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Journal ArticleDOI

Location, Competition, and Economic Development: Local Clusters in a Global Economy

01 Feb 2000-Economic Development Quarterly (Sage PublicationsSage CA: Thousand Oaks, CA)-Vol. 14, Iss: 1, pp 15-34
TL;DR: Clusters represent a new way of thinking about national, state, and local economies, and they necessitate new roles for companies, government, and other institutions in enhancing competitiveness as mentioned in this paper.
Abstract: Economic geography during an era of global competition involves a paradox. It is widely recognized that changes in technology and competition have diminished many of the traditional roles of location. Yet clusters, or geographic concentrations of interconnected companies, are a striking feature of virtually every national, regional, state, and even metropolitan economy, especially in more advanced nations. The prevalence of clusters reveals important insights about the microeconomics of competition and the role of location in competitive advantage. Even as old reasons for clustering have diminished in importance with globalization, new influences of clusters on competition have taken on growing importance in an increasingly complex, knowledge-based, and dynamic economy. Clusters represent a new way of thinking about national, state, and local economies, and they necessitate new roles for companies, government, and other institutions in enhancing competitiveness.

Summary (2 min read)

1. Introduction

  • One of the main tasks of the present time for Ukraine is to increase the competitiveness of the national economy.
  • They appear in traditional industries and in the areas of high technology, in the production and commercial segment or in the service sector, as well as in social spheres.

3. Materials and Methods

  • An essential condition for obtaining new knowledge on the basis of discovered scientific facts during the conduct of scientific research is the use of well-founded scientific research methods.
  • Obtaining the desired result directly depends on the original theoretical position, from the principle approach to the problem statement and the definition of the path of research.

4. Results

  • The leading countries of the world with high indicators of development of the national economy have achieved their competitiveness through the introduction of innovative technologies.
  • In the EU countries, demand for transport-logistics services is growing every year.
  • The qualitative functioning of the TLC will contribute to the high level of service of transport and logistics consumers.
  • The geographic and geopolitical position of Ukraine is positioning it as a country with a high transit rate.
  • Such a model of cluster development is aimed at increasing global competitiveness on the basis of scientific and technological advances and innovations.

In the last five years there has been a tendency to increase volumes of transportation of freights by

  • Rolling stock of road transport (Table 2).
  • Thus, in 2018 more than 29% of the total volume of freight transportation was carried out by road transport.
  • Compared to 2013, the specific gravity of road transport increased by more than 5%.
  • In 2018, the specific gravity of freight transportation by rail was 51.6% of the total volume and decreased by almost 7% compared to 2013.
  • The contribution of various types of transport to freight turnover for the period 2013-2018 is shown in Table 3.

At the same time, in the first place, as in the analogous period of 2017, rail transport remains.

  • According to the results of the analysis of the data in 2018, freight turnover by rail decreased by 3% compared to the previous year.
  • For the last three years, freight turnover by road transport has a steady upward trend.
  • There is a tendency to fluctuate data on the average distance of freight transportation by different types of transport (Table 4).
  • According to the data of the table in recent years there is an increase in the average distance of transportation of 1 ton of freight by all types of transport, except water.

An analysis of the transport sector in the provision of services (Table 5) shows that the volumes of

  • Transport services provided in 2018 amounted to almost 5% of the total volume of services sold by enterprises of various types of economic activity.
  • Ukraine is an active participant in the international transport services market.
  • It has significant potential to increase offers to external parterres and expand their capacity to deliver.
  • Analysis of the volume of provision of transport services in different customs modes by various types of transport (Figure 5, Figure 6), allows us to conclude that in the export mode, the highest rates have a pipeline transport, but in the mode of import the most popular are air and rail transport.
  • Research and analysis of the indicators of the transport industry has shown that they have ambiguous dynamics.

5. Discussion

  • Introduction of clustering in the processes of management of the transport industry activity contributes to the formation of a new strategy of cooperation between enterprises that are part of the transport- logistics cluster, to increase the efficiency of their operation and promotes the development of the transport sector of the country.
  • Formation of a cluster unit leads to increased competitiveness, the formation of a new strategy for cooperation between enterprises, organizations and institutions of various levels.
  • Currently, there are about 50 clusters operating in Ukraine, among which the following can be distinguished: Carpathian region (transport-logistic cluster); Odessa region (cluster "Odessa"); Kherson region (transport-logistic cluster "Southern Gates of Ukraine").

