Evaluating the innovation capability of cluster-based firms: a graph-theoretic approach

Abstract

Purpose This paper aims to propose an assessment framework to evaluate companies' innovation capability in the context of industrial clusters. Design/methodology/approach The assessment framework was built based on the Graph-Theoretic Approach (GTA) to measure the influence of the factors and sub-factors of innovation capabilities. To quantify the level of interdependence between factors and sub-factors of innovation capability Delphi method was adopted. The authors developed five case studies in firms from an Information and Communications Technology and Creative Economy cluster in Northeastern Brazil to test the framework's applicability. Findings The results showed that identifying and evaluating the factors of innovation capability allows a larger understanding of what affects these capabilities to a greater or lesser extent and contributes to strategic decision-making. Research limitations/implications The framework evaluates the innovation capability of each firm, not providing an index for the whole industrial cluster. Besides, the framework does not consider the innovations developed by the companies through the innovation's capabilities. As the Delphi technique was adopted to analyze the levels of influence or interdependence between factors and sub-factors of innovation capability, different experts may lead to different results. Practical implications Among the managerial implications, the authors can highlight the innovation capability index as a practical performance measure to stimulate improvement initiatives regarding innovations in industrial clusters. Besides, as the proposed framework is generic, research organizations, public institutions and regional governments can adopt it to analyze innovation capabilities in cluster-based companies. Originality/value Previous industrial cluster studies have concentrated on knowledge transfer as the main attribute influencing innovation capabilities. The literature also presents assessment frameworks focusing on qualitative analyses or innovation capabilities outcomes (patents and products). Differently, the authors proposed a quantitative assessment framework considering specific factors (and sub-factors) of innovation capabilities in industrial clusters.