Creating open innovation cultures in cluster environments

Research Briefing

Keywords: open innovation, innovation, information asymmetry, trust, cluster networks, sectoral clusters, agglomeration effect, learning orientation, open innovation culture

A range of previous studies found that organisations tend to perform better when they are established and located in clusters of other similar sector organisations. The question is why does this performance enhancing phenomenon occur?

A number of studies have pointed to the development of open innovation as being part of the answer as to why firms and organisations located in clusters tend to have superior performance, compared to organisations and businesses not located within a sectoral cluster.

Research in 2017 and 2018 into the open innovation landscape and other previous studies have shown that there are a number of intra-organisational factors which have a significant impact on the effectiveness of open innovation in organisations, including:

  1. Organisationalculture–particularly in terms of’ not invented here ‘or’ not sold here’ cultural beliefs
  2. Informationasymmetries–this refers to hidden(to other organisations) information and characteristics within a network
  3. Trust
  4. Proximitytoasectoralcluster
  5. Geography

A new study has looked at the relationship between the complex interactions of these factors and how they impact open innovation.

This research briefing will be useful to anyone involved in developing a more innovative culture in an organisation.

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Sofronio Jadulco

Sophie is a core member of the Oxford Review. She started working with us in 2017 and hands a diverse range of really important jobs from social media to marketing and customer support. Sophie is the efficient member of the team, making sure all those background tasks get done just right. Without her, almost none of what happens in the background would get done.