THE BOSTON ROUTE 128 MODEL OF HIGH-TECH INDUSTRY DEVELOPMENT

This study applies the concept of industrial clusters to explain the development of technologically sophisticated region of Boston Route 128. It is argued that the success of Boston, Massachusetts, is rooted in innovation, entrepreneurial management and the policy towards technology commercialisation. To consider the argument, the paper proposes the cluster model to capture the specific features of Boston Route 128. It represents a model of the universities working with industries to form a cluster of high-technology-based firms. The venture capital accelerates the process of technology commercialisation, giving rise to a new Boston model of innovation management. Policy makers may use the Boston model as a benchmark to evaluate their performance in supporting high-tech industries.