Key Behavior of a Cluster of Innovation (COI)
Alignment of Interests, Incentives and Goals:
Enterprises and individuals within a Cluster of Innovation benefit from a web of shared values, business practice and culture.
Win-Win Challenge as Competition:
While fierce competition certainly exists within a cluster
community, the grander competition is often with incumbent solutions and their providers. Although the innovators compete with each other, they participate together in a win-win challenge to displace existing methods and introduce new solutions. Venture capitalists share deal flow and co-invest as a regular practice in spite of fierce competition among firms. Shared ownership arrangements, such as stock options, break down traditional barriers between owners and employees and align interests of founders, managers, employees, advisors, and investors with the success of the venture.