Abstract

An Overview of Innovation Discussions on creativity, creative thinking techniques, social psychology, geography, and economic development inform much of the commentary on innovation. Such work usually focuses on techniques for achieving innovation; enhancing its role in increasing productivity, and contributing to the economic betterment of a given group or region. For instance, in economics, “clusters” often are associated with innovation. These are the “geographic concentrations” of companies and services that collectively link to focus on meeting the overall needs of a given industry sector.1 Often, such companies both compete and cooperate, enhancing the cluster. The California wine cluster is an example which includes several vineyards, wineries, and those companies that contribute to all aspects of productivity in winemaking. This list covers those we might expect to be involved with wine production such as the manufacturers of bottles, corks, labels, and barrels; and also those who can provide a specialized advertising and media presence, offering linkages to related agribusinesses, the restaurant industry, and winery tourism.2 Due to geographic proximity and a linked focus, clusters are useful in enhancing the microeconomic capability of a given region. This occurs through improvements in the productivity of cluster members which enables them to compete effectively in both regional and global markets. The geographic concentration allows for access to capabilities, information, expertise, and ideas. They allow members to quickly perceive new buyer needs, and new technological, delivery, or operating possibilities. This allows members to quickly recognize and identify new opportunities far more readily than those residing outside the cluster. Pressure also exists within clusters. Competition and peer pressure can drive an inherent need for participants to distinguish themselves, and proactively force the pursuit of innovation. Also cluster participants tend to contribute to local research institutes and universities, and may work together to develop local resources collectively and privately in a manner beyond the mandate of local governments and other organizations. Activities such as these can enrich the work experience, and enhance innovation and the quality of life within the cluster community. In 1 Michael E. Porter, “Clusters and the New Economics of Competition,” Harvard Business Review (November-December 1998): 78. 2 Michael E. Porter, “Location, Competition, and Economic Development: Local Clusters in a Global Economy,” Economic Development Quarterly 14:1 (February 2000): 15–34, 17.

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