Structured Innovation as a Driver of Collective Transformation in Traditional Industrial Clusters

Abstract

Innovation has become a critical driver of competitiveness in traditional manufacturing industries, yet its role remains insufficiently understood in mature industrial clusters. This study examines how structured innovation practices influence firm performance and contribute to broader transformation dynamics in the textile and clothing sector of Portugal´s Vale do Ave region.

Adopting a qualitative multiple case study approach, the research draws on semi-structured interviews with senior managers from five firms at different levels of innovation maturity. Through the Innovation Scoring framework, it analyses how innovation is organised, embedded, and managed across firms.

The findings reveal significant heterogeneity. Firms with institutionalized and strategically aligned innovation demonstrate stronger capabilities in integrating innovation with strategy, fostering supportive organisational cultures, and engaging in external collaboration. These capabilities enhance adaptability and lead to superior performance. In contrast, less mature firms rely on reactive, ad hoc practices and struggle to structure innovation and assess its impact.

The study shows that innovation maturity appears to mediate the relationship between innovation practices and performance, conceptualizing it as an operational expression of dynamic capabilities. It also highlights the importance of multidimensional innovation measurement and offers relevant implications for managers and policymakers aiming to strengthen competitiveness in traditional industries.