6. Conclusions

  • The foreign experience of using a cluster approach to the formation of transport-logistic clusters has shown that at present there are no universal approaches in solving this issue.
  • Each country develops its own models and approaches to creating clusters and managing their development, taking into account the availability of natural, technological, financial, labor and intellectual resources.
  • An analysis of the models of TLC functioning in the leading countries of the world, an analysis of the state and trends of the transport industry in Ukraine over the last years, allows us to conclude that the Italian model is the closest to the implementation in Ukraine.
  • The formation of transport-logistics clusters is an innovative and promising direction for improving the efficiency of the transport industry in Ukraine.
  • Merge into a cluster has a number of ‹ 161 › benefits for enterprises, organizations and institutions that it includes, the main of which are: a clearer focus on the market of transport services and the ability to respond promptly to its needs.

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ICCPT 2019: Current Problems of Transport: Proceedings of the 1st International Scientific
Conference, May 28-29, 2019, Ternopil, Ukraine
ICCPT 2019: Current Problems of Transport. https://iccpt.tntu.edu.ua
© 2019 The Authors. Published by TNTU Publ. and Scientific Publishing House “SciView”.
This is an open access article under the CC BY license (https://creativecommons.org/licenses/by/4.0/).
Peer-review under responsibility of the Scientific Committee of the 1st International Scientific Conference
ICCPT 2019: Current Problems of Transport
152
Formation of transport-logistic clusters in Ukraine
Svitlana Sharai
1
, Maksym Roі
2
, Daryna Dekhtiarenko
3
1
National Transport University, Omelyanovicha-Pavlenko str. 1, Kyiv, 01010, Ukraine; Svetasharai@gmail.com
2
National Transport University, Omelyanovicha-Pavlenko str. 1, Kyiv, 01010, Ukraine; 7569027@ukr.net
3
National Transport University, Omelyanovicha-Pavlenko str. 1, Kyiv, 01010, Ukraine; rinada1980@gmail.com
Abstract: Transport play an important role in the development of the economy. For efficient
functioning of the transport system there should be not only high technical condition of rolling stock,
but also developed transport infrastructure. The geographic position of Ukraine makes it a promising
transit state. Thanks to the research, it has been found that in Ukraine there are priority terrestrial
modes of transport in comparison with other types. Since transport is one of the main components of
economic development, it is relevant to study this sector of the economy and identify prospective
directions for improvement, namely the formation of Transport-Logistics Clusters (TLC) in Ukraine.
Having analyzed the experience of other countries in the establishment of TLC, they have identified
the benefits of different cluster strategies for the formation of TLCs in Ukraine.
Keywords: clustering, transport-logistic cluster, cluster, transport network.
1. Introduction
One of the main tasks of the present time for Ukraine is to increase the competitiveness of the
national economy. Transport has a great influence on all spheres of the economy, as it provides the
promotion of material flows in macro-logistics chains. The development of the transport-logistic system
is one of the important components of the Ukrainian economy. Considering the experience of
economically developed countries, it can be argued that in order to increase the level of technological
potential of the country, it is necessary to introduce innovative methods into its general economic
system.
One of the modern innovative technologies for the development of the transport-logistic system is
the formation of a transport-logistic complex in Ukraine. This requires effective operation of the
transport infrastructure, the attraction of an efficient rolling stock for the transport process, as well as
investments to ensure the quality work and competitiveness of the transport industry in the European
and domestic markets of transport services. The modern direction of improving the efficiency of
transport sector enterprises is the creation of transport-logistic clusters.
Many foreign and domestic scientists consider issues relating to the functioning of cluster units
and the peculiarities of the formation and development of transport-logistic clusters, among them:
Porter М. [1], Solvell O. [2], Williams M. [2], Kergel H. [3], Hatsch S. [3], Delgado M. [4], Stern S. [4],
Wennberg K. [5], Lindqvist G. [5], Ketels Ch. [6], Kovbatyuk M.V. [7], Doroshchuk V.O. [8], Chupaylenko
O.A. [9, 10], Grytsenko S.I. [11], Karpenko O.O. [12]. Goblyk V.V. [13], Ivanov S.V. [14], Popova N.V. [15],
Volkovska G.G. [16], Yanovskyi P.O. [16] and many other.
In scientific works of these authors the theoretical and methodological aspects of cluster
formation, the preconditions for their creation and influence on the competitiveness of the region,
within which formed cluster structures, were studied.

