The Cluster Innovation Network Co-Operation, Network Openness, And Cluster Performance In The Environment Uncertianty

The firms gather together in a region and form an industry cluster which has played an important role in regional development and industrial innovation. The cluster firms establish network relationships for technology co-operation and knowledge transfer. The cluster innovation network consists of relationships among local firms, research agents, public agents, universities, and other organizations, and has become the important organizational pattern of innovation activities.The network co-operation relationship among network members is benefited for transfer and use of technology, knowledge, information and new ideas among the network firms and other members. Therefore the degree and quality of relationships among network members have positive effects on innovation and cluster performance. However, the network pattern of cluster innovation has gradually occurred some risks and problems. In fact, the high degree of network co-operation in innovation does not essentially result in high degree of performance in some regional industry clusters. The network proximity and relationship dependence are the cause of formation of an industry cluster, but also the reason for rigid and lock-in of the cluster firms in innovation. This is because the network characteristics make the network being unable to adapt to fast changing technology and market environment, and also respond to technology changes slowly. As a result, the cluster firms have been locked into a trap.On the other hand some studies emphasize the importance of open innovation model and knowledge exploring. It asks to break up the border of the cluster network, pay attention to network openness and dynamics, such as diversity of network members, new members affiliating, and cross-network relationships. They argued that the cluster innovation network has to enhance its ability to set up new relationships and to explore new knowledge, so that the network can extend its life cycle and play a role in technology innovation.More importantly, The effects of cluster innovation network co-operation and network openness have been changing according to the change of external technology and market environment that the network are embedded in. The cluster firms respond to the external environment change by re-arrange the relationships between them and other actors. In other words, the cluster innovation network must change along with the technology and market environment change. Therefore, it must introduce the environment variables and network openness variables into the research framework to understand how the cluster innovation network works. In the thesis, it uses environment uncertainty to measure the external environment conditions.The thesis focuses on resolving such a question:How the industry cluster develops actively when maintaining the innovation network model? The research contents include (1) the relationship between network cooperation and the cluster performance, and the effects of environment variation on the relationship.(2) the relationship between network cooperation and the cluster performance, and the effects of environment variation on the relationship,(3) the relationship between network cooperation and openness,(4) In the evolution of the cluster innovation networks, the relative effects of the network co-operation, openness on the core cluster firm’s innovation activities and performance at different stages of evolution. At last, it looks at management and policy implications.In the thesis, it acquires some research findings by quantitative and statistical analysis as the following.(1)When facing external changing technology and market environment, it must introduce new variables to measure the effects of cluster innovation network on the cluster performance. For making the innovation network work well, it not only depends on those characteristics inside the network, but also depends on characteristics outside the network but is closely related to the network. The characteristics from the two sides play different roles.(2)The external characteristics make effects on the cluster network and performance. However, the external technology variables and market variables play different roles. When the external technology uncertainty is higher, the effects of network openness on the cluster performance are stronger. The network openness means the strong cross-network relationship and new member joining-in.When the external technology and market uncertainty is relatively stable, which suggests that the cluster has formed for quite a time, the effects of network co-operation is significant on the performance. However, since the quality of the network co-operation is low in knowledge transfer, the dependence on such a co-operation relationship may lock firms into function and knowledge rigidity.When the external market competition degree is higher, the network co-operation makes significant effects on the performance. It suggests that it is not true to see the useless of the network co-operation when the degree of any external characteristics is high. When the cluster firms face strong market competition from firms in other regions, the co-ordination among local firms, the easy cut of costs by firms working together, and easy access to market information play an important role.(3) The negative relationship between the network co-operation degree and network openness has not been proved. It suggests that the change of the network openness can provide the cluster firms with new knowledge and information, but not to worry about the constraint of the network co-operation relationship. The current network co-operation can play the role in innovation, but not to worry about the disintegration of the network caused by network openness(4) The industry cluster faces fast changing external environment. When the degree of both technology and market uncertainty are high, particularly the technology uncertainty is much higher, it must take advantage of the network openness. When the market competition degree is higher, it must take advantage of the network co-operation. When both are stable, it must improve the quality of the network co-operation and keep the network to be open.On the other hand, the results from case studies support and explain the above research findings in details.1) In the growth stage of the development of the cluster network, the network co-operation plays an important role in helping firms establishing business relationships, acquiring market and product information, leading to the correct innovation direction, forming social capital for innovation, and conducting technology co-operation activities. It explains the way and method of network co-operation to be used in innovation.(2) In the mature stage of the development of the cluster network, the function of the network in knowledge transfer has weakened, and the limit of the network function on business relationship set-up becomes obvious. Some firms adapt to the changes by developing new cross-border relationship for knowledge and innovation, and meanwhile keeping old relationships with some network members for cost reduction and mass production. Then the firm has developed to become so called the core firm, but others declined or maintain the production difficultly. This explains why the network co-operation relationship has lost its effects in some clusters. When about the cluster has developed for20years, the cluster network structure has changed largely; the core firm has controlled the network. Not all firms declined while the cluster network declined, some firms may break up the network and lead to new network.(3) In the high-tech industry cluster, the cluster firms pay much attention to the external relationship with other innovation actors across the region, which suggests they take advantage of the network openness. The local network is used to set up the relationship with local public agent, government agents, etc, for acquiring financial and policy resources for innovation along with the cluster developed into the mature stage, the firms began to set up local relationships with R&D institutes and acquire human resources. In the high degree of the technology uncertainty, the weak local embedness of firms can help firms to avoid the risks for fast changing environment.(4) From the firm’s view, the developments of the industry clusters has shown some weaknesses. The uncertainty of production and fast change of product types have interrupted the network co-operation relationships and declined the knowledge accumulations. It also leads to the frequent network member change. When the network develops into the mature stage, homogenization of production leads to collective imitation and plagiarism, losing power of innovation. The internal relationships of network members lack of trust and stability. (5)The characteristics of cluster innovation network are different in different stage of the development of the network. Whatever the stage is, the core firm is able to adjust the relationship inside the network, and pay attention to innovation by learning and integration. The core firm acquires knowledge and information through cross border relationships. Therefore, for the current Chinese industry clusters, it is more important to take advantage of network openness than the network co-operation. Only clusters of firms in our country have been greatly improved in the original innovation and integrated innovation ability, the effects of network co-operation on performance can be greatly enhanced, then the vitality and the competitive power of regional industrial clusters can greatly prolong and truly realize.