Instead of low level sniping and drive by smears, how ’bout sinkin’ your teeth into this. It’s an academic paper on New Brunswick’s IT industry that “estimates a structural model of an industrial innovation cluster”. I hadn’t seen this before.
The author concludes that “Effective innovation policy must be based on plausible explanatory models of innovation.”
I have to admit that while I wish we had more rigour in our economic development planning, this paper went a bit over my head. I will reread to see if it makes more sense.
A reconceptualized model of a cluster, inspired by the Porter Diamond but including a Penrosean component, is shown in Figure 2. This model postulates pathways between the business environment, the firm’s internal capabilities and resources, and the firm’s performance. The model has two dependent variables: firm‐level capability (CAP) and performance outcomes (OUT). Firm‐level capability (CAP) is hypothesized to mediate between the environmental constructs and business performance. This is the Penrosean component of the model and it refers to dynamic alignment of internal resources (more recently conceptualized as capabilities) with business opportunities in the external environment.