Abstract - Quest for Global Competitiveness - Universidad de Puerto ...

The social-network model argues that there is more order to inter-firm interactionsand less order to intra-firm interactions than economic models would imply (Granovetter,1985). The reason for this is that strong interpersonal relationships can transcend boundaries;with the result that many inter social interactions may be stronger than their intra-firmcounterparts (Gordon & McCann, 2000).Although there is nothing inherently spatial about the social-network model, it hasexplicit spatial applications (Gordon & McCann, 2000). This is because social networks are aform of durable social capital, created through a combination of social history and ongoingcollective action. In this sense, their strength is inherently problematic, depending upon aprior accumulation of trust, circumstances which facilitate monitoring of others’ behavior, asource of leadership and/or a sense of common interest, as well as the expectation ofsignificant gains (Olson, 1965).Research has indicated that social networks, in the form of collaborative innovationgrids, can facilitate knowledge flow and diffusion (Gloor, Paasivaara, Schoder, & Willems,2008). Our study of knowledge management and flows in the emergent and developedbioscience clusters of Puerto Rico and Cleveland corroborates this finding.While we designed the inquiry to explore industrial cluster elements that potentiallyimpact the process of knowledge creation, absorption and retention, we concluded byrecognizing that social networks, including entrepreneurial ecosystems and foreign directinvestment influence and moderate the knowledge transfer process. Knowledge creation,absorption and retention mediate the impact of the synergies generated amongst local agentson regional industrial cluster competitiveness. Our revised model is presented below inFigure 7.31