New venture internationalisation and the cluster life cycle: insights from Ireland’s indigenous software industry

The internationalization of new and small firms has been a long-standing concern of researchers in international business (Coviello and McAuley, 1999; Ruzzier et al., 2006). This topic has been re-invigorated over the last decade by the burgeoning literature on so-called ‘born globals’ (BG) or ‘international new ventures’ (INV) – businesses that confound the expectations of traditional theory by being active internationally at, or soon after, inception (Aspelund et al., 2007; Bell, 1995; Rialp et al., 2005). Until quite recently, this literature had not really considered how the home regional environment of a new venture might influence its internationalization behaviour. However, a handful of recent studies have shown that being founded in a geographic industry ‘cluster’ can positively influence the likelihood of a new venture internationalizing (e.g., Fernhaber et al., 2008; Libaers and Meyer, 2011). This chapter seeks to build on these recent contributions by further probing the relationship between clusters and new venture internationalization. Specifically, taking inspiration from recent work in the thematic research stream on clusters (which spans the fields of economic geography, regional studies and industrial dynamics), the chapter explores how the emergence and internationalization of new ventures might be affected by the ‘cluster life cycle’ context within which they are founded. This issue is examined through a revelatory longitudinal case study of Ireland’s indigenous software cluster. The study investigates the origins and internationalization behaviour of ‘leading’ Irish software ventures but, in contrast to many existing studies, it seeks to understand these firms within the context of the Irish software cluster’s emergence and evolution through a number of ‘life-cycle’ stages

DESIGNING POLICIES FOR LOCAL PRODUCTION SYSTEMS: A METHODOLOGY BASED ON EVIDENCE FROM BRAZIL

Using a previously developed methodology for identifying, classifying and characterizing local production systems (LPS) in Brazil, and evidence produced by a number of case studies, the paper suggests that policies aimed at LPS (or industrial clusters) should be tailored according to a typology of clusters. This typology must take into account the cluster importance for local or regional development, its share in the respective industry, and its characteristics in terms of production structure, trading schemes, institutional infrastructure, governance structures, and social contexts. The paper starts by reviewing, from the point of view of policy-making, the theories that support industrial cluster analyses, namely those that explain clusters as: outcomes of plain agglomeration economies and increasing returns; the result of spatial dynamic processes; knowledge systems emerging from the geography of innovation and agglomeration; governance structures, and as evolving complex systems. Next, the results from an application of the methodology to Brazilian data and information and from a number of case studies are summarized. Finally, the paper suggests policy guidelines with some measures of general application, aimed at problems observed in all LPS, and some specific measures differentiated according to a typology of local production systems that resulted from the application of the methodology.

Designing Policies for Local Production Systems: A Methodology Based on Evidence from Brazil

Using a previously developed methodology for identifying, classifying and characterizing local production systems (LPS) in Brazil, and evidence produced by a number of case studies, the paper suggests that policies aimed at LPS (or industrial clusters) should be tailored according to a typology of clusters. This typology must take into account the cluster importance for local or regional development, its share in the respective industry, and its characteristics in terms of production structure, trading schemes, institutional infrastructure, governance structures, and social contexts. The paper starts by reviewing, from the point of view of policy-making, the theories that support industrial cluster analyses, namely those that explain clusters as: outcomes of plain agglomeration economies and increasing returns; the result of spatial dynamic processes; knowledge systems emerging from the geography of innovation and agglomeration; governance structures, and as evolving complex systems. Next, the results from an application of the methodology to Brazilian data and information and from a number of case studies are summarized. Finally, the paper suggests policy guidelines with some measures of general application, aimed at problems observed in all LPS, and some specific measures differentiated according to a typology of local production systems that resulted from the application of the methodology.Manufacturing Industry, Cluster, Local Production System, Industrial Policy

GoGlobal: How can contemporary design collaboration and e-commerce models grow the creative industries in developing countries?

