The Role of Industrial Clusters in Enhancing Innovation: An Analysis of the Biotechnology Experience in Germany

Abstract

This study aims to examine the role of industrial clusters in fostering innovation, with a focus on the biotechnology sector in Germany. Using a descriptive approach for literature review and an analytical approach to assess the impact of clusters on research and development and analyze supportive policies, the findings indicate that these clusters contribute to transforming scientific knowledge into industrial applications, thereby enhancing Germany’s competitiveness in the sector. The study also highlights the importance of innovation support policies through industrial clusters while identifying several challenges that may hinder innovation opportunities. The study recommends strengthening strategic partnerships, developing sustainable financing policies, and improving the knowledge transfer environment to ensure the sustainability of innovation.