Exploring the influence of absorptive capacity on innovation in Bengaluru high-tech manufacturing cluster

Abstract

There has been an increasing emphasis to understand the dynamism of firms in high-tech clusters given the economic prospect they offer to themselves and regions housing these clusters. This has placed a pressing need for researchers and practitioners across the globe to quantify absorptive capacity of a firm which is a measure of dynamic capability of a firm. Bengaluru being one of the “global hubs for technological innovations” in Asia, houses the densely interconnected network of high-tech manufacturing firms forming a high-tech manufacturing cluster. It is in the context of Bengaluru high-tech manufacturing cluster that, this paper attempts to quantify absorptive capacity of a firm and subsequently ascertains its influence on innovation.