Study of Knowledge Diffusion FSAI Model for High-tech SMES Clusters
Su-ping Zhou
School of Economics and Administration，Tianjin Open University，Tianjin, China
(zhousptj@126.com)
Abstract - Knowledge diffusion is a spiral cycle
experience, which including knowledge formation, knowledge
spillover, knowledge absorption and new knowledge
formation. The paper constructs a knowledge diffusion FSAI
model for high-tech SMES clusters, focuses on influencing
factors to three stages of knowledge spillover, knowledge
absorption and knowledge innovation.
Keywords - High-tech SEMS clusters; Knowledge
diffusion; FSAI model component
tech SME cluster is the result of various factors in the cluster
work together.
New knowledge
formation
Knowledge
formation
Knowledge
spillover
Knowledge
innovation
I.
KNOWLEDGE
The “knowledge” entry in 《Encyclopedia of China •
educationist》is stated as “The knowledge, which reflects to
its content, is reflect of property and links of objective
things, the subjective image in the human brain of objective.
To its activity form, it sometimes expressed as things’
emotional perception or appearance by subject, which is
perceptual knowledge; sometimes expressed as things’
concept or rules, which is rational knowledge. ”[8]
The characteristics of knowledge including tacit
characteristic, action-oriented characteristic, dynamic
characteristics, subjective characteristics, copy/transfer
characteristics, extend growth characteristics, capital
characteristics, double characteristic, skilled characteristic,
situational characteristics, mental-accepted characteristic,
results-oriented characteristic, power characteristics, life
characteristics, etc.
II.
CONSTRUCTION OF KNOWLEDGE DIFFUSION FSAI
MODEL FOR HIGH-TECH SMES CLUSTERS
Academic circle has much different definition on
knowledge diffusion; this paper considers that knowledge
diffusion is a continuous cycle and spiral process, including
knowledge formation, knowledge spillovers, knowledge
absorption, and knowledge recycling until the new
knowledge formation.
Knowledge diffusion in high-tech SME clusters is a
cycle process with spiraling trend, including knowledge
formation-knowledge spillover-knowledge absorptionknowledge innovation-new knowledge formation, showed as
Figure 1.
A. Knowledge formation
Knowledge formation refers to the subjective image’s
formation of feeling, concept or regularity of properties and
contact of objective things. Knowledge may be formed by
means of knowledge production and practice, social practice
and scientific experiments. Knowledge formation in high-
Knowledge
absorption
Figure 1. knowledge diffusion FSAI model for high-tech SMES clusters
B. Knowledge spillover
Knowledge spillover is knowledge or information flow
from one department to another within the organization, or
the state and process flow from the organization internal to
the organization external. According to the process,
knowledge spillover can be divided into horizontal and
vertical. The horizontal refers to knowledge spill among
similar enterprises or research institutions; the vertical
refers to knowledge spill among different types of
enterprises and research institutions. The horizontal
spillover will generate scale economic, vertical spillover
will generate scope economic.[2]
Knowledge spillover effect is the manifestation of
knowledge spill, which is represented as the knowledge
innovation caused by knowledge receiver or demander
digest and abort external spilled knowledge.
Knowledge spillover effect is mainly in three aspects:
knowledge spillover effect by itself; new market spillover
effect created by knowledge; new benefits spillover effect
created by knowledge. This paper mainly research from
knowledge spillover effect by itself. [1]
Knowledge spillover effect mainly relates to the
impact factors such as space, science and technology talents,
knowledge staffs’ flow, market structure and social network.
C. Knowledge absorption
Knowledge absorptive capacity refers to the capacity
of understanding, absorptive, digestion and application new
knowledge.
Knowledge absorption can be studied from two levels:
individual level and enterprise level.[3]This paper mainly
studied from the enterprise level.
Enterprise knowledge absorptive capacity includes
four categories: knowledge acquisition ability, knowledge
acceptation capacity, knowledge transfer capacity and
knowledge development and utilization capacity. The
knowledge acquisition capacity refers to judge and get
knowledge which plays critical role to enterprise; the
knowledge acceptation capacity emphasizes effectively
interpret and understand external knowledge, knowledge
that couldn’t be understood is difficult to be recycled and
developed; knowledge transfer capacity is effective
integrates internal and external knowledge; knowledge
development and utilization capacity refers to develop new
knowledge by common use internal and external knowledge.
The four capacities can be classified into two categories:
knowledge potential absorptive capacity (including
knowledge acquisition and absorption) and knowledge
practical absorptive capacity (including knowledge transfer
and exploitation). Knowledge potential absorptive capacity
is the premise of enterprise using external knowledge.
Knowledge practical absorptive capacity is the key of
enterprises’ continuous innovation and maintaining
competitive advantage through making use of external
knowledge.[6]
D. Knowledge innovation
Knowledge innovation is a systematic process that
constantly applies and innovate knowledge to new areas
under closely related to economic development and
knowledge accumulation through knowledge management.
The purpose of knowledge innovation is to pursuit new
discoveries, explore new laws, create new theories, create
new methods and accumulate new knowledge. Knowledge
innovation is the foundation of technological innovation,
the sources of new technologies and new invention, the
revolutionary forces to promote technological progress and
economic growth. Knowledge innovation includes concept
innovation, technological innovation, system innovation,
management innovation, cultural innovation and so on.
Knowledge innovation within the cluster is mainly applied
research; the purpose is to develop new products for market
or cost saving by using new technologies.
E. New knowledge formation
New knowledge formation is giving existing
knowledge new understanding, feeling, concept or
regularity based on the existing knowledge, in the process
of knowledge spillovers, knowledge absorption, especially
in knowledge-recycling. New knowledge formation is the
starting point for the next FSAR.
III.
DIFFERENT STAGES OF THE FSAI MODEL
We mainly study the three stages of knowledge
diffusion in high-tech SME cluster: knowledge spillover,
knowledge innovation and knowledge absorption. The main
influence factors in each stage are as follows:
A. knowledge spillover stage
The main influence factors of Knowledge spillover stage
are space distance, the aggregation and mobile of knowledge
staff, the market structure and social network.
I) space Distance
Explicit knowledge diffusion mainly through the mass
media, Tacit knowledge diffusion must through face-to-face
communication, therefore, the dissemination cost of explicit
knowledge relate to distance, but the dissemination cost of
recessive knowledge is a distance attenuation function.
Therefore, knowledge spillover is influenced by certain
space limits.
M.C. J.Caniels (2000) [11] put forward space knowledge
spillover hives model, through introducing the “learning in
work” concept in the theory of the new economic growth.
M.C. J.Caniels put the “learning in work” effect into
knowledge spillover research scope, constitute a knowledge
spillover hives model based on hexagon regional spatial,
such as the equation 1.
s  r
i

