Creating Commodities Based on the Design Thinking

Abstract

The factors that comprised a cluster and the state of inter-organizational networks will differ depending on the nature of the product, but incremental innovation that produces refined high-end products appears to be essential for the continued growth. This study investigates product improvement mechanisms in industrial clusters, using Silicon Valley in the U.S., Cremona in northern Italy, and Jingdezhen in China as case studies, shared by both cutting-edge and traditional clusters. As all of the clusters in this research are at the mature stage, the mechanism of open innovation for new highend products is the key to continue developing these clusters. The aim of this research is to find out the conditions for constructing the product improvement mechanisms in industrial clusters. This research is an empirical study based on specific locations which was conducted from 2005 to 2016. A research framework was developed by conducting a wide survey of advanced research, including both primary and secondary materials. In line with this research framework, combined qualitative and quantitative research was carried out. The qualitative research included participant observations that targeted a small number of cases. As a result, open innovation was found to be essential for product improvement in industrial clusters, and the fact was that business producers contribute profoundly to the construction of that mechanism. By maintaining a balance between an arrangement that ensures competition and cooperation that aims to be of benefit to the whole cluster through this kind of leadership, incremental innovation mechanisms will operate toward product improvement, leading to the sustainable development of an industrial cluster. This comparative study contributed theoretically to the accumulation of empirical studies for the creation of innovation in industrial clusters, and practically to the improvement of the product management by showing common factors for product improvement mechanisms in industrial clusters.