Firm Creation, Firm Evolution and Clusters in Chile’s Dynamic Wine Sector: Evidence from the Colchagua and Casablanca Regions

37

Olavarria et al (2008) says that other factors affecting a firm’s relationships in a cluster
are its ability to absorb information, ability to transfer knowledge and company size.
All these factors of knowledge affect a company’s ‘embeddedness’ into a knowledge
network (Giuliani, 2006). Higher embeddedness equals higher innovation. Firms with
bigger knowledge bases are considered technological leaders and sought out by other
companies if their own cognitive distance is not too high, hence they are more central in
the networks and have a higher density of networks. Whereas firms with weak knowledge
bases do not offer anything to other companies and neither do they have the ability to
absorb knowledge (Giuliani, 2006).

Therefore the question of the extent to which firms within the two valleys of study
exchange knowledge needs to be addressed. Three types of networks can be identified
within a cluster:

1) Those of all communications within wineries of a valley.

2) Those of knowledge flows between wineries of a valley

3) Those of knowledge flows to wineries within the valleys but also sources outside
valley such as suppliers, consultants etc

Both Giuliani (2006) and Olavarria et al (2008) show that the network with most linkages
in Colchagua valley is the first network, both finding a density of linkages of 0.34.

Unfortunately these networks do not diffuse knowledge; if they were then knowledge
would be distributed more evenly throughout firms in a cluster.

<<   35   36   37   38   39   40   41   >>

More intriguing information