Local and international networks in small firm internationalization: cases from the Rhône-Alpes medical technology regional cluster

Abstract

This study explores the internationalization processes of small firms operating in the medical technology cluster in the Rhône-Alpes region in France. The study demonstrates that both the location and the sectoral type of industry cluster influence the internationalization and network dynamics in the cluster. In addition, both local and international networks influence firm internationalization processes in different ways. First, the firm life-cycle, industry and locational cluster dynamics determine the extent of network influence on firms' internationalization processes. Second, two types of internationalizing firms emerge in this study: born global firms, led by proactive entrepreneurs and globally market-orientated firms from inception, and born-again globals, which engage in late but rapid internationalization as a result of new management or foreign acquisition. Third, local networks in the cluster are important for influencing the internationalization of the born global firm at inception. In contrast, international networks serve as the main impetus for re-launching internationalization for the born-again globals. Fourth, the local research institutions and their connections abroad help both born globals and born-again global firms develop and internationalize their innovations rapidly in the global marketplace.