i
1  i Gij u
e
2

ij
(1)
Si is knowledge spillovers effect of i area accepting j
area. δi is the learning capacity of i area; Gij is knowledge
stock gap between area i and area j, γij is geographic
distance between area i and area j; μ is technological catchup coefficient, which refers to knowledge stock gap be
realized technology catch-up between two area. When area
number add to k, for each area, weigh knowledge spillovers
acceptable by the area need to measure by accept
knowledge spillovers aggregation from k-1 area，such as
the equation 2.
k 1
 1  i G ij  u
(2)

s
i

j 1
i
r e 

2
ij
The Chinese scholars ZHU Meiguang[12] were
established a correction model based on the regional
knowledge ability, this model is replacement and improve
for knowledge stock, technical distance and knowledge
absorptive capacity of M.C. J.Caniels’ model.

s
ij


i

    1
 Rij  e 




 ij G ij u i 
2
(3)


S
ij
is knowledge spillover effect value of region i accept
region j; Δi is knowledge absorptive capacity of region i, Gij

is knowledge capacity gap between two region;
R
ij
is the
space distance between region i and region j (contain region
near degrees impact); μi is technological catch-up
coefficient, which refers to knowledge stock gap be realized
technology catch-up between two area. Hypothesis there are
k research regions, such as the equation 4.
k 1