ICCPT 2019: Current Problems of Transport https://iccpt.tntu.edu.ua
153
The founder of the cluster approach, M. Porter has defined the cluster as a concentration in the
geographic region of interconnected and interrelated enterprises and institutions within a particular
region [1].
Researchers O. Solwell and M. Williams in their work have considered the evolutionary and
constructive factors which influence the mechanisms of cluster creation and determine its development
and competitiveness [2].
In the work of the scientist K. Ketels [6] it has been put forward a hypothesis regarding the most
effective policy of cluster support. It is a policy of cluster activation aimed at overcoming the negative
factors that hinder the evolution of clusters, improving the business environment, infrastructure
development, etc., which creating the conditions that allow the cluster to develop on its own.
Author Kovbatyuk M.V. in his scientific work has determined that the cluster represents itself a
networked production and commercial structure that has the ability to concentrate and bring together
related manufacturers, often even competing, for the purpose of co-operation for the production of
competitive products [7]. This is confirmed by the development of a network of clusters in Europe and
their integration into global, primary and secondary TLCs.
Doroshchuk V.O. is engaged in research of the concept of clusters. He has given a generalized
definition of the concept of "cluster", having determined that the cluster is a territorial and voluntary
association of business structures, scientific institutions, institutions of market infrastructure and
institutions of the authorities for the purpose to increase the competitiveness of its own products and
promote the economic development of the region and enhance the competitive advantages of each
other through the effect of synergy [8]. They are created from a small (10-15 companies) and a large
number of enterprises and structures (6-7 thousand companies) in various forms of associations and
organizations. The cluster is considered as the geographical concentration of companies operating in a
separate business, and the conglomeration of large and small firms, some of which may be the property
of foreigners. They appear in traditional industries and in the areas of high technology, in the
production and commercial segment or in the service sector, as well as in social spheres.
Author Chupaylenko O.A. in its researches has defined the transport-logistic cluster as a set of
regional motor transport enterprises, representatives of enterprises of other types of transport,
logistics companies, licensed warehouses, local authorities and research institutes in the form of
associative unit with adequate financial contributions of participants, operating infrastructure, modern
communications that enhance the interaction and benefits compared to other competitors, which
allows to increase investment attractiveness and sustainable development of regional areas. They are
divided into three categories: port, border and territorial (regional) [9].
Author Grytsenko S.I. in his monograph has described the concept of a transport-logistic cluster,
which involves the unification of certain regional, functional and economically connected logistics units:
international transport corridors, transport nodes of main infrastructure, transport and distribution
logistics centers, main, regional and local routes of connection into a single system of transportation
process, able to provide high-quality logistic service to internal or external consumers in minimizing
general logistics expenses [11].
Having examined the work of clusters, author Karpenko O.O. has determined that the creation of
clusters will contribute to the growth of productivity and innovative activity of enterprises that are the
parts of the cluster, as well as to increase the intensity of development of small and medium
enterprises, to increase the attraction of investments, will help accelerate socio-economic development
of regions, where the cluster will placement, which will allow to increase the number of jobs, salaries,
revenues to budgets of all levels, increase the stability and the competitiveness of the regional
economy [12].
Among the strategic priorities of the European Commission is the development of cluster concepts,
since cluster policy has been recognized as one of the foundations for building Europe's
competitiveness and its dynamic development through the introduction of innovations. The purpose of
the European Commission for clusters is to maximize the contribution of clusters to the development of
the European economy, the growth of entrepreneurship and the enhancement of regional economic
competitiveness [17].

