Entrepreneurial firms in STI and DUI mode clusters: do they need differentiated cluster facilitation?

This paper elaborates on the types of knowledge sources, actors and geographical space that are involved in innovation processes among small entrepreneurial firms located in two distinct city-based clusters in Norway with firms characterized as typical STI mode innovators (Oslo Cancer Cluster) and DUI mode innovators (Subsea cluster in Bergen). The aim of the paper is to see how, when and why firms source distinct knowledge and to what degree this aligns with their initial knowledge base and STI or DUI innovation mode. Findings show that the knowledge base and innovation mode approach hold for describing the early stages of the innovation process, suggesting cumulative path-dependent knowledge dynamics. However, at later stages, firms combine STI and DUI mode innovation logics and activate different types of sources, actors and geographical scales through combinatorial knowledge dynamics, largely pushed forward by the need to solve unforeseen challenges, to understand markets and by the need to reduce risks associated with the newness of innovations. Furthermore, we find that rigid regulatory regimes influence the dynamic interplay between sources, actors and geographical scales in the process of creating and transmitting knowledge. Based on these findings, the paper proposes cluster roles and facilitation initiatives.