Abstract:

The aim of this research is to examine the importance of the nature and spatial dimension of knowledge sources on innovativeness of local clusters based on the regional innovation system approach. First, we introduce the “local buzz” and “global pipeline” argument. Second, we propose a conceptual framework incorporating two spatial dimensions of knowledge sources; local knowledge networks and global knowledge linkages, which include knowledge flows from inward FDI to local firms as a part of global knowledge linkages. Third, we use qualitative analyses and firm survey data from a Guangzhou software cluster to show that global knowledge linkages and local knowledge networks are of similar importance to the innovativeness of local firms in cluster, especially for local innovative firms. Customers, competitors, consultants and new personnel are the four most important knowledge sources to the innovativeness of local firms from both local knowledge networks and global knowledge linkages. The local firms that are most innovative seem to gain knowledge more through global knowledge linkages than local ones. Finally, some policy implications, based on the research, are identified.