The Impact of Clustering on the Innovativeness Of Furniture Industry

Abstract

The furniture industry in Poland is a rapidly growing area of the economy. The level of innovation strongly influences furniture enterprises competitive position on the market. To support innovation, small and medium furniture industry businesses are affiliate in cluster initiatives. It supports the area of R&D, joint promotional campaigns and financing of new ventures. The paper presents selected furniture industry cluster initiatives that implement policies to support innovation activities of enterprises affiliated to them. In Poland, more and more furniture industry businesses brings together in cluster initiatives that aim to improve their market competitiveness and increase the level of innovation. Taken studies allow to analyse the direction of innovative activities undertaken by companies of the furniture industry with particular emphasis on the ones associated in clusters. Thus the aim of the article is to investigate the interest of Polish furniture enterprises (especially SMEs), in participation in clusters. Moreover the benefits of that choice and its impact on Polish furniture manufacturers innovativeness are evaluated.Keywords innovation, furniture industry, cluster initiative, areas of innovation furniture industry.

Deconstructing innovation in the wood furniture industry in Kenya

“…The wood furniture sector in developing countries comprises mostly of low-tech and small and medium enterprises (SMEs), requiring assistance in enhancing innovativeness. Indeed, their innovative potential is very low in comparison to high-tech and large firms (Grzegorzewska et al 2014). Small and medium enterprises may decide to work in partnership with other firms, share their competencies, reduce various costs, consolidate limited resources, and in this way increase their productivity, innovativeness, and profitability (Grzegorzewska et al 2014).…”

“…Locational factors that may play a role in innovativeness include human capital, labor skills, population density, manufacturing wages, taxes, and unemployment rate (Audretsch and Fritsch 1999). Grzegorzewska et al (2014) note that cluster innovation can be a major factor in attaining innovativeness. Cluster innovation is described as a collaborative innovation process of specialized enterprises in the same or related industries that cooperate with suppliers, customers, marketing network, government, and other actors in the cluster.…”

“…This is also seen as the reason that innovation often occurs locally whereas its benefits spread more widely through productivity gains. Therefore, some researchers suggest that firms in the cluster have potential to be more innovative than others because they benefit from agglomeration economies such as nearby suppliers attaining efficient scale, direct observation of competitors, and ability to exploit collective knowledge (Grzegorzewska et al 2014). Moreover, firms in clusters also benefit from network-based effects, especially enhanced social interaction and have more www.forest-journal.com opportunities to get in touch with customers and be aware of new customers' needs more clearly and more quickly.…”