Collective Learning Processes, Networking and 'Institutional Thickness' in the Cambridge Region

Abstract

Investigates regional collective learning processes and networking by small and medium sized enterprises (SMEs) in the Cambridge region. Synthesis of the theoretical literature shows that the most useful definition of "regional collective learning" focuses on links between firms via the regional labor market, emphasizing shared knowledge found within the "innovative milieu." Using this framework, data are studied from a 1996 interview survey of 50 technology-intensive SMEs in the Cambridge area, conducted by the ESRC Centre for Business Research. The CBR survey found that the University of Cambridge- as a large research institution with liberal policies regarding collaboration, and a small group of large local R&D consultancies, served to enhance the cultural preconditions for learning in the area. This is supported by the many university spin-offs, the local research-based business community, and a high degree of researcher recruitment and collaboration. For example, 88% of technology intensive firms started as spin-offs from existing Cambridge firms, and at least 75% maintain close links with other local firms. However, results also show that Cambridge's innovative milieu is dependent upon the wider network of non-local inter-firm relations, as well as the knowledge conditions spread through rapidly changing technologies and market opportunities. The extent of Cambridge's "institutional thickness" is considered, defined as its interlocking web of supportive organizations and institutions such as trade associations and local authorities. Results show that Cambridge had achieved some level of "institutional thickness" by 1996, including a diversity of supporting businesses and such developments as numerous science parks and the St. John's Innovation Centre. The study concludes that the empirical evidence of Cambridge's dynamic high technology cluster supports the theoretical framework advancing regional collective learning. (CJC)

Keywords: Institutional thickness, High technology firms, Learning networks, Spinoffs, University spinouts, Regional markets, Labor markets, Clusters, Knowledge transfer, Interfirm alliances, Institutional alliances, University-firm relations, Information networks, Technology innovation, Cooperative research