Svitlana Sharai, Maksym Roі, Daryna Dekhtiarenko https://iccpt.tntu.edu.ua
3. Materials and Methods
An essential condition for obtaining new knowledge on the basis of discovered scientific facts
during the conduct of scientific research is the use of well-founded scientific research methods.
Obtaining the desired result directly depends on the original theoretical position, from the principle
approach to the problem statement and the definition of the path of research.
In order to reveal the theoretical foundations, peculiarities and characteristics of the processes of
formation of transport-logistic clusters in Ukraine, a statistical analysis of the activity of international
transport-logistic clusters and indicators of activity of the transport industry of Ukraine and modes of
transport included in its transport system was used, and the general scientific methods of research
were used: method of empirical research (monitoring, comparison), method of theoretical research
(formalization), general methods of research (analysis, synthesis, analogy).
4. Results
The leading countries of the world with high indicators of development of the national economy
have achieved their competitiveness through the introduction of innovative technologies.
The world experience of recent decades confirms that cluster initiatives are rapidly expanding in
developed countries. Due to the fact that a number of states have a federal structure, in some of them
the cluster policy began to be implemented at the regional level earlier than at the federal level.
According to the European cluster observatory in Europe there are more than 2 thousand regional
clusters, and the potential for the development of cluster entities for the future is estimated at 9
thousand units [18].
In the EU countries, demand for transport-logistics services is growing every year. One of the most
promising technologies at present time is the formation of Transport-Logistic Clusters (TLCs). There
are more than 86 logistic clusters in the territory of Europe, of which about 25 are the main ones that
can be considered as global clusters of European significance (through them pass the main cargo flows),
as well as about 60 secondary clusters. The qualitative functioning of the TLC will contribute to the high
level of service of transport and logistics consumers. In this case, it is necessary to take into account the
needs and wishes of consumers, to establish a strong relationship between all enterprises involved in
the process of cargo transportation, which will promote competitiveness and customer satisfaction
with logistics services.
EU countries adhere to the principles of the operation of TLCs, which allow the provision of quality
logistics services, the main of which are:
- the offer of the most complete list of transport and related services on the basis of contractual
relations with each participant of the logistics chain (the formation of a data bank of logistic chains);
- organization of complex transport services on the basis of a single contract for integrated
services and a single order for all services, the formation of tasks for participants of the logistics chain
based on the order of the user of transport services, centralized control of the order fulfillment;
- standardization and unification of transport and other documents used by participants in
logistics chains and which are necessary for carrying out transportation, in order to ensure the
possibility of creating a single information space;
- development of a unified marketing strategy and tactics of logistics chain participants in the
market of transport services, joint conducting market researches and marketing activities that ensure
the promotion of all participants in the logistics chain in the market of transport services and formation
of demand for integrated transport services;
- the distribution of structural units of the cluster on a geographic basis in order to maximize the
coverage of the market of transport services, the implementation of operational management of the
work of logistics chains in the places of formation and intersection of freight traffic;
- organization of cooperation with Ukrainian and international organizations involved in transport
logistics;
- development of organizational principles of work on the basis of world standards and
international treaties, agreements, conventions;
- integration with international logistics centers and provision of information exchange;

