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The Role of Clusters in Driving International Migration of Innovations: the Case of the British Startups' Boom

Student: Kseniia Osipova

Supervisor: Ekaterina Entina

Faculty: Faculty of World Economy and International Affairs

Educational Programme: International Business (Master)

Year of Graduation: 2018

The young innovative companies from the developing economies, are often challenged with various external constrains that are discouraging the successful generation of innovative activities. Deprived business background including corruption, fraud, poor legislation systems and oppressive taxation regulations is widely said to substantively escalate the price of presenting the novel products while at the same time, can create the ambiguity and uncertainty on investment returns of new products. As a result, these aspects can reduce firm’s motivation and capabilities for innovation activities. On the contrary with the developed economies, innovators from transitional regions are not as close enough to the technological frontier and the many benefits that may be offered by global innovative hubs and clusters, such as Silicon Valley, New York, Israel, London and others. Therefore, it is argued that innovative entrepreneurs may often use the opportunity to migrate their operations to such innovative agglomerations in order to get the most use of the supportive environment, resources and other benefits offered there in order to boost their innovative capabilities.

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