IntroductionInnovation Clusters Concept: AlfredMarshall(19810) defined it as agglomerationsof small specialised firms found in particularlocalities.British Hi-Fi Industry=Its Origins=how to develop one=Critique and Weaknesses
History and BackgroundBritish Hi-Fi is still the best in theworld, despite the presence of thelikes of Sony, Panasonic, and Canonin the music industry
1 Evidence of British Hi-Fiindustry as a Cluster?Geographical concentration in the South*High degree of specialisation*Large number of SMEs (65)*Dominated high tech Hi Fi market and wonmany international awards*High rate of innovation
2 How did it originate?It came from many differentaspects(hi-fi industry in UK), whichmeans most of the early innovation wasmade by elsewhere, not only oneperson or place, ex) Edison in 1877
3. What is spin-off, and how dothey contribute to Hi Fi Industry?Transformation of old businesses into newlines of industry.1) It resulted in more specialized companies,and created niche.2) It created more connections betweencompanies.
4. Whats the similarities of Silicon Valleyand Hi-Fi Cluster in Britain? How did theycontribute to public institutions?, 1) provided trained experts: Stanford providedlots of professionals and BBC providedtrained engineers2) set a platform: National Grid helpedwireless sets market and USA governmentinvested in the development of thetechnology.
5. Which of Markusens (1996) 4types of cluster did it belong too?Marshallian Industrial District Cluster.Reasons:1) remarkably large number (no less than 65companies)2) relatively small (25 employee or less)3) Heavy reliance of market mechanismexchange.
6. Evidence thatinnovation is a feature in acluster?Innovation doesnt always come fromspecialists , but sometimes Amateursidea(input) into the industry can bringa strong esprit resulted from hobbyistor enthusiast origins of industry.
7. Evidence that is success is resultedfrom Marshalls(1890) "agglomerationeconomics"a) A local pool of specialised labour.b) firm specialising in intermediate stage ofproduction and technology.c) knowledges of spill-overs. in this case, hi-fi inUK got benefits from numerous hi-fi shows inthe UK by being given an opportunity to meetold friends and maintain contact, which leads tomaking new connection
8. If it extends from South England toCambridge, is it still called "agglomerationeconomics"?NOToo dispersedCant achieve specializationNetworking is hard
9. How valid is Martin and Sunley(2003)critique over this instance?First, cluster can not guarantee 100% of regional andlocal economic growth (2003: 28).Secondly, competition must be examined in order toevaluate the cluster.Thirdly, it depends on perception.
10. Martin and Sunley(2003) suggests that beinguncritical over cluster concept lead to weakness-Howvalid is it?Not really as it helped Britain stand out in theglobal market.Also helped them in their innovationInvestments in R&D are put into good use.Clusters do not guarantee 100% growth
Conclusion-Clusters can be a defining factor to developa successful innovation system and economy-Clusters can create world class companiesthat can compete well in the global markets.-It has its critique, that it takes more than aperception to make it a success