Innovation and design are the two key elements, improving competitive capacity of clusters in the globalization era. The paper intents to discuss in cluster, how technology level, innovation capacity and design capacity differ by the firm characteristics. Interviews, with heading of 346 jewelry manufacturing firms in Istanbul, includes three main parts; characteristics of firms, innovation activities and design activities of firms. The findings of the case study emphasizes that innovation and design capacity differ according to the characteristics of the firm. Moreover, the paper provides evidence that there is a significant positive relation between innovation activities and design capacity of firms. Finally, as the relationship between the level of technology, innovation and design in the Istanbul jewelry cluster is summarized, the cluster policies that play the basic role improving innovation and design is also discussed in detail.
Key words: Jewelry cluster, technology, innovation, design, Istanbul. JEL Classification: O33. Article Language: EnglishTurkish
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