Measuring the performance of a regional cluster in innovation facilitation

Regional industry clusters have been promoted for several years as effective mechanisms to assist firms become more innovative and more competitive. But do they really achieve this goal, and more importantly, just how should an assessment of cluster performance in supporting and facilitating innovation within its members, be undertaken? In this paper we report on a study of a regional IT cluster in Western Sydney, Australia, develop some criteria for assessing the innovation facilitation performance of industry clusters, and discuss the cluster in relation to these criteria. We suggest that engagement with a cluster may enhance the innovation capacity of a firm, and the type of required innovation support varies significantly with the maturity and absorptive capacity of individual firms.