A study of innovative clusters formation using system dynamic modeling

The aim of the dissertation is to understand the dynamic nature of relationships relating the innovative clusters and their formation process. To find answers to the research question systems dynamic modeling is used. Systems dynamic modeling is a research methodology that is used to find the causal dynamic circular relations, rather than concentrating on linear ones. With the help of the systems dynamic modelling the replication of the real life problems are tried to be reflected in a simulation to understand and tweak the components. The dissertation is conducted by a simulation using Vensim Professional software. The research model that is used in the simulation is generated by the data that is collected through extensive review of the literature and series of interviews that is realized with three clusters in Marmara region of Turkey. The proposed model has been tested with a series of analysis in terms of validity, appropriateness of the structure and boundaries, and sensitivity analysis. The results of the dissertation point out that there are four important dimension that has to be discovered to understand the dynamic nature of innovative cluster formation. These dimensions are innovative entrepreneurs, firms' knowledge bases, number of innovations and number of firms that are involved in clustering activity. All of the dimensions are directly or indirectly affecting each other. The magnitude of the impact vary from instance to instance, but the results indicate that all four dimensions that are represented as stocks have a significant impact on the formation of clusters.