THE EMERGENCE OF INNOVATION-BASED WIRELESS CLUSTERS: QUALITY AND TIMING MATTER

Abstract

This study compares the emergence of four wireless clusters in the 1970s and 1980s. Two of them, Calgary in Canada and Finland, initially pursued rather similar service innovations for not very different markets but with very different outcomes, which raises the question why. One major reason that emerges from the reviewed extant research on cluster emergence and innovation diffusion concerns the differences in timing and quality of the initial innovations, affecting their respective perceived diffusion attributes, and market growth and extent. The initial innovation in Finland was well received, diffused rapidly and eventually globally, and led to a positive spiral spurring the industry on to take a global lead. In the case of Calgary, however, it was un-competitive in the broader international market, forcing the anchor firm to adapt and reorient. The study analyses and compares the characteristics of the respective initial innovations and their impact on the outcome, and concludes with a discussion and some propositions on cluster emergence. Enhanced understanding of nascent clusters, especially regarding the role of globally attractive initial innovations and their diffusion quality and timing, should provide value for both scholars and practitioners.