ABSTRACT
Technological heterogeneity is central to the evolution of clusters (Menzel & Fornahl,
2010). If clusters possess a diverse range of firms, institutions and industries, they are
more able to grow and transform into novel clusters under conditions threatening
decline (Menzel & Fornahl, 2010). A cluster emerges when the focal points of local
firms converge upon one technological area, creating stable cluster networks over time
(Menzel & Fornahl, 2010). In contrast, a low level of internal technological diversity
can lead a cluster to exhaustion. The view of technological heterogeneity as a driver of
cluster growth is still in its emerging stage, so beyond this greater level of generality little
insight exists into the precise details of how and why this cluster feature is so important for
cluster performance. However, the view that technical change is tightly interwoven in the
fabric that underpins growth processes has long been a major topic of enquiry for evol-
utionary economists (Dosi, 1982, 1988; Freeman, 1982; Rosenberg, 1982). Within this
body of literature, some scholars have investigated the types and range of sources of tech-
nical change and the importance of technological capabilities for their translation into firm
performance (Bell & Pavitt, 1993; Hobday, 1995). This paper seeks to apply the insights
from theories of technological capabilities to characterize technological heterogeneity and
to investigate the factors that are important for its economic exploitation in creative indus-
tries clusters.
