Skip to main content

LUP Student Papers

LUND UNIVERSITY LIBRARIES

Understanding Innovation Clusters, An Exploratory Study of Israel and Southern

Ivarsson, Johannes (2013) MIO920
Production Management
Abstract
The main purpose of this explorative master thesis is to describe, explain and understand
the main success factors that lie behind the regional innovation system in Silicon Wadi in
Israel. This is done in order to suggest some tentative ideas on how to further develop
the emerging ICT cluster in Malmö/Lund.
Four sub purposes have been applied in order to achieve the main purpose:
To understand why Silicon Wadi in Israel has become such a successful and
sustainable ICT cluster
To benchmark the cluster in Silicon Wadi and the one in Malmö Lund: Which are
(or seems to be) the key similarities and differences between Silicon Wadi in Israel
and the Malmö/Lund region?
To use the benchmarking to propose ideas on how to address some... (More)
The main purpose of this explorative master thesis is to describe, explain and understand
the main success factors that lie behind the regional innovation system in Silicon Wadi in
Israel. This is done in order to suggest some tentative ideas on how to further develop
the emerging ICT cluster in Malmö/Lund.
Four sub purposes have been applied in order to achieve the main purpose:
To understand why Silicon Wadi in Israel has become such a successful and
sustainable ICT cluster
To benchmark the cluster in Silicon Wadi and the one in Malmö Lund: Which are
(or seems to be) the key similarities and differences between Silicon Wadi in Israel
and the Malmö/Lund region?
To use the benchmarking to propose ideas on how to address some of the
challenges that faces Malmo/Lund as a regional innovation system
To develop a theoretical framework for exploring and comparing regional
innovation systems.

Method
The study has been conducted mainly through two case studies where the ICT clusters in
Silicon Wadi and Malmö/Lund have been studied. The method used to carry out these
studies has primarily been literature studies, collecting mainly qualitative data.
Theoretical Framework
The empirical data has been analyzed with a model developed in this thesis called The
Innovation Ecosystem Model. This model is a composition of theories within the theoretical
sphere around clusters and innovation systems. The model is an attempt to describe and
understand a regional innovation system, or a cluster, in three different dimensions
namely Context, Actors and Activities. The context has been analyzed using Michael E.
Porter’s diamond model, the actors with the triple helix model and the activities with
Charles Edquist’s activity based approach to innovation systems.
Conclusions
There are many success factors behind the Israeli ICT cluster in Silicon Wadi, but some
of the main factors determining the success of the cluster have been focused government
initiatives, well developed capital markets, well developed commercialization
infrastructure, a focus on high quality R&D and education, the characteristics the military
service imposes on the population, a culture well suited for entrepreneurial endeavor and
a high degree of international collaboration.
In order to create a bright future of the cluster in Malmö/Lund actions needs to be taken
on three different levels, societal challenges such as integration problems and high
unemployment rates must be addressed, systemic challenges in the innovation system has
to be addressed and finally a creative environment has to be built in accordance with
Richard Florida’s theories on creative capital. The Israeli cluster can be a role model in
addressing mainly the systemic challenges in Malmö/Lund where programs such as
Yozma, a venture capital policy program, can be a source of inspiration. (Less)
Please use this url to cite or link to this publication:
author
Ivarsson, Johannes
supervisor
organization
course
MIO920
year
type
M1 - University Diploma
subject
keywords
Cluster, Innovation System, Innovation, Entrepreneur, Silicon Wadi, Information and Communication Technology – ICT, Innovation Policy, Venture Capital
other publication id
13/5479
language
English
id
4195336
date added to LUP
2013-12-13 13:40:25
date last changed
2013-12-13 13:40:25
@misc{4195336,
  abstract     = {The main purpose of this explorative master thesis is to describe, explain and understand
the main success factors that lie behind the regional innovation system in Silicon Wadi in
Israel. This is done in order to suggest some tentative ideas on how to further develop
the emerging ICT cluster in Malmö/Lund.
Four sub purposes have been applied in order to achieve the main purpose:
 To understand why Silicon Wadi in Israel has become such a successful and
sustainable ICT cluster
 To benchmark the cluster in Silicon Wadi and the one in Malmö Lund: Which are
(or seems to be) the key similarities and differences between Silicon Wadi in Israel
and the Malmö/Lund region?
 To use the benchmarking to propose ideas on how to address some of the
challenges that faces Malmo/Lund as a regional innovation system
 To develop a theoretical framework for exploring and comparing regional
innovation systems.

Method
The study has been conducted mainly through two case studies where the ICT clusters in
Silicon Wadi and Malmö/Lund have been studied. The method used to carry out these
studies has primarily been literature studies, collecting mainly qualitative data.
Theoretical Framework
The empirical data has been analyzed with a model developed in this thesis called The
Innovation Ecosystem Model. This model is a composition of theories within the theoretical
sphere around clusters and innovation systems. The model is an attempt to describe and
understand a regional innovation system, or a cluster, in three different dimensions
namely Context, Actors and Activities. The context has been analyzed using Michael E.
Porter’s diamond model, the actors with the triple helix model and the activities with
Charles Edquist’s activity based approach to innovation systems.
Conclusions
There are many success factors behind the Israeli ICT cluster in Silicon Wadi, but some
of the main factors determining the success of the cluster have been focused government
initiatives, well developed capital markets, well developed commercialization
infrastructure, a focus on high quality R&D and education, the characteristics the military
service imposes on the population, a culture well suited for entrepreneurial endeavor and
a high degree of international collaboration.
In order to create a bright future of the cluster in Malmö/Lund actions needs to be taken
on three different levels, societal challenges such as integration problems and high
unemployment rates must be addressed, systemic challenges in the innovation system has
to be addressed and finally a creative environment has to be built in accordance with
Richard Florida’s theories on creative capital. The Israeli cluster can be a role model in
addressing mainly the systemic challenges in Malmö/Lund where programs such as
Yozma, a venture capital policy program, can be a source of inspiration.},
  author       = {Ivarsson, Johannes},
  keyword      = {Cluster,Innovation System,Innovation,Entrepreneur,Silicon Wadi,Information and Communication Technology – ICT,Innovation Policy,Venture Capital},
  language     = {eng},
  note         = {Student Paper},
  title        = {Understanding Innovation Clusters, An Exploratory Study of Israel and Southern},
  year         = {2013},
}