(4)
W   1  i G ij u 

S  E i E j F i F j   
i
j 1
i
2
ij
R e
ij
The Study whatever by M.C. J.Caniels or Chinese
scholar ZHU Meiguang have demonstrated that knowledge
spillover effect among enterprises is inversely proportional
to the distance. While the study of Chinese scholar ZHU
Meiguang shows that information convenience and traffic
convenience are relate to space distance, namely the smaller
space distance is, the stronger information convenience and
traffic convenience will be. So in fact, the influence that
space distance on knowledge spillover effect is greater than
inverse correlation.
Geography adjacent causes the direct interaction
effect among adjacent consumers, suppliers, competitors
and education and research organization. Direct interaction
helps to obtain knowledge, especially the recessive
knowledge. While a prerequisite of enterprises cluster is
space gather, namely exists on the same geographical area,
space distance were comparatively small. Therefore, it will
be helpful for knowledge spillover.
II) Knowledge staff aggregation and flow
The concept “knowledge staff” was first proposed by
American scholar Peter F．Drucker, specific refers to “The
staff that masters and applies the symbols and concepts,
works using knowledge and information ". Now knowledge
staff generally refers to the staff who engage in activities
that production, creating, extension and application
knowledge, brings knowledge capital appreciation for the
unit (or organization), and takes it as a profession
Knowledge staff’s aggregation.
NIU Chonghuai (2010)[4] studied the effect that
knowledge staff’s aggregation to knowledge spillover effect.
knowledge staff aggregation phenomena refers to in a
certain period of time, with the flow of the knowledge staff,
the clustering phenomenon formatted by the same type or
related personnel according to certain rules, in a particular
area (physical space) or to a specific industry (virtual space).
Knowledge staff aggregation phenomenon will produce
economic effect. Knowledgeable staffs that have certain
relation, aggregated in a certain area, play more than
independent function of aggregation effect under the action
of harmony internal and external environment.
Knowledge spillover’s economical effect is positive
effect, namely knowledge spillovers subject will spread out
all or part of knowledge properly to share with others;
transmission medium comprehensive classification and
screen knowledge, what make the knowledge spreader to
knowledge accept subject more effective. Knowledge
effectively knowledge accepted subject able to correctly
identify, receive and use the information to create
knowledge accumulation, and innovate knowledge on the
basis.
Science and technology talents aggregation effect can
be divided into organization effect, environmental effect and
aggregative members effect of themselves; and can be
specific divided into: information sharing effect, knowledge
spillover effect, innovation effect, collective learning effect,
incentive effect, time effect, regional effects and scale effect.
Knowledge spillover effect is concerned to knowledge
spillovers subject, knowledge spillover strength and
knowledge spillovers content. Knowledge spillovers subject
in high-tech SMES clusters are knowledge staff, each
knowledge staff plays the dual role of knowledge spillover
subject and knowledge accept subject. Enterprise cluster not
only can shorten the communication distance, reduce
communication cost; but also can reduce communication
link, reduce knowledge lost, twisted and distortion
phenomenon in communication, quicken the propagation
speed of Tacit knowledge, guarantee the authenticity of
implicit knowledge transfer. For the Tacit knowledge,
characteristics of high-tech SMES knowledge staff
concentration, convenient communication, random interview
and the secrets of the tacit knowledge, decide the tacit
knowledge overflow content have the characteristics of
anytime, concentration and dynamic under knowledge staff
aggregated.
a) Knowledge staff’s flow
NAN Xuguang (2009)[10] considered that regional
innovation level and personnel flow is the positive
correlation through a study on the computer industry
talent’s flow in Silicon Valley. He established a dynamic
knowledge connection model for regional talent flow,
assuming that there are only two types of company in hightech technology industry: suppliers and manufacturers, the
number of employees from manufacturers flow to suppliers.
1   
S
(5)

