, knowledge is crucial to innovation. In terms of innovation input, firms look to their partners to seek knowledge to maximize their values by effectively combining the partner's resources and exploiting complementarities. Thus, it is impossible for a firm to possess all the knowledge for innovation. Delivery of information is harder with tacit knowledge than with explicit knowledge. In general, it is known that explicit knowledge can be a spillover through formal channels. On the contrary, tacit knowledge can be delivered with ease through informal channels. The purpose of this paper is to find whether the network activities based on social capital (trust and shared objective) differ in Korea clusters or not. Using data collected from multiple respondents in firms, it is found that there are no differences between formal and informal channels. As a means of knowledge transfer, formal channel is more effective than informal channel in Korea regardless of characteristics of firm, the size of firms, and pattern of innovation. To transfer knowledge based on tacit knowledge, social capital should be better cultivated among actors in clusters through policy implementation.