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Knowledge Flow in the World of Cooperation : A Study on the Efficacy of Accredited Clusters in Hungary

Several high standard studies analyzing the effects of knowledge flow of organizations have appeared since the fact that the creation of applicable novel knowledge is fundamental to economic growth was acknowledged (ROMER, 1986). According to PORTER (2000) the regional alliance of small and medium-sized enterprises as well as supporting institutions could provide these businesses such competitive advantages that enable them to keep up with multinational companies, even in a globalised market environment. Accredited clusters, subsidized by the EU, are specific kind of alliance formations, which facilitate competence and innovation. At present (February 2010), there are 18 accredited clusters operating in Hungary – a dozen and a half company associations which met the economic and cooperative criteria defined by the EU and thus reached all the important stages of accreditation in the process of cluster development. These clusters are the subject of the present study and analysis. The first part of this paper introduces different theoretical approaches to the cluster phenomenon, including the observation and analysis of intra-cluster knowledge flow characteristics. The main purpose of the present study is to describe and assess the actual cluster formation process of accredited Hungarian clusters in order to compare them to each other and to measure them in terms of efficacy. The contrastive analysis is based on quantifiable public data and interviews carried out with cluster management leaders. We also describe the theoretical framework of an alternative methodology for monitoring cluster knowledge processes and measuring cluster performance. Knowledge transfer between cluster members is essential for innovations. The new methodology reviews and induces the measurement of emerging knowledge processes in Knowledge Flow in the World of Cooperation: a Study on the Efficacy of Accredited Clusters in Hungary 1 order to assess intra-cluster knowledge flow sector-specifically. This novel, applied methodology differs from conventional analytical practices on several points and makes use of innovative solutions in order to be more in line with the aims stated above, i.e. to capture “volatile” knowledge flow in the innovation-oriented clusters.