Where is the value of cluster associations for SMEs?

Purpose: To explore the role played by policies for co-operation and networking, such as cluster initiatives. We empirically examine not only the direct effect of cluster initiatives on firms ’ innovation performance, but also potential moderation and mediation effects with regards effort in other internal innovation activities. Design/methodology: We analyze the case of the long-running and stable Basque Cluster policy. We built using SABI an extensive sample of 1779 industrial SMEs, 132 of which are members of cluster associations. Findings: The results show that cluster associates do not have more innovation than non-cluster associates. It also rejects the moderation role of other innovation activities (such as technology management, environmental management or R&D activities). However, the results give support to the mediation role of cluster associations in enhancing the value of innovation activities. Research limitations: There are two main limitations to the empirical analysis. Firstly, the impossibility of identifying the year in which cluster associates formally register to the cluster association through secondary sources could entail a degree of endogeneity in the direct and moderatio