Knowledge hubs and knowledge clusters: Designing a knowledge architecture for development.

With globalisation and knowledge-based production, firms may cooperate on a global scale, outsource parts of their administrative or productive units and negate location altogether. The extremely low transaction costs of data, information and knowledge seem to invalidate the theory of agglomeration and the spatial clustering of firms, going back to the classical work by Alfred Weber (1868-1958) and Alfred Marshall (1842-1924), who emphasized the microeconomic benefits of industrial collocation. This paper will argue against this view and show why the growth of knowledge societies will rather increase than decrease the relevance of location by creating knowledge clusters and knowledge hubs. A knowledge cluster is a local innovation system organized around universities, research institutions and firms which successfully drive innovations and create new industries. Knowledge hubs are localities with high internal and external networking and knowledge sharing capabilities. Both form a new knowledge architecture within an epistemic landscape of knowledge creation and dissemination, structured by knowledge gaps and areas of low knowledge intensity. The paper will focus on the internal dynamics of knowledge clusters and knowledge hubs and show why clustering takes place despite globalisation and the rapid growth of ICT. The basic argument that firms and their delivery chains attempt to reduce transport (transaction) costs by choosing the same location is still valid for most industrial economies, but knowledge hubs have different dynamics relating to externalities produced from knowledge sharing and research and development outputs. The paper draws on empirical data derived from ongoing research in the Lee Kong Chian School of Business, Singapore Management University and in the Center for Development Research (ZEF), University of Bonn, supported by the German Aeronautics and Space Agency (DLR).

Knowledge Management System for Cluster Development in Small and Medium Enterprises

Many countries such as Canada, Japan, Korea and France gains their competitive advantage through the utilization of clusters development. A cluster contains many Small and Medium Enterprises (SMEs) operating in the same or similar industry strongly connected with each other to produce good and services.,In developing country , especially, Small and Medium Enterprises (SMEs) take very important role to their economic. Most governments, as facilitator, support cluster through initiate help and encourage SMEs' linkage to reach the concept of industry cluster. Many literature reviewed claimed that the most difficult processes in creating a cluster is the development and sustain the collaboration to connect these SMEs together. After some investigation, the problem of creating SMEs connection is information sharing at micro-economic level.. Knowledge sharing is one of the most important key success factors of cluster management to gain collaboration among SMEs since there are abundant of explicit and tacit knowledge within each SMEs in a cluster. Naturally, most firms do not want to share their business information and knowledge. In reality, however they needs these information to successfully manage their business cluster. It is crucial and necessary we find out what kind of information or knowledge they want to know and shareable among them in order to manage cluster successfully. Many operation management techniques already existed in many firms. One of the ways to help knowledge sharing operate successfully using information technology as a tool is directed to Knowledge Management System (KMS). This methods can help facilitate the communication and information flow and needs to be investigated further to help maintain the cluster collaboration and knowledge sharing.. This paper propose framework and methodology for analyzing, industry cluster for the sustain the lifecycle of cluster.

Knowledge hubs and knowledge clusters: Designing a knowledge architecture for development.

With globalisation and knowledge-based production, firms may cooperate on a global scale, outsource parts of their administrative or productive units and negate location altogether. The extremely low transaction costs of data, information and knowledge seem to invalidate the theory of agglomeration and the spatial clustering of firms, going back to the classical work by Alfred Weber (1868-1958) and Alfred Marshall (1842-1924), who emphasized the microeconomic benefits of industrial collocation. This paper will argue against this view and show why the growth of knowledge societies will rather increase than decrease the relevance of location by creating knowledge clusters and knowledge hubs. A knowledge cluster is a local innovation system organized around universities, research institutions and firms which successfully drive innovations and create new industries. Knowledge hubs are localities with high internal and external networking and knowledge sharing capabilities. Both form a new knowledge architecture within an epistemic landscape of knowledge creation and dissemination, structured by knowledge gaps and areas of low knowledge intensity. The paper will focus on the internal dynamics of knowledge clusters and knowledge hubs and show why clustering takes place despite globalisation and the rapid growth of ICT. The basic argument that firms and their delivery chains attempt to reduce transport (transaction) costs by choosing the same location is still valid for most industrial economies, but knowledge hubs have different dynamics relating to externalities produced from knowledge sharing and research and development outputs. The paper draws on empirical data derived from ongoing research in the Lee Kong Chian School of Business, Singapore Management University and in the Center for Development Research (ZEF), University of Bonn, supported by the German Aeronautics and Space Agency (DLR).knowledge; knowledge and development; industrial agglomeration; knowledge hub; cluster; space

