Title: Computer modelling reveals the optimal development for the organisational structure of business clusters

Authors: Mousa Al-kfairy; Souheil Khaddaj; Robert B. Mellor

Addresses: Computing and Maths, Kingston University, London, UK ' Computing and Maths, Kingston University, London, UK ' Computing and Maths, Kingston University, London, UK

Abstract: Science and technology parks (STPs) foster innovation between firms inhabiting the cluster. Networking channels are considered as integral parts of the knowledge exchange process, and therefore the innovation process. We simulated three organisational topologies for STPs; firstly, in the star model all are connected to the cluster initiative (CI), secondly the strongly connected model, when all are connected to each other, and finally the randomly connected model, where the network follows no centralised topology. Analyses used adjacency matrixes and Monte-Carlo simulation, trading transaction (networking) costs against knowledge benefit. Results show that star topology is the most efficient form from the cost perspective, and this is especially the case for start-up STPs. Later, when the cost of knowledge transformation is lowered, then the strongly connected model becomes the most efficient topology, but this transition to high transaction costs is very risky if direct ties do not quickly result in tangible benefits.

Keywords: cluster; innovation; network; tech-hub; simulation; modelling; Monte Carlo.

DOI: 10.1504/IJKBD.2019.103215

International Journal of Knowledge-Based Development, 2019 Vol.10 No.3, pp.249 - 275

Received: 13 Oct 2018
Accepted: 02 Apr 2019
Published online: 22 Oct 2019 *

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