Innovation capability of clusters: understanding the innovation of geographic business networks

Abstract Purpose This paper aims to explore innovation in geographic business networks and to propose a model of cluster innovation capability. The premise is that innovation is a necessity for firms and inter-firm relationships is an option for it to occur. Among these relationships, clusters stand out, with studies showing that firms in clusters tend to be more innovative. Design/methodology/approach Thus, we conducted an exploratory study of two clusters: the emerging cluster of Alto do Camaquã, in Brazil, and growing cluster of Sisteron, in France. The cases were analyzed based on elements previously established in the literature: context; collective strategy; public policy; commercialization; pro-activity; external relationships; transmission; collaboration; assimilation, transformation, and application of knowledge; governance; infrastructure; financial and human resources. Findings We obtained a model of cluster innovation capability, composed of strategic management, relationships and learning, technological and marketing development, and operational management. Originality/value The proposed model is a dynamic model as capabilities vary in their intensities according to the development stage of the cluster and its maturity time.