Factors shaping the international knowledge connectivity of industrial clusters: a comparative study of two Latin American cases

Recent research has emphasized that success of industrial clusters is not only driven by intra-cluster knowledge sharing (“local buzz”) but also by externally sourced knowledge (“global knowledge pipelines”). This article examines the factors that determine the channels through which clusters connect with global knowledge pipelines depending on the structure of the global value chain within which they are inserted, their knowledge base and their stage of evolution. Building on a comparative case study of the salmon farming cluster in Chile and the software cluster in Costa Rica, we adopt an evolutionary perspective based on historical analysis to better understand how the configuration of clusters’ international knowledge linkages shifts over time. Our findings suggest that (i) the more hierarchical the global value chain structure, the less room for knowledge co-creation between local and foreign actors; (ii) clusters relying on analytical knowledge bases opt for more formal and coordinated links with high involvement of public actors, whereas in clusters relying on synthetic knowledge bases international knowledge interaction is based on less formal links mainly between business actors; and (iii) as clusters evolve the channels through which they connect with foreign knowledge increase in number and new “hybrid” varieties develop

Knowledge Management As an Economic Development Strategy

The United States is shifting to an information economy. Productive capability is no longer completely dependent on capital and equipment; information and knowledge assets are increasingly important. The result is a new challenge to the practice of local economic development. In this information economy, success comes from harnessing the information and knowledge assets of a community and from helping local businesses succeed in the new environment. Knowledge Management (KM) can provide the tools to help economic development practitioners accomplish that task. KM is a set of techniques and tools to uncover and utilize information and knowledge assets -- especially tacit knowledge. Economic development organizations can use KM tools to enhance external communications of local companies including marketing and to promote internal communications within local businesses and help companies capture tacit knowledge. More importantly, they can use those tools to uncover and develop local intellectual assets, including helping develop information products, and helping identify entrepreneurial and business opportunities. KM tools are also useful in developing local economic clusters. Finally, these tools can be used to enhance external knowledge sharing among the economic development community and to capture and share tacit knowledge within an economic development organization

Creative clusters: a new era for SMEs?

Objectives: The paper illustrates how the characteristics of industry clusters are revived in a new era for SME networks. It explores how a succession of industry shocks - increased global competition, recession and reduced policy support - have stimulated an innovative response in creative SMEs. The paper goes on to investigate the clustering experience of a small group of creative entrepreneurs in pursuing networked activities, with a view to identifying lessons that can be learnt to support other business-led, emergent clusters. Prior Work: Geographical industry clustering provides district advantages of pooled resources, proximity to suppliers and markets, knowledge sharing and cultural exchange (Saxenian, 1994; Piore and Sabel, 1984; Reid et al, 2008). Within a cluster, the SME’s capacity to innovate is linked to co-opetition, supportive infrastructure, vertical and horizontal interdependencies (Porter, 1998; Doeringer and Terkla, 1995) and Rosenfeld’s ‘associative economy’ (2005:5). Saxenian and Hsu (2001) illustrate how district externalities spillover across borders, while Aage and Belussi (2008) find that innovative clusters obtain competitive advantage from external-to-thedistrict influences. Approach: The research is based on a single case study of 3 micro-enterprises from Nottingham, UK, and their international collaborators. Compiled from observations, interviews and documentary analysis, the case tracks the progress of the group over eighteen months. The SMEs are embedded in a cluster of designer-maker entrepreneurs, emergent from Nottingham’s traditional textiles manufacturing sector. Results: The results build on Saxenian and Hsu (2001) and Aage and Belussi (2008) findings in which SMEs benefit from internal district externalities while also looking outside of the cluster in a process of mutual knowledge sharing. Successive industry shocks appear to have fostered collaboration and innovation (after Deoringer et al, 2009) stimulating a cycle of knowledge spill-overs that further cluster advantages. Competitive advantage is observed in the initiating firms, other SMEs within their cluster networks, associated institutions and an extended, international network of SMEs. Implications: The results reveal the opportunity for SMEs to embrace more innovative approaches to collaboration, although not without risk. Further research advocates a broader field of enquiry, and longitudinal analysis of the success and potential advantages of such cases. Value: The paper revives the debate on clustering by SMEs, providing a rich source of data to enhance the provision of business support and knowledge transfer activities in what Enright (2001) terms ‘wannabe clusters’. After Saxenian and Hsu (2001) collaborative networks have the potential to create competitive advantage for SMEs and rejuvenate traditional industry clusters

