Abstract
This paper reports on a longitudinal qualitative study on the role of MNEs (multinational enterprises), as conduits of knowledge flows, in the evolution of a technology cluster. Previous studies illustrated how MNEs were attracted to existent clusters and their modes of entry into the cluster. This study however sets out not only how MNEs originated this cluster, but also how incumbent and later entrant MNEs propelled the cluster onwards in related and unrelated technology branches through both shaping knowledge density in the cluster and spreading knowledge breadth across the cluster. This facilitated simultaneous cluster specialisation, diversification and connectivity into the global system, thereby reducing vulnerability to technological disruption.
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