THE CONSTRUCTION OF INNOVATION NETWORKS AND THE DEVELOPMENT OF TECHNOLOGICAL CAPABILITIES OF INDUSTRIAL CLUSTERS IN CHINA

Abstract

Innovation network has been viewed as one of the most important means in improving technological capabilities for decades. Based on literature review, this paper presents a conceptual model on the relationships between the construction of innovation networks and the development of technological capabilities of industrial clusters in China. Applying this model we conduct a case study on reviewing history path of Zhejiang Haining leather industrial cluster. Conclusions can be drawn as follows: firstly, industrial clusters in China take on specific paradigm for technology acquisition by constructing external innovation networks; secondly, assimilation of acquired external technology resources and their translation into technological capabilities of clustered firms need support from internal innovation networks of industrial clusters; thirdly, quasi-external network, as a nexus between external and internal innovation networks of industrial clusters supported by collective learning, helps promote the effective development of technological capabilities of industrial clusters in China.