The leading role of support organisations in cluster networks of developing countries

Abstract

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Previous literature on innovation in developing countries has studied the relevance of public policies and support organisations, which can compensate for the weaknesses of local innovation networks. However, from a social network approach, this issue remains understudied. Aiming to fill this gap, this paper analyses the role of support organisations in four cluster networks of Uruguay. Using data from interviews with managing directors of 265 firms and combining social network analysis with logistic regression techniques, the paper shows that organisations play two fundamental roles. First, they contribute to the overall architecture of collaborations, occupying strategic positions that keep networks connected. Second, they encourage innovation in the firms they collaborate with. In this regard, findings indicate that collaborating with different types of organisations influences firms’ innovation differently. These results have several policy implications regarding the design of cluster policies and organisational frameworks in developing countries.