E
  x    k 
S is suppliers number in region; E is producers number
in region; r is innovation level, X is expected profit level of
suppliers conversion;  is manufacturers’ benefit due to
innovation in each phase; 1  is suppliers’ benefit;


  k  is expenditures to recruit experienced employees.
The equation 5 can state that the greater the number of
suppliers and manufacturers business relations has, the
greater turnover ratio between the supplies and
manufacturers in cluster region.
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III) Market structure
To emerging industry, enterprise scale is not large,
knowledge spillover is very important to these enterprises.
These enterprises usually have less scale compared with
mature companies. On the other hand, they have capacity of
large-scale R&D activities, and market monopoly helps
them get high innovation economic profit. Monopoly also
hindered the knowledge spillovers, so only through the
externality internalization (knowledge sharing) can realize
synchronous development of innovation and economic
growth.
The industry which high-tech SMES clusters in
usually is the immature new industry. It is relatively limited
that R&D personnel, money and capacity, therefore, the
needs of knowledge sharing and knowledge spillovers are
more intense.
IV) Social network
Some scholars emphasized the importance of the
social network in geographical area. Stable and reliable
reciprocity social network’s forming conducive to scientific
and technical staff’s interaction, promoted the knowledge’s
overflow and spread. A study on experience of Silicon
Valley and Boston by Nineveh shows that stable social
network among enterprises increased enterprise innovation
ability, reduced the transaction costs.
WU Shouren (2004) [5] considered usually it has more
advantageous that non-compete enterprise gathered in the
same technical field through the study of the technology
incubation enterprise knowledge spillover effect. If
competition cost less increase with scale growth,
enterprise's best gathered scale will be increased while the
increase extent of competitive enterprises assembling is
larger than the knowledge spillover increase extent caused
by knowledge construction change. Conversely, if the best
gathered scale enterprise be reduced, and the enterprise
cluster effect has little change, but competitive cost increase
larger, then enterprises gather hasn’t efficiency. The
conclusion is that knowledge learning and communication
among enterprises ' produced knowledge spillover effect.
Only enterprises gather can share its non-coding knowledge
and produce knowledge spillover effect. If the technical
knowledge proportion of competitive enterprise is larger
than non-competitive enterprise in the same technology
field, knowledge spillovers effect will be larger, but
because of their competition, gathered cost will be bigger,
overflow efficiency may be lower, what depending on the
knowledge structure and the knowledge output
characteristics. Therefore, it will be more effective that noncompete enterprise gathered in the same technology field.
B. Knowledge absorption stage
The main Influence factors of knowledge spillovers
effect in knowledge absorption stage depends on some of
knowledge absorption enterprise's own characteristics,
including: enterprise R&D activities, enterprise learning
culture, enterprise sensitivity for new knowledge, enterprise
knowledge accept ability and cluster learning mechanisms.
I) The enterprise R&D activities
Knowledge absorption enterprise can be divided into
two types[3]: one is “research center” type, enterprises
gather in a particular area are engaged in the research and
development activities, the same enterprise can not only be
the knowledge spillover, but also may be the recipient,
knowledge flow is a of two-way, such as the silicon valley.
Another is the “technology source” type, namely flow of
technical knowledge is one-sided, from leaders to imitator.
Obviously, enterprises in high-tech SMES clusters more
accord with characteristic of “research center” type, can
effectively promote knowledge absorptive capacity. It is
because as follows: firstly, the organization absorptive
capacity is the sum of individual absorption ability,
innovation activities absorb or train large quantities of high
quality professional talents for enterprises, these highquality talents absorbing and digesting external professional
knowledge helps to promote enterprise's whole absorptive
capacity. Secondly, the innovative activities and how much
the R&D input will influence on learning motivation of
members, also influence on the knowledge spillovers
learning easy degree and quantity of obtainable knowledge;
Thirdly, R&D activities will improve technical opportunity
condition, more technical opportunity means more external
information, which will enhance motivation of enterprises
build absorptive capacity, and a more challenging learning
environment also can enhance motivation of the R&D
activities to build absorptive capacity, so there is mutual
promoting role between R&D activities and absorptive
capacity.
II) Enterprise learning culture
Enterprise learning culture determines staff’s learning
motivation, enterprise with good learning culture has strong
knowledge communication and coding ability, namely
performance skills of knowledge source such as clearly
express, good language expression, and easy to be
understand.[7]Communication skills make enterprises
interaction and relationship be developed, can capture a
variety of knowledge spillovers opportunity. Learning