ICCPT 2019: Current Problems of Transport https://iccpt.tntu.edu.ua
155
- standardization of information interaction of logistic chains of participants of the international
transport-logistic cluster [13].
Joining the cluster it gives a number of benefits to the enterprises and institutions that it includes,
the main of which are: a clearer orientation to the market of transport services and the possibility of
adjusting it to the needs of consumers; the opportunity for the cluster participants to more effectively
defend their interests at the level of local authorities, participate in large investment projects and join
the joint promising program of their development. The transport-logistic cluster should include
transport, transport-logistics enterprises, as well as enterprises that serve the service, institutions of
legislative and executive power of different levels. Carrying out high-quality transport activity depends
on cooperation of business, science and authorities. Therefore, the formation of a transport-logistic
cluster is influenced by certain sectors, such as the manufacturing sector, the administrative sector, the
transport-logistic sector, the service sector, the financial sector, the innovation sector (specialized
universities, research institutes that develop new innovative methods for implementation in the
transport process, consulting centers), state-legal sector [19].
The geographic and geopolitical position of Ukraine is positioning it as a country with a high
transit rate. According to forecasts, 5 of the 11 branches of Hyperloop high-speed ground transport can
pass through the territory of Ukraine, of which three pass through Kyiv: the first will connect China,
Europe and Canada; the second one - Asia, the Middle East, Europe and North Africa; the third - Spain
and China [14]. The main part of clusters is expected to be formed at the intersection of main cargo
streams and in places of passage of transport corridors, which allows to reach the objects of warehouse
infrastructure. Therefore, the formation of TLC will provide the need for both external and internal
logistics services.
Today, the world practice of forming and functioning TLC considers several models that have their
own peculiarities in work. There are three varieties of clusters: scientific clusters, transferring their
technologies to industry; clusters that combine research and production; clusters that arise on the basis
of innovative firms operating in a competitive environment.
The Italian cluster model consists of a set of small firms (small and medium enterprises), which
are united in various associations to enhance their competitiveness. In this model, the state plays a
significant role, providing its support. Significant role in the development of Italian clusters has
"collective institutes" - national conferences, industrial parks, financial and marketing consortia,
technological institutes [15, 16].
The peculiarity of the American model of the cluster is the joint activity of state structures,
industrial enterprises and academic organizations. Such a model of cluster development is aimed at
increasing global competitiveness on the basis of scientific and technological advances and innovations.
In the German model of clustering, the preference is given to the development of the economy on
the basis of high technology - this is precisely in this direction the consolidation of the efforts of
industrial and scientific centers.
The British model of clustering involves reviewing the priorities of industrial policy, which results
is the formation of a so-called promising technological program on the basis of a mixed sector-cluster
approach [15]. An example of the operation of the British TLC model can be the see cluster, which was
established in 2003. Its aim was to increase investment in the industry and increase its efficiency at the
local, regional, national and international levels.
An important component of the TLC is transport and its infrastructure. For a better understanding
of the opportunities and prospects of an indicative selection of a TLC model for Ukraine, we need to
consider trends in transport and transport infrastructure development in our country, using statistical
data [20].
The analysis of freight volumes (Figure 1) has showed that there has been a tendency for their
increase during the last four years, even though the volume of transportation in 2018 decreased by
4.9% compared to 2017. However, compared to 2015, volumes of transportation grew by 8.7%.

Svitlana Sharai, Maksym Roі, Daryna Dekhtiarenko https://iccpt.tntu.edu.ua
98,1
89,9
89,4
103,8
101,8
98,1
80
85
90
95
100
105
110
2013 2014 2015 2016 2017 2018
Year
Figure 1. Indices of freight transportation (percentage to the previous year) for the period 2013-2018
Transportation of goods by land transport in the period of 2013-2017 was a priority (Table 1).
Table 1. Volumes of freight transportation by types of transport, (million tons)
Type of
transport
Year
2013
2014
2015
2016
2017
2018
Rail
441,8
387,0
350,0
344,1
339,5
322,3
Road
183,5
178,4
147,3
166,9
175,6
187,2
Pipeline
125,9
99,7
97,2
106,7
114,8
109,4
Water
6,3
6,0
6,4
6,7
5,9
5,6
Air
0,1
0,1
0,1
0,07
0,1
0,1
In the last five years there has been a tendency to increase volumes of transportation of freights by
rolling stock of road transport (Table 2). Thus, in 2018 more than 29% of the total volume of freight
transportation was carried out by road transport. Compared to 2013, the specific gravity of road
transport increased by more than 5%. In 2018, the specific gravity of freight transportation by rail was
51.6% of the total volume and decreased by almost 7% compared to 2013.
Table 2. Specific gravity of types of transport in freight transportation, (%)
Type of transport
Year
2013
2014
2015
2016
2017
2018
Rail
58,32
57,66
58,24
55,10
53,39
51,60
Road
24,22
26,58
24,51
26,73
27,61
29,97
Pipeline
16,62
14,85
16,17
17,09
18,05
17,52
Water
0,83
0,89
1,06
1,07
0,93
0,89
Air
0,01
0,01
0,02
0,01
0,02
0,02
The contribution of various types of transport to freight turnover for the period 2013-2018 is
shown in Table 3.
Table 3. Freight turnover by type of transport and percentage of growth / decrease to the previous year, (million
ton-kilometers / %)
Year
Type of transport
Rail
Road
Pipeline
Water
Air
million
tkm
%
million
tkm
%
million
tkm
%
million
tkm
%
million
tkm
%
2013
224017,8
94,2
40487,2
103,2
109651,8
98,2
4615,2
86,7
273,0
75,2
2014
209634,3
95,5
37764,2
94,9
82050,9
118,5
5462,3
73,6
240,0
88,3
2015
194321,6
92,5
34431,1
91,2
80944,1
100,1
5434,1
98,9
210,9
88,2
2016
187215,6
96,0
37654,9
109,1
94378,9
117,0
3998,6
73,6
225,9
107,0
2017
191914,1
102,3
41178,8
108,4
105434,4
111,7
4257,1
106,3
272,7
120,5
2018
186334,1
97,1
42569,5
102,7
99239,9
94,1
3363,0
78,7
339,7
123,4

