FROM INCUBATORS TO ECOSYSTEMS: EVALUATING THE STARTUP DIGITAL ECONOMY CLUSTER OF HULL CITY

NETWORK (S) = ECOSYSTEM

BUSINESSES + INCUBATORS + USERS = NETWORK (S)

NETWORK (S) = ECOSYSTEM

From the general research question: How micro processes (startup connections and business models) generate macro-order (networks and value)?

Collective organizations, such as the Hull Digital Economy Cluster, are often better positioned than individuals to influence the feedback that “brings about the emergence of new organizational collectives”, such as the entrepreneurship networks within the Hull Digital Economy ecosystem. According to Chilles and Meyer (2001 and 2004) this new organizational collective “play an integral role in the management of self-organizing processes, with implications for collective entrepreneurship in new industry formation” (Chiles et al., 2004:515).

The present research is build from the assumption that the value of complexity theory lies in the possibility of understanding the micro dynamics (micro-processes) of the system by allowing researchers to identify the emergence of structures and organisational forms (startup connections and business models) that support and facilitate the connectivity and growth of the system (network value). Evidence show that C4DI and FEO can be identified as structures and organizational forms that act as connectivity and growth facilitators within Hull’s Digital Economy ecosystem.

To understand the nature and the relations linked to the business culture of the two main hubs and, from there, infer on global representations on the city’s digital economy cluster map, I have combined digital methods of data analysis with interviews and ethnographic observations, both online and on sites. Being myself an active user inside the city's digital economy community, some insights were also part of an autoethnographic process of going to community events and participating in entrepreneurship programs, both in Hull and in other regions within the North Powerhouse cluster, such as Leeds.

Ethnographic observations on the site showed that the C4DI is not operating at its maximum capacity and that an increase in the presence of companies, events, and activities can be expected. Therefore, it is solid to acknowledge the importance of the C4DI at the present time and to predict a consistent growth around the initiative. At the present time, C4DI agglomerate 29% of new ventures and is leading and driving the network with activities and opportunities, and many pieces of evidence point out the C4DI as the most active network within the Hull Digital Economy Cluster. Nevertheless, social media leadership can be considered still weak with opportunities for growing by means of taking an active role in the network in terms of social media presence.

After interrogating relations between network value dynamics and business culture both literature and evidence show a shift in the power relations that place connectivity as a resource for value creation. Therefore it can be suggested that, in the context of the digital culture ecosystem, competitivity may not just be among companies anymore but also among businesses, hubs, clusters, and networks. An example the multidimensional nature of competitivity is found within the North Powerhouse network competing with other UK networks, and at the same time, Hull Digital Economy network competing with the within the overall clusters (networks) identified within the North Powerhouse. In that sense, it is solid to suggest that if the C4DI learns how to be a facilitator for startups to access national and international networks it may increase the network value of the overall Hull Digital cluster, and therefore, their competitivity within the North Powerhouse network.

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