culture makes staff’s learning motivation relatively intense,
the behavior overflow knowledge learning and sharing will
be encouraged, may also play a role to strengthen willing of
the individual learning overflow knowledge, and devote
more energy to improve knowledge spillover effect.
III) New knowledge sensitivity of enterprise
There is correlation between new knowledge
sensitivity of enterprise and knowledge spillover effect.
Knowledge receiver sensitivity directly determines the
quality and flow of direction overflow knowledge. Whether
knowledge receiver realize the leading knowledge and
whether there is definite strategic intention to absorb
knowledge from knowledge source affected active degree
of absorb knowledge by knowledge receptor. Once
knowledge receptor be aware of external knowledge and
think it has a strong market potential, the stronger
consciousness of knowledge absorption by knowledge
receptor is, the easier the knowledge spillover will be.
IV) Knowledge accept capacity of enterprise
Through empirical research, Agra Walter confirmed
that there is correlation between knowledge spillovers effect
and, absorption and application capacity of new knowledge
by economic subject cognition of accept overflow. The
absorption and application capacity of new knowledge
depends on the necessary preparation knowledge of accept
subject. External knowledge absorption and application
capacity of an enterprise is closely related to what the
enterprise has knowledge endowment and knowledge
connotation by itself, only the enterprise have the
corresponding precedent knowledge can digest and
applicator new knowledge. Accept subject accepts ability
also and spillover between subjects related technical
similarity. By defining technology integrated index, Jeff
studied the influence on adjacent enterprise technology
distance under the condition of knowledge spillover,
technology distance significantly affect enterprise
innovative activities. Excessive technical distance makes
knowledge absorption enterprises haven't platform to digest
absorb new knowledge and technology, While technology
distance is too small will make knowledge spillover space is
too small .Therefore, keep a proper technology distance will
produce stronger knowledge spillover effect.
V) Cluster learning mechanism
Generally speaking, organization learning can be
divided into internal learning and external learning. Internal
learning refers to knowledge diffusion and the knowledge
innovation activities within the organization, and external
learning refers to the technology imitation, transfer and
introducing. If cluster is an organization, the cluster
knowledge absorption in addition to including absorb new
knowledge outside cluster, still including new knowledge
diffusion, use and re-innovation within a cluster, so it is a
kind of integration of external learning and internal
learning. Therefore, more technical exchanges, academic
BBS activities should be undertake in cluster. We should
create opportunities for knowledge circulation and share,
promote enterprise cooperation R&D project activities, and
establish cluster learning mechanisms.
C. Knowledge innovation phase
I) Knowledge innovation subject
Knowledge innovation subject is the enterprise within
a cluster, but for high-tech SMES clusters, on one hand,
owing to the resource constraints, SMES enterprises often
are ambition in knowledge innovation, on the other hand,
high-tech industry requirements that knowledge innovation
is frontier innovation, it is difficult to innovate. High-tech
SMES clusters internal knowledge innovation must by
means of scientific research institutes, and according to the
high-tech enterprises cluster has formed view, cluster
surrounding are concentrated several research institutes,
even some cluster were already formed with research
institutes as center in geographical position. To cluster, it is
important to university-industry cooperation, put the
knowledge innovation into application. The mutual trust
culture in cluster based on frequent communicate and
exchange transactions makes organization whose business
exists on similar or complementary are easily formed
cooperation, cooperative innovation of organization formed
by different innovation subject will cooperative innovate for
a certain market opportunity.[9]
II) Infrastructure
Infrastructure provides good external conditions for
knowledge innovation behavior within cluster. The
infrastructure which be used in knowledge innovation
process, such as library, knowledge base within the
organization and organizational, be established based on the
Internet and Intranet technology, the experimental
conditions and equipment to be used in the knowledge
innovation process.
For any organization is concerned, it is impossible to
have all knowledge and its related infrastructure in its
business scope. due to its internal members business contact
and complementarily, cluster could obtain its necessary
knowledge and facilities conveniently and economically by
means of free or pay, in knowledge innovation behavior, at
the same time, the subjects who own knowledge and
facilities knowledge production institutes (university and
research institutes) also improved its utilization ratio of
facilities and knowledge, the fixed cost be shared.
ACKNOWLEDGMENT
This paper obtain China postdoctoral Science
Foundation on the 49th grant program, as the project “A
Study on Organization Informal Learning in Virtual
Learning Community ” (project code: 20110490309)
periodicity research achievements.
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