Bridging capabilities, resources, and networks: Understanding collaborative innovation in manufacturing clusters

Grounded in the dynamic capability theory, this research examines how internal capabilities, resource endowments, and contextual conditions jointly influence collaborative innovation within manufacturing clusters. A multistage survey of 332 manufacturing enterprises in Zhejiang’s advanced manufacturing system provides empirical evidence for an integrated framework linking innovation capability, financial and human resources, and innovation network embeddedness. Results indicate that both innovation capability and internal resources enhance collaborative innovation performance directly and indirectly through network embeddedness. The moderating role of innovation atmosphere further reveals that a supportive and open climate strengthens the positive influence of embedded networks on innovation outcomes. The findings elucidate the dynamic processes through which manufacturing enterprises transform internal strengths into collective innovation advantages. Theoretical and practical implications for capability development, cluster governance, and regional innovation policy are subsequently discussed.