Author(s)

B. G. Jean Jacques Iritié

Department of Management, Business and Applied Economics, National Polytechnic Institute Houphouet Boigny, Yamoussoukro, Ivory Coast.

This paper analyzes the effect of innovation clusters on the adoption of a general purpose technology (GPT) and on firms R&D investment levels in imperfect information situation. We developed a theoretical model of vertical relation, described as a four-step game between an upstream firm providing innovative GPT and an innovative downstream associated sector, integrator of this technology. The downstream sector ignores the quality of the GPT and we model the innovation cluster as a coordination mode of firms, improving the probability of the downstream firm to receive information about the quality of the GPT technology. Then, we determine firms equilibria (i.e. prices and technological qualities) and we showed that the effect of innovation clusters on the choice of qualities, the adoption behavior, levels of R&D investment as well as that social welfare depends on the quality of R&D activities carried out before the establishment of the clusters and a threshold effect (i.e. cluster critical mass); if the critical mass in terms of information sharing and interaction is not reached, the cluster may have negative effects. In other words, the consensual idea of expected positive effects of innovation clusters must be put into perspective.

Innovation Clusters, General Purpose Technology, Technological Complementarity, Technology Adoption, Uncertainty, Critical Mass

Iritié, B. (2018) Innovation Clusters Effects on Adoption of a General Purpose Technology under Uncertainty. Theoretical Economics Letters, 8, 2938-2971. doi: 10.4236/tel.2018.814184.