Networking, absorptive capacity, science parks ∼ a proposed conceptual model for firm innovative performance

This paper elaborates on current literature on science parks, focusing on how networking and absorptive capacity affect firm innovative performance. To fulfill the purpose of providing a systematic literature review, selections of existing empirical studies and literature studies have been organized on the basis of the following three dimensions: (1) science parks; (2) networks; and (3) absorptive capacity. In the proposed conceptual model, networking is broken down into formal and informal networks, which are defined further in terms of relational embeddedness and structural embeddedness. Absorptive capacity is included in the model to account for firm-specific factors influencing innovativeness. The reason is that absorptive capacity influences firm ability to translate information from the networks into its own innovation activities. Science parks, closely associated with cluster structures, also have an influence on firm innovative performance due to geographic proximity where common knowledge is augmented and reinforced. This paper shows the importance of examing science park effects in greater detail, clearly showing networking, absorptive capacity and cluster mechanisms that drive firm innovative performance.