Innovation in complex capital projects: clustering and dispersion in two cases from Argentina and the UK

This paper examines the notion of clusters and clustering from the perspective of complex capital projects, drawing on two detailed case studies of long-term engineering projects. It suggests that conventional notions of clusters are often predicated on a high volume model of production and a stable environment for innovation. The case studies illustrate how the locus of innovation is shifting in response to changes in the nature of demand for major capital goods and the services associated with them. It is suggested this leads to greater dispersion in networks for innovation within complex capital projects. Copyright 2004, Oxford University Press.