The Innovation Mechanisms Underlying both Cutting-edge and Traditional Industry Clusters

The factors that comprise a cluster and the state of interorganizational networks will differ depending on the nature of the product, but incremental innovation that produces refined high-end goods appears to be essential for the continued growth of a cluster. This study investigates product improvement mechanisms in industry clusters, using Silicon Valley in the U.S., Cremona in north Italy, and Jingdezhen in China as case studies. In Silicon Valley, the defense, semiconductor, computer, IT, and biotech industries have advanced as industry clusters while transforming the environment and their domains. Silicon Valley is a model of a global industry cluster, as a representative example of a successful industrial cluster. Cremona is the birthplace of Antonio Stradivari, known as the world’s greatest violinmaker. Cremona’s revival as a violinmaking region happened after the establishment of a violinmaking school in 1938. Jingdezhen is a preeminent ceramics industry cluster in China, and its ceramics production began in the Han period. However, through state-run mass-production factory systems after the Cultural Revolution, the sophisticated products almost ceased to exist, and the current Jingdezhen ceramics industry appears to be something entirely different from what it was in the bygone age of prosperity. Based on these case analyses, the common factors for product improvement mechanisms in industrial clusters were found; (1) leadership by “Business Producers” who combine skills and creativity; (2) peer review; (3) discernment of high-end users; (4) and the sensitivity of tech people or artisans. The significance of this study is its attempt to grasp the innovation mechanisms underlying both cutting-edge and traditional industry clusters.