Evolution of innovation capability based on network structure: a study of equipment manufacturing industrial cluster

Innovation capability is the main source of cluster's competitive advantage. The purpose of this paper is to explore the evolutionary features of innovation capability of equipment manufacturing industrial cluster and find out methods to improve it from the perspective of network structure. Through analyzing characteristics of equipment manufacturing industrial cluster, this paper points out four kinds of entities within its network and identifies the signification of its network structure. By applying social network theory, from dimensions of network intensity and density, the effects of network structure on innovation capability of equipment manufacturing industrial cluster are discussed. The evolutionary features of innovation capability based on network structure at each phase during cluster's life cycle are also expatiated. The result shows that, in order to enhance cluster's innovation capability, it is imperative to optimize the network structure of equipment manufacturing industrial cluster by promoting interactions between entities within cluster and strengthening cluster's ties with external environment.