Managing Innovation Clusters: A Network Approach

Abstract

Innovation clusters have attracted increased investment worldwide to strengthen regional innovation. However, these clusters have suffered from high failure rates. This trend is not surprising as the existing literature places an inadequate focus on monitoring the effectiveness of such clusters and developing appropriate strategies to boost their success. This paper investigates approaches for effectively managing innovation clusters using a live Australian case study of the Tonsley innovation cluster, an ambitious, integral solution for economic renewal from a declining traditional manufacturing economy towards advanced manufacturing. Extending network management theory, the study contributes to our understanding of important elements in the formation of innovation clusters and its underlying networks; the management and orchestration of key stakeholders; and the performance monitoring towards achievement of anticipated outcomes. It offers important strategic implications for government, university and industry leaders in effectively managing innovation clusters.