Using previous case studies by the authors and a current live project, this paper considers whether the creative industries in a developing country (Ghana, Africa) can be nurtured through design collaboration and an e-commerce model to contribute significant economic growth through increasing international trade. The paper draws on practical experience of five annual projects, with a focus on GoGlobal Africa. Initiated in 2005, GoGlobal is a collaborative design research activity between the University of Technology Sydney, the Royal College of Art, the London School of Economics, RMIT Melbourne, and other partnering organisations. GoGlobal Africa was initiated in 2008 with 3 phases: creative studio with design students from the RCA UK and KNUST Ghana; an e-commerce process for supply, distribution and marketing; and a “hub” location to facilitate project delivery and dissemination. The context to GoGlobal is informed by the UNCTAD studies of global creative industries

Standard-Setting and Knowledge Dynamics in Innovation Clusters

Extensive research has been conducted on how firms and regions take advantage of spatially concentrated assets, and also why history matters to regional specialisation patterns. In brief, it seems that innovation clusters as a distinctive regional entity in international business and the geography of innovation are of increasing importance in STI policy, innovation systems and competitiveness studies. Recently, more and more research has contributed to an evolutionary perspective on collaboration in clusters. Nonetheless, the field of cluster or regional innovation systems remains a multidisciplinary field where the state of the art is determined by the individual perspective (key concepts could, for example, be industrial districts, innovative clusters with reference to OECD, regional knowledge production, milieus & sticky knowledge, regional lock-ins & path dependencies, learning regions or sectoral innovation systems). According to our analysis, the research gap lies in both quantitative, comparative surveys and in-depth concepts of knowledge dynamics and cluster evolution. Therefore this paper emphasises the unchallenged in-depth characteristics of knowledge utilisation within a cluster's collaborative innovation activities. More precisely, it deals with knowledge dynamics in terms of matching different agents´ knowledge stocks via knowledge flows, common technology specification (standard-setting), and knowledge spillovers. The means of open innovation and system boundaries for spatially concentrated agents in terms of knowledge opportunities and the capabilities of each agent await clarification. Therefore, our study conceptualises the interplay between firm- and cluster-level activities and externalities for knowledge accumulation but also for the specification of technology. It remains particularly unclear how, why and by whom knowledge is aligned and ascribed to a specific sectoral innovation system. Empirically, this study contributes with several descriptive calculations of indices, e.g. knowledge stocks, GINI coefficients, Herfindahl indices, and Revealed Patent Advantage (RPA), which clearly underline a high spatial concentration of both mechanical engineering and biotechnology within a European NUTS2 sample for the last two decades. Conceptually, our paper matches the geography of innovation literature, innovation system theory, and new ideas related to the economics of standards. Therefore, it sheds light on the interplay between knowledge flows and externalities of cluster-specific populations and the agents' use of such knowledge, which is concentrated in space. We find that knowledge creation and standard-setting are cross-fertilising each other: although the spatial concentration of assets and high-skilled labour provides new opportunities to the firm, each firm's knowledge stocks need to be contextualised. The context in terms of 'use case' and 'knowledge biography' makes technologies (as represented in knowledge stocks) available for collaboration, but also clarifies relevance and ownership, in particular intellectual property concerns. Owing to this approach we propose a conceptualisation which contains both areas with inter- and intra-cluster focus. This proposal additionally concludes that spatial and technological proximity benefits standard-setting in high-tech and low-tech industries in very different ways. More precisely, the versatile tension between knowledge stocks, their evolution, and technical specification & implementation requires the conceptualisation and analysis of a non-linear process of standard-setting. Particularly, the use case of technologies is essential. Related to this approach, clusters strongly support the establishment of technology use cases in embryonic high-tech industries. Low-tech industries in contrast rather depend on approved knowledge stocks, whose dynamics provide better and fast accessible knowledge inputs within low-tech clusters.innovation clusters, standard-setting, knowledge externalities and flows, knowledge alignment, mechanical engineering, biotechnology

Understanding new venture market application search processes: A propositional model.

Technology-based ventures are confronted with complex decisions on how to apply their technology platform in highly uncertain and ambiguous market environments. Based on four case studies, a dynamic decision model is developed in which we highlight the similarities between the search and learning processes in venture development contexts and in new product development contexts. This entrepreneurial search and learning process is understood as consisting of sequences of episodes – characterized by uncertainty and ambiguity - and scripts – i.e. approaches to market application search. The model implies that a venture's adaptability - i.e. its ability to move efficiently and effectively between these episodes and their related scripts - influences its survival.Case studies; Decision; Decisions; Learning; Market; Model; Processes; Product; Product development; Research; Sequences; Similarity; Studies; Technology; Uncertainty;