Hot Spots and Blind Spots: Geographical Clusters of Firms and Innovation

Hot spots are fast-growing geographic clusters of competing firms. Drawing on several literature streams, we develop an evolutionary model that contrasts hot spot and non-hot spot competitors within the same industry. Initially, economies of agglomeration, institutional forces, and managers' me...

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Bibliographic Details
Published in:The Academy of Management review 1996-10, Vol.21 (4), p.1192-1225
Main Authors: Pouder, Richard, St. John, Caron H.
Format: Article
Language:English
Subjects:
Agglomeration
Business community
Business innovation
Ceramics industry
Cognitive models
Comparative studies
Competition
Ecological competition
Economic competition
Economic resources
Educational innovation
Enterprises
Equilibrium
Evolution
Extractive industries
Geography
High technology industries
Industrial policy
Innovation
Innovations
Organizational behavior
Population
Special Topic Forum on the Management of Innovation
Startups
Technological change
Technological innovation
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Summary:Hot spots are fast-growing geographic clusters of competing firms. Drawing on several literature streams, we develop an evolutionary model that contrasts hot spot and non-hot spot competitors within the same industry. Initially, economies of agglomeration, institutional forces, and managers' mental models create an innovative environment within the hot spot. Over time, those same forces create a homogeneous macroculture that suppresses innovation, making hot spot competitors more susceptible than non-hot spot competitors to environmental jolts.
ISSN:0363-7425
1930-3807
DOI:10.2307/259168