This document discusses multidimensional networks and the changing nature of inter-firm collaboration. It analyzes how cluster research has shifted from analyzing agglomeration forces to examining knowledge exchange within clusters. Specifically, it examines how interfirm alliances and networks are an important form of innovative activity. The document also presents a case study on the automobile and machinery sector in Austria that maps the network of interactions between firms and research institutions. It finds that networks are dominated by knowledge-intensive relations and knowledge diffusion is selective depending on firm capabilities. Clusters can act as institutions that generate and diffuse knowledge, leading to higher competitiveness, but there are no automatic agglomeration effects.

2. Multidimensional networks:
the changing character and framework
of interfirm collaboration
Michael Steiner
Michael Ploder
13th TCI Annual Global Conference, New Delhi
Delhi, 29th November - 3rd December 2010

3. CLUSTERS, KNOWLEDGE and
COMPETITIVENESS
- new focus of cluster research:
from analysis of forces of agglomeration to forms and
contents of knowledge exchange
- successful regions display innovative capacity, create
knowledge and stay one step ahead of competitors
- shift in emphasis: from material links to immaterial
knowledge flows within clusters
- interfirm alliances and networks as important form of
innovative activity

4. - Marshall (1890/1920), Weber (1929), Hoover (1948),
Myrdal (1957), Kaldor (1972), Dixon/Thirlwell (1975),
Storper (1995, 1997), Granovetter (1994), Amin/Thrift
(1995), Mariotti/Delbridge (2001), Gay/Dousset
(2005), Belussi (2006), Gordon/McCann (2000,
GEOGRAPHICAL AGGLOMERATION
and LOCAL NETWORKS
(2005), Belussi (2006), Gordon/McCann (2000,
2005), Rychen/Zimmermann (2008),
Reid/Smith/Carroll (2008) ….
- externalities are widely enforced by informal
dimensions, need for “institutional thickness”
- need for micro-perspective – selective interaction of
actors
- important to distinguish between content (type of
relation) and form (social structure of relation)
- intersectoral differences in spatial agglomeration
depending of prevailing sectoral + technological
pattern

5. SOCIAL NETWORK ANALYSIS in a
QUALITATIVE CONTEXT
- case study on automobile / machinery sector in Styria /
Austria: 18 producers, 5 technical business services, 9
R+D institutions
- interaction: DELIV
PRE-COMP R+D
COM R+DCOM R+D
- resulting network
- main results:
density strongest for PRE-COMP R+D
different position of actors in network as to centre /
periphery, kind of interaction, gate-keeper
depending on firm-specific characteristics (size, R+D-
intensity, export-orientation …)
- also: human resources and regional labour market
discriminative capabilities and heterogeneous
strategies of firms
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6. Fig. 1: Network of firms and knowledge generating institutions
Source: present authors
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7. - changing historical background resulting in changing
role of geographical agglomeration:
learn to cooperate, develop potential for innovation,
focus on market niches, specialize technologically
- different dimensions of interaction:
NEW PERSPECTIVES for CLUSTERS
and COMPETITIVENESS
- different dimensions of interaction:
network is dominated by knowledge intensive relations
- diffusion of knowledge within clusters highly selective,
depending on firm capabilities and firm behaviour
- no automatic agglomeration effects but:
clusters as institutions for knowledge generation and
diffusion leading to a higher competitiveness