Digital Genre: a Mechanism for Knowledge Sharing and Reuse in Business Clusters

The purpose of this study was to identify the knowledge transfer mechanisms in project bidding for two business clusters in New Zealand, and how ICT played a role in facilitating a "virtual space" for sharing and re-use of these mechanisms. Genre Systems was the theoretical framework adopted to guide this inquiry and to build on further theory. Within the context of this study, genres are the knowledge transfer mechanisms that communicate information and knowledge to members of the community, following specific social rules. The genres and the way they are being employed contribute towards explaining how knowledge is shared and reused by a community. Action research methodology was used to direct data collection and analysis, and validate how the study was carried out. The study comprised of one action research cycle, which has been divided in five stages: Diagnosis, Planning, Development, Evaluation, and Specifying Learning. Mapping the clusters' collaborative interactions during project bidding helped to identify the knowledge transfer mechanisms. This allowed the identification of an ICT solution that could improve project bidding, and identification of how this knowledge could be stored for reuse in future bids. One of the clusters decided to work together with the researcher towards the design of a new portal to address their project bidding needs. The portal took six iterations to complete and went live in November 2005. A database, several "digital genres" (since these genres exist in an electronic medium), and some procedures were created to facilitate knowledge transfer for the cluster's project bidding process. The team had the opportunity to reflect on the whole experience, identify potential features and genres to incorporate in the portal, and start thinking how they could improve the development process in future interventions. The introduction of ICT encouraged the cluster to develop digital genres that were more dynamic and flexible than the ones used before then. The main finding of the study is a five-step process to create digital genres based on the activities carried out by the team: finding reference points for the digital genre; defining the social rules for the digital genre; embedding the social rules in the template; testing the template; and legitimising the digital genre. Further findings discussed the "natural" and "induced" ways for a cluster to increase its knowledge-base. The first instance takes place during the normal practices of cluster members working together towards business opportunities over a period of time, whereas the later instance is triggered by a specific event or initiative. In this study, the decision by the cluster to introduce website and database technology to assist in managing their knowledge-base provided an opportunity to explore the role of ICT in increasing the cluster's knowledge-base. Final findings showed that a project of this nature not only has to overcome the common IT development challenges (budget, project management, user buy-in), but also those derived from working with a team of volunteer people from different organisations, such as in the case of a cluster

Discovering Business Area Effects to Process Mining Analysis Using Clustering and Influence Analysis

A common challenge for improving business processes in large organizations is that business people in charge of the operations are lacking a fact-based understanding of the execution details, process variants, and exceptions taking place in business operations. While existing process mining methodologies can discover these details based on event logs, it is challenging to communicate the process mining findings to business people. In this paper, we present a novel methodology for discovering business areas that have a significant effect on the process execution details. Our method uses clustering to group similar cases based on process flow characteristics and then influence analysis for detecting those business areas that correlate most with the discovered clusters. Our analysis serves as a bridge between BPM people and business, people facilitating the knowledge sharing between these groups. We also present an example analysis based on publicly available real-life purchase order process data.Comment: 12 pages. Paper accepted in 23rd International Conference on Business Information Systems (BIS 2020) to be published in a proceedings edition of the Lecture Notes in Business Information Processin

Mischung: Possible!

Mischung: Possible! offers basic knowledge on mixed-use planning based on a case study of an urban development project. The scenarios include mobility, care work, zero emissions, the sharing economy, creative clusters, “fair business,” networked services, and urban manufacturing. The goals are to deliver both collective and individual added value and to develop innovative buildings in an “urban base.