Informational networks and innovation in mature industrial clusters

Abstract

The position of a firm in inter-organizational networks that occur in geographic clusters can affect innovation. This study analyzes a wide range of ties and how they impact on the transmission of tacit and explicit knowledge. Thus, a firm's position influences its innovative performance in different ways, according to the type of network—tacit or explicit—and the type of innovation—process or product—under analysis. Few empirical studies have analyzed the relation between social networks and innovation in mature geographic clusters; an appropriate context bearing in mind the contingent nature of the relations under study. The results support the idea that a central position in both tacit and explicit knowledge networks is especially significant in the case of product innovation, but that the influence of structural holes is weaker. These findings contribute to the literature on clusters and social networks by explaining how strategic management of positions in knowledge networks can improve the innovative performance of a firm.