*Corresponding author, e-mail: armatli@gazi.edu.tr GU J Sci 30(2): 17-33 (2017) Gazi University Journal of Science http://dergipark.gov.tr/gujs Rethinking Space in Production Networks: Network Centrality and R&D Activities in Ankara Defense and Aviation Cluster Bilge ARMATLI KÖROĞLU 1,* , Tanyel ÖZELÇİ ECERAL 1 1 Gazi University, Faculty of Architecture, Department of City and Regional Planning, Ankara, Turkey. Article Info Abstract The main motivation behind the cluster approach in 1990s is to improve the innovation capacity by means of production networks. This paper presents findings on production networks and innovation activities in Ankara defense and aviation cluster. The network maps show that, inclusion/exclusion to the network and centrality in the network has taken the place of spatial proximity and geographical location. Moreover, the results of the analysis could not confirm the relation between subcontracting networks and R&D activities, but have confirmed the relation between service networks and R&D activities. These outcomes may guide the sector and cluster development strategies. Received: 12/11/2016 Revised: 13/03/2017 Accepted: 28/04/2017 Keywords Defense and aviation industry Cluster Production networks R&D activities Ankara 1. INTRODUCTION Since 1990s there is a vast literature on clusters, which is seen as an important policy tool in local development. The main motivation in clustering is argued to be improving the innovation capacity through connecting to networks in a highly competitive environment. Especially, following 1990s, many cluster studies focused on network and innovation capacity concepts. Within this context, defense and aviation clusters are based on large leading firms with connection to global production networks that produces high value products. The production networks established around large leading firms and their suppliers and subcontractors give the basic structure of the defense and aviation cluster [1]. For suppliers and subcontractors, being close to and in relationship with the main contractor offers amenities such as attaining high technology, reaching global markets indirectly and increasing competitiveness. The desire to be close to end user and recipient government institutions is seen to be effective in the location of the defense and aviation industry. The presence of organized industrial zones, science parks, universities, research institutions, and other related public sector institutions can be counted among the main relevant reason for the defense and aviation industry to locate in Ankara. The reason for choosing Ankara as the field study area is its sector-leading position. In this paper, Ankara is called as ‘Ankara defense and aviation cluster’. The aim of this paper is to answer two basic research questions constructed on the theoretical framework; (1) Have spatial proximity been reproduced within cluster network relations? (2) Which one does affect the innovation capacity (R&D activities) of firms positively; subcontracting networks or service networks? To answer the research questions, in-depth interviews have been made with 97 subcontracting firms located in Ankara defense and aviation cluster. Furthermore, interviews with 6 main contractor firms have been