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01 Jan 1890
TL;DR: In this article, the authors present a survey of the general relations of demand, supply, and value in terms of land, labour, capital, and industrial organization, with an emphasis on the fertility of land.
Abstract: BOOK I: PRELIMINARY SURVEY 1. Introduction 2. The Substance of Economics 3. Economic Generalizations or Laws 4. The Order and Aims of Economic Studies BOOK II: SOME FUNDAMENTAL NOTIONS 1. Introductory 2. Wealth 3. Production, Consumption, Labour, Necessaries 4. Income. Capital. BOOK III: ON WANTS AND THEIR SATISFACTION 1. Introductory 2. Wants in Relation to Activities 3. Gradations of consumers' demand 4. The elasticity of wants 5. Choice between different uses of the same thing. Immediate and deferred uses. 6. Value and utility BOOK IV: THE AGENTS OF PRODUCTION. LAND, LABOUR, CAPITAL AND ORGANIZATION T 1. Introductory 2. The Fertility of Land 3. The Fertility of Land, continued. The Tendency to Diminishing Return. 4. The Growth of Population 5. The Health and Strength of the Population 6. Industrial Training. 7. The Growth of Wealth 8. Industrial Organization 9. Industrial Organization, continued. Division of Labour. The Influence of Machinery 10. Industrial Organization, continued. The Concentration of the Specialized Industries in Particular Localities. 11. Industrial Organization, continued. Production on a Large Scale 12. Industrial Organization, continued. Business Management. 13. Conclusion. Correlation of the Tendencies to Increasing and to Diminishing Return BOOK V: GENERAL RELATIONS OF DEMAND, SUPPLY, AND VALUE 1. Introductory. On Markets. 2. Temporary Equilibrium of Demand and Supply 3. Equilibrium of Normal Demand and Supply 4. The Investment and Distribution of Resources 5. Equilibrium of Normal Demand and Supply, continued, with reference to long and short periods 6. Joint and Composite Demand. Joint and Composite Supply 7. Prime and total cost in relation to joint products. Cost of marketing. Insurance against risk. Cost of Reproduction. 8. Marginal costs in relation to values. General Principles. 9. Marginal costs in relation to values. General Principles, continued 10. Marginal costs in relation to agricultural values 11. Marginal costs in relation to urban values 12. Equilibrium of normal demand and supply, continued, with reference to the law of increasing return 13. Theory of changes of normal demand and supply, in relation to the doctrine of maximum satisfaction 14. The theory of monopolies 15. Summary of the general theory of equilibrium of demand and supply BOOK VI: THE DISTRIBUTION OF THE NATIONAL INCOME 1. Preliminary survey of distribution 2. Preliminary survey of distribution, continued 3. Earnings of labour 4. Earnings of labour, continued 5. Earnings of labour, continued 6. Interest of capital 7. Profits of capital and business power 8. Profits of capital and business power, continued 9. Rent of land 10. Land tenure 11. General view of distribution 12. General influences of progress on value 13. Progress in relation to standards of life

11,519 citations

Journal ArticleDOI
TL;DR: In this paper, the authors compare the geographic location of patent citations to those of cited patents, as evidence of the extent to which knowledge spillovers are geographically localized, and find that citations to U.S. patents are more likely to come from the U. S., and more likely than coming from the same state and SMSA as cited patents than one would expect based only on the preexisting concentration of related research activity.
Abstract: We compare the geographic location of patent citations to those of the cited patents, as evidence of the extent to which knowledge spillovers are geographically localized. We find that citations to U.S. patents are more likely to come from the U.S., and more likely to come from the same state and SMSA as the cited patents than one would expect based only on the preexisting concentration of related research activity. These effects are particularly significant at the local (SMSA) level, and are particularly apparent in early citations.

