Business clusters for improving competitiveness and innovation of enterprises - experience of Latvia

Abstract

Purpose - the purpose of this paper is to examine the experience of the Latvian IT cluster and the Forest industries cluster to evaluate their capacity for innovation and competitiveness.

Design/methodology/approach - theoretical and empirical research methods, including an extensive literature review, the IT Cluster company data analysis, the survey of the Latvian Information technology (IT) cluster analysis, and the data analysis of the Latvian Forest industries cluster.

Findings - the analysis of the both Latvian clusters shows that they have established effective co-operation platforms for improving competitiveness and innovation capacity. Companies can achieve practical use and benefits employing the concept of clusters. Thus, this is important to promote the development of clusters in different industries using state support, as well as private initiative.

Originality/value – This paper argues that cluster environment can positively influence development of companies facilitating their competitiveness and innovation capacity. The analysis of both Latvian clusters reflect the business environment in Latvia, as well as cooperation among enterprises. Findings of the research could be useful for already existing clusters, newly developing clusters, policy makers, as well as researchers.

Article Type: Research paper