Innovation, networking and the new industrial clusters:: the characteristics of networks and local innovation capabilities in the Turkish industrial clusters

Elaborating on the literature on industrial districts, this paper suggests that innovation and networking are the two key issues, which provide the new generation industrial clusters' competitive capacity in the globalization process. The paper presents the findings on the innovative and networking capabilities of the three important industrial clusters of Turkey based on the data collected from the sample firms in each of these industrial clusters through in-depth interviews. The findings clearly show the importance of local and national networking as well as global linkages and confirm the positive relation between intensity of local networking and innovativeness. Moreover, the paper provides evidence that firms within global networks have higher numbers of innovations than firms with higher intensity of locally embedded linkages.