Extra-cluster knowledge search and innovation performance: An empirical study based on industrial cluster firms from Yangtze River Delta in China

In an open innovative system, cluster firms in technologically lagging countries need especially establish linkages with extra-cluster knowledge sources in order to help them achieve and sustain innovation and avoid `entropic death´ of the cluster. This paper examines the association between the extra-cluster knowledge search of cluster firms and innovative performance. Based on a sample of 156 industrial cluster firms from Yangtze River Delta in China, the empirical results show that breadth of extra-cluster knowledge search is curvilinearly (taking an inverted U-shape) related to innovative performance. Search depth is linearly related to performance. Moreover, absorptive capacities positively moderate the relationship between knowledge search breadth and innovative performance.