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  • Publication
    Supporting the Formation of External Absorptive Capacity for ICT Cluster Development
    (International Public Management Network (IPMN), 2013-09-05) ;
    In times of economic crisis, innovative technology clusters are seen as less vulnerable and thus as a promising approach for sustainable development. Consequently, many European cities and regions have invested heavily in the development of local information and communication technology (ICT) clusters. However, the numerous cluster development paths in different local and national contexts led to different, sometimes negative, results. The question remains how cities and regions can support ICT clusters under short technology lifecycles and increasing global competition. This paper answers the question from an external absorptive capacity (EAC) perspective. EAC, the ability of an organization to identify and recognize the value of externally generated knowledge, to learn from and with partners, and to transfer knowledge back to the organization, has been regarded as substantial for the development of economic clusters. Based on EAC, companies can react faster to rising challenges, develop and test innovations earlier, and create additional benefits along the value chain. However, until now it has not been analyzed how cities and regions could support the formation of EAC in ICT companies. Using a case study of a Swiss ICT cluster, we analyze the potential of EAC in ICT companies and suggest opportunities for cities and regional authorities to support its development. Our results show several innovative approaches and describe new roles for cities and regional authorities to shape a beneficiary environment providing access, establishing contacts, and support companies and start-ups with cooperation attempts and patent rights. These activities would support the identification and learning of EAC metaroutines and thus the innovativeness of the established companies and start-ups as well as the ICT cluster as a whole.