Innovation Ability of Small Firms in Turkish Industrial Clusters: Ankara-Ivedik Industrial Region Case

Abstract

Research and development activities (R\&D) of small firms forming innovation have to be improved because of the insufficiency of financial, technical, and human resources. Innovation ability, which would actually support firm activity, is uncommon by small firms. This fact evidently causes a disadvantage for the small firms to compete in comparison with middle and large-scale firms. However, the disadvantaged situation of small firms arising from their economies of scale can be converted to an advantageous situation by forming a network of organizations in clusters. According to the literature reviewed, small firms within clusters improve in the field of innovation by intensity of communication and interaction, relative ease of information flow, ability of creating collective learning effects, and mutual budget for R\&D studies. This study examines the existence of this interaction among firms, as in the case of Ankara-Ivedik Organized Industrial District by a survey depending upon questionnaire information.