Innovating in the textile industry: An uncoordinated dance between firms and their territory?

Abstract

Considering the process of innovation development, this paper aimed to examine the effect of different dimensions of proximity and the level of coordination that exists in a textile cluster. This study employed a qualitative method, based on in-depth interviews that were conducted with two leading firms in a textile cluster in Valencia, Spain, which is subject to intense competition from producers in Asia. Firms were selected according to the criteria of innovation development and opportunity. This is a pilot study that precedes a more ambitious one. The results suggested that firms’ innovations are developed in an isolated, discontinuous, marginal, and uncoordinated way, and clustering has a marginal effect. Furthermore, despite high geographical and cognitive proximity, low social proximity is maintained by the low level of trust between the firms. These findings may be of significant practical value for practitioners and institutions. Firms can gain a better understanding of the importance of being located in a cluster, as this is a key factor for their survival under intense competition. However, geographical proximity is not sufficient, and firms need to cooperate with each other and share their ideas and experiences. In addition, institutions should interact more with companies, speak their language, meet their needs, and devise strong cluster initiatives. This study provides a more comprehensive understanding of how institutions and firms interact within a cluster in the process of innovation development and elaborate upon different dimensions of proximity among firms.

Keywords

• cluster
• innovation
• proximity
• spain
• territory
• textile-clothing