We develop a conceptual model that how firms network and cluster supplements each other in improving the firm'spossibility of technological innovations. We recognize innovation accelerators consciousness, innovation obstacle, resource restriction, organizational inflexibility, and ambiguity. Our conceptual model explains how some factors in the cluster such ascompetitive, social interaction, and cluster energy and network factors such as resource and network energy impact innovati accelerators and obstacles and succeeding the firm's possibility of generating incremental and progress innovations. Result shows thatthe design and management of the firm’s network must be a key strategic consideration of managers to ensure that the network continues to furnish innovation opportunities and resources and it decreases underlying innovation obstacle. Competitive and collaborative outlook of cluster and network have provided a differential roles of clusters and network so innovation.Therefore, high competition intensity and the firm’s knowledge base increases the co-loca challenger's’ motivation to obtain the knowledge from the central firm, and high social interaction intensity may furnish them with the means to doso. Conceptual framework suggests our comprehension with clusters and networks and explicates their limitations at the sametime.