5,937 citations

01 Jan 2000

5,839 citations

Posted Content
TL;DR: In this paper, the spatial distribution of innovation activity and the geographic concentration of production are examined, using three sources of economic knowledge: industry R&D, skilled labor, and the size of the pool of basic science for a specific industry.
Abstract: Previous research has indicated that investment in R&D by private firms and universities can lead to knowledge spillover, which can lead to exploitation from other third-party firms. If the ability of these third-party firms to acquire knowledge spillovers is influenced by their proximity to the knowledge source, then geographic clustering should be observable, especially in industries where access to knowledge spillovers is vital. The spatial distribution of innovation activity and the geographic concentration of production are examined, using three sources of economic knowledge: industry R&D, skilled labor, and the size of the pool of basic science for a specific industry. Results show that the propensity for innovative activity to cluster spatially is more attributable to the influence of knowledge spillovers and not merely the geographic concentration of production. (SFL)

4,252 citations

Frequently Asked Questions (18)
Q1. What future works have the authors mentioned in the paper "Formation of transport-logistic clusters in ukraine" ?

Therefore, the development of theoretical foundations for the formation of TLCs is a topical issue and it needs further research. 

In this paper, Kovbatyuk et al. studied the benefits of different cluster strategies for the formation of transport-logistics clusters ( TLCs ) in Ukraine. 

The main part of clusters is expected to be formed at the intersection of main cargo streams and in places of passage of transport corridors, which allows to reach the objects of warehouse infrastructure. 

The factors influencing the volatility of volumes of freight transportation may include such as the reduction of industrial production due to the external markets, the reduction of domestic demand due to the decrease in purchasing power of the population. 

In the Italian model of the cluster the focus of its operation is given to small competing firms that unite to enhance competitiveness. 

According to the European cluster observatory in Europe there are more than 2 thousand regional clusters, and the potential for the development of cluster entities for the future is estimated at 9 thousand units [18]. 

Introduction of clustering in the processes of management of the transport industry activity contributes to the formation of a new strategy of cooperation between enterprises that are part of the transport- logistics cluster, to increase the efficiency of their operation and promotes the development of the transport sector of the country. 

Significant role in the development of Italian clusters has "collective institutes" - national conferences, industrial parks, financial and marketing consortia, technological institutes [15, 16]. 

Ukraine's orientation towards European integration and market transformations, a positive trendtowards increased a cargo flows to the European Union requires solutions to issues related to ensuring competitiveness of the transport industry enterprises of the country, scientific substantiation of the possibilities of Ukraine's integration into the European transport system and development of its transport sector by creating effective transport-logistic clusters taking into account the experience of developed countries of the world. 

The most promising cluster centers can be considered such large cities as Kiev, Kharkiv, Zaporizhzhia, Odessa, as they are the leading centers of railways and highways of their region. 

The state, regional and local structures of Ukraine have begun the introduction of clustering in theprocesses of formation, management and optimization of competitive units in various sectors of social production. 

Joining the cluster it gives a number of benefits to the enterprises and institutions that it includes,the main of which are: a clearer orientation to the market of transport services and the possibility of adjusting it to the needs of consumers; the opportunity for the cluster participants to more effectively defend their interests at the level of local authorities, participate in large investment projects and join the joint promising program of their development. 

The British model of clustering involves reviewing the priorities of industrial policy, which resultsis the formation of a so-called promising technological program on the basis of a mixed sector-cluster approach [15]. 

Merge into a cluster has a number of‹ 161 ›benefits for enterprises, organizations and institutions that it includes, the main of which are: a clearer focus on the market of transport services and the ability to respond promptly to its needs. 

The basis for forming a transport-logistic cluster should be the transport, logistics and other enterprises that serve the service function, as well as the legislative and executive institutions of different levels. 

Such a model of cluster development is aimed at increasing global competitiveness on the basis of scientific and technological advances and innovations. 

transport services provided in 2018 amounted to almost 5% of the total volume of services sold by enterprises of various types of economic activity. 

the formation of a transport-logistic cluster is influenced by certain sectors, such as the manufacturing sector, the administrative sector, the transport-logistic sector, the service sector, the financial sector, the innovation sector (specialized universities, research institutes that develop new innovative methods for implementation in the transport process, consulting centers), state-legal sector [19]. 

Trending Questions (1)
How location becomes one of the competitive advantages for Fedex?

The prevalence of clusters reveals important insights about the microeconomics of competition and the role of location in competitive advantage.