INNOVATION CLUSTERS: SOCIAL LEARNING AND BUSINESS INCUBATION
INNOVATION CLUSTERS: SOCIAL LEARNING AND BUSINESS INCUBATION

Summary/Abstract: A sustainable innovation is more expensive than a regular one but it may lead to long term benefits and durable competitive advantage, espe¬cially if many firms from the network collude or act within constrained envi¬ronments such as business incubators. The opinion formation process, which leads to sustainable innovation, may be viewed as a collec¬tive cognitive process resem¬bling that of branding and re-branding. Technological innovations can be viewed as se¬quen¬ces of cost reduc¬¬tion events and, in a many-firm setting, social learning which leads to sustainability-oriented behaviour depends on (mutual) trust relations. The experimental modelling part of the paper illustrates selected aspects of the concept just outlined by developing a stylized dynamic model of the firm.

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