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Innovation Cluster Research
Linkages in the New BrunswickICT Innovation Cluster: Where are
the Corners of the Diamond?
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Davis and Schaefer, 2003
About as big astourism sector
High reported rate
of innovation
Export-oriented
Most are small,young, locally-
owned firms
Very high growth
rate
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Definitions ofcluster require
specification of the
nature and scope of
local inter-firm
traded and
untraded
interdependencies,
which may resultfrom co-location of
related firms, co-
located segments of
a value chain, or
inter-firm networks
(Gordon and
McCann, 2000).
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A Porter Cluster? - Goals
?Evaluate New Brunswick IT industry interms of Porters model
?Determine degree and perceivedsignificance of co-location of factors asperceived by the interviewees
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A Porter Cluster? -
Methodology
?Questionnaire
?Open and Closed ended questions
?30 pages in length
?Minimum 1 hour to complete
?Sample size 44
?Selection Criteria
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Customers
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Innovative Customers
Innovative Customers
38 86.4
5 11.4
1 2.3
44 100.0
Yes
No
No Response
Total
Frequency Percent
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Location of Innovative Customers# of Respondents
Indicating InnovativeCustomers in the Region
# of Innovative
Customers
New Brunswick 14 27 (14.7%)
Atlantic CanadaExcept New
Brunswick
4 10 (5.4%)
Rest of Canada 13 20 (10.8%)
USA Only 21 98 (53.3%)
International ExceptUSA
13 29 (15.8%)
Total 184
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Co-location and Competitive
DisadvantageCompetitive Disadvantage - Customer Distance
21 47.719 43.2
2 4.5
2 4.5
44 100.0
YesNo
Not Applicable
No Response
Total
Frequency Percent
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Competitors
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Location of Major Competitors
Location of Major Competitors
10
1
12
34
13
70
New Brunswick
Atlantic Canada Excluding New Brunswick
Canada Excluding Atlantic Canada
USA
International Excluding USA
Total
Frequency
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Importance of Monitoring
CompetitorsImportance of Monitoring Competitors
1 2.3
10 22.7
14 31.8
2 4.5
14 31.8
3 6.8
44 100.0
1.0
3.0
4.0
4.5
5.0
No Response
Total
Frequency Percent
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Difficulty in Monitoring
CompetitorsDifficulty in Monitoring Competitors
9 20.5
7 15.9
8 18.2
4 9.1
10 22.7
1 2.3
5 11.4
44 100.0
Not Applicable
1
2
3
4
5
No Response
Total
Frequency Percent
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Competitor Distance
Competitive Disadvantage - Competitor Distance
7 15.9
25 56.8
6 13.6
6 13.6
44 100.0
Yes
No
Not Applicable
No Response
Total
Frequency Percent
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Suppliers
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Critical Suppliers
Critical Suppliers
16 36.4
27 61.4
1 2.3
44 100.0
Yes
No
No Response
Total
Frequency Percent
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Location of Critical Suppliers
Location of Critical Suppliers
5 17.2
1 3.5
7 24.1
10 34.5
6 20.7
29 100.0
New Brunswick
Atlantic Canada Excluding New Brunsw
Canada Excluding Atlantic Canada
USA
International Excluding USA
Total
requency Percent
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Co-Location and
Competitive Disadvantage
Competitive Disadvantage - Supplier Distance
4 25.0
12 75.0
16 100.0
Yes
No
Total
Frequency Percent
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Research Institutes
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Research Partners
Collaboration with R&D Institutions Other Than NRC
13 29.5
23 52.3
8 18.2
44 100.0
Yes
No
No Response
Total
Frequency Percent
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Location of Research
Institutes
Location of Research Institutes Used (Excluding NRC)
9
3
7
3
1
23
New Brunswick
Atlantic Canada Excluding New Brunswick
Canada Excluding Atlantic Canada
USA
International Excluding USA
Total
Frequency
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Competitive Disadvantage of
Not Co-Locating
Does Geographic Distance Negatively Affect Your
Relationships With Outside Research Institutes?
13 29.5
16 36.4
15 34.1
44 100.0
Yes
No
No Response
Total
Frequency Percent
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Benefits of Moving
Would Your Company Gain A CompetitiveAdvantage by Moving to a Metropolitan Area?
15 34.1
26 59.1
1 2.3
2 4.5
44 100.0
Yes
No
Not Sure
No Response
Total
Frequency Percent
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Research Issues
?Significant differences were foundamong company responses in relationto :? Importance of co-location of customers
? Importance of co-location of competitors
?Can the difference in importance giveguidance where co-location is
necessary, desirable, critical?
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Market linkages, firmperformance, and innovation
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Quadrant 1:
independent
exporters (65 firms)
Quadrant 2: branches
and subsidiaries that
export (11 firms)
Quadrant 4:
independent firms
that export little or
not at all (84 firms)
Quadrant 3: branches
and subsidiaries that
export little or not at all
(19 firms)
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quadrant
4.003.002.001.00Missing
SumG
rossRevenues
fromI
Tsales(estimat
ed)
200000
100000
0
340.79 138.33 111.88 59.41% change in Reven
past 3 years
1.00 2.00 3.00 4.00
quadrant
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gazelles
?Firms that experience much higher thanaverage growth rates
?In this study, gazelles are firms that
have grown more than 73% in the threeyears between 1999 and 2001 and haverevenue of at least $100K
?By these criteria, 56 NB IT firms are
gazelles
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quadrant
4.003.002.001.00Missing
Sumgazelle
40
30
20
10
0
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gazelle
1.00.00Missing
Sum
300000
200000
100000
0
2001 international I
T revenues
2001 US IT revenues
2001 Canada IT reven
ues
2001 Atlantic Canada
IT revenues
2001 New Brunswick I
T revenues
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