Microsoft Word 2007 ichrie conference Proceedings Final-Final 06-06-07. doc

CONCLUSIONS AND IMPLICATIONS FOR FUTURE RESEARCH 
Although knowledge has been identified as an indispensable resource for developing new products 
and achieving competitive advantage, little is known as to the specific processes that knowledge management can 
contribute to NPD at destination cluster processes. This paper aimed to elaborate the links between NPD and 
knowledge management and then propose a framework for assessing tourism clusters knowledge-based NPD 
processes. The literature review demonstrated that effective NPD processes require not only the identification and 
collection, but also the appropriate internalization, use and exploitation of knowledge. The concept of absorptive 
capacity has been proposed in the literature for indicating firms’ and clusters’ ability to assimilate and create new 
knowledge. In this vein, in order to assess clusters’ knowledge-based NPD, the study proposed the use of a two 
dimensional model. One dimension assessing the clusters’ potential absorptive capacity reflecting clusters’ ability to 
identify and assimilate knowledge. The literature showed that the cluster’s characteristics affecting potential 
capacity are its centrality and relational links, since they directly influence the amount and quality of knowledge that 

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