Showing papers on "Business cluster published in 2008"
TL;DR: In this article, the authors argue for the inclusion of an analysis of industry clusters when making decisions about global or local sourcing and support the view that resources which enable a firm to achieve sustainable competitive advantages can be located beyond its legal boundaries.
247 citations
TL;DR: In this article, the authors use ecological arguments to predict an inverted U-shaped relationship between the concentration of industry clustering within a geographic location and the venture's internationalization, and explore whether venture characteristics influence the nature of this relationship.
Abstract: In this paper, we argue that geographic location may be one reason why some ventures are able to acquire the resources needed to internationalize while others cannot. We use ecological arguments to predict an inverted U-shaped relationship between the concentration of industry clustering within a geographic location and the venture’s internationalization. We also explore whether venture characteristics influence the nature of this relationship. Our hypotheses are regressed on international intensity and scope, and analyzed through a sample of 156 publicly held new ventures. Results confirm that location influences new venture internationalization, and firm characteristics impact the nature of the relationship.
236 citations
TL;DR: In this article, the authors discuss how clusters can be leveraged for economic policy and what the role of different stakeholders in this process is, and conclude with an application of the concept to resource-rich, oil-dependent economies.
Abstract: Over the last decades, changes in the global economy and the emergence of Global Value Chains (GVCs) have raised the interest in understanding the specific conditions and cross-company interactions within and across locations. For companies, the need to choose the right location for specific activities moved from an operational to a strategic issue. For countries, regions and cities, competition raised the stakes of understanding how to improve productivity and attract firms in specific fields beyond providing low factor costs and subsidies. Many countries, from natural-resource-rich, to transition economies, and to developed countries have launched competitiveness policies and cluster initiatives involving various stakeholders. The paper addresses how clusters can be leveraged for economic policy and what the role of different stakeholders in this process is. This paper summarises the cluster concept, focusing on the main theoretical framework and on recent empirical findings, and discusses key pillars of a cluster-based economic policy approach. The paper concludes with an application of the concept to resource-rich, oil-dependent economies.
199 citations
Book•
04 Apr 2008TL;DR: In this article, the authors address key developmental factors (emphasising the importance of space and place) shaping the location and morphology of these clusters, informed by field work in London, San Francisco, Vancouver, and Singapore, as well as by recent conceptual contributions from Allen Scott, Richard Florida, and Andy Pratt, among others.
Abstract: New industry clusters within the inner city constitute important features of the spatiality of the New Economy, and include computer graphics and imaging, software design, and multimedia industries (as well as technologically “retooled” industries such as architecture and graphic design). This article addresses key developmental factors (emphasising the importance of “space and place”) shaping the location and morphology of these clusters, informed by field work in London, San Francisco, Vancouver, and Singapore, as well as by recent conceptual contributions from Allen Scott, Richard Florida, and Andy Pratt, among others. The analysis demonstrates that these new industry clusters act as significant agents of urban change in the 21st century, with implications for the reassertion of production in the inner city, for the reconfiguration of the urban space-economy, and for the regeneration of local communities. New Economy industries are thus central to the reshaping of the urban core, as well as to larger processes of socioeconomic change within the metropolis as a whole. But the expansion of these dynamic new industrial clusters is also associated with a range of more problematic (as well as broadly favourable) social and environmental impacts, and presents distinctive challenges for local planning and for urban theory.
196 citations
TL;DR: The authors examines the origins and emergence of technology-based industrial clusters in order to understand the forces that promoted economic development, and provides guidance on the role of policies in promoting cluster emergence.
Abstract: This book examines the origins and emergence of technology-based industrial clusters - regional concentrations of related firms and organizations - in order to understand the forces that promoted economic development. Many places attempt to emulate the world’s most famous industrial cluster Silicon Valley, with its rich institutional landscape of engaged and leveraged research universities, high-flying local venture capitalists, world class supporting business and legal consultants, and rich collaborative networks. While mature clusters may look similar, what really matters is the process by which clusters come into existence. But there is little understanding of such processes, and little guidance provided on the role of policies in promoting cluster emergence. The book attempts to bridge this gap in the literature by focusing on the early origins of high-technology cluster in Europe, the United States, and China, and the ensuing policy implications. The book is organized around three main themes: Creation Myths Revisited, Considering the Development Cluster Context, and Crafting Cluster and Economic Development Policy. The empirical analyses suggest that clusters that grow rapidly as compared to the less successful ones are distinguished by vigorous entrepreneurial activity and the active building of institutions aided by the forces of agglomeration economies.
177 citations
TL;DR: In a comprehensive study sponsored by the Appalachian Regional Commission and released in 2002, the authors identified technology-based clusters within and on the border of the Appalachian region and investigated how the industries in the identified clusters fared over the subsequent several years in terms of employment and new business formation as mentioned in this paper.
Abstract: Much of the existing empirical research on industry clusters focuses on the detection of clusters for economic development purposes. There are comparatively few studies that relate identified clusters to business and industry growth or that trace changes in designated clusters over time. This article seeks to better understand the link between industry clustering and regional economic outcomes. In a comprehensive study sponsored by the Appalachian Regional Commission and released in 2002, the authors identified technology-based clusters within and on the border of the Appalachian region. The Appalachian technology clusters constituted subregional concentrations of related industrial, research and development, and university-based strengths as of the middle to late 1990s. In this article, the authors investigate how the industries in the identified clusters fared over the subsequent several years in terms of employment and new business formation. They find evidence that clustering is associated with new bu...
125 citations
TL;DR: Phelps as discussed by the authors reviewed the nature and significance of external economies associated with multinational enterprise (MNE) participation in the manufacturing industries of host economies and argued that the balance of forces of internalization and externalization is currently skewed towards the former and the interests of MNEs rather than the latter and local and national communities and governments.
Abstract: Phelps N. A. Cluster or capture? Manufacturing foreign direct investment, external economies and agglomeration, Regional Studies. This paper reviews the nature and significance of external economies associated with multinational enterprise (MNE) participation in the manufacturing industries of host economies. It argues that the balance of forces of internalization and externalization is currently skewed towards the former and the interests of MNEs rather than the latter and the interests of local and national communities and governments. A stylized comparison of developmental and competition state interventions in relation to MNEs and their foreign direct investment (FDI) suggests that in the absence of co-ordinated interventions by governments, there will commonly be a failure of the logic of internalization to permit localized processes of externalization. Indeed, the experiences of the ‘competition states’ of the UK and the USA highlight the potential for the partial internalization or ‘capture’ of loc...
119 citations
TL;DR: In this paper, the authors explored the degree to which a jewellery cluster gains competitive advantage from its inner city location and the extent to which it is able to contribute to the regeneration of the local area.
Abstract: Inspired by US management guru Michael Porter (1995) the City Growth Strategy initiative is promoting business clusters as a means of encouraging the regeneration of deprived inner city areas in the UK. This paper draws on an ongoing evaluation of one of the initial pilots for this initiative — the City Fringe area of London where six creative clusters are being targeted as a means of stimulating local economic development and social inclusion. Drawing on baseline research with the jewellery cluster the paper explores the degree to which this cluster gains competitive advantage from its inner city location and the extent to which it is able to contribute to the regeneration of the local area. It thus provides a critique of Porter's theory and contributes to our understanding of the extent to which creative clusters can act as a tool for inner city regeneration.
115 citations
01 Apr 2008
TL;DR: In this article, the authors argue that many U.S. industry clusters are not as competitive as they could be, to the detriment of the nation's capacity to sustain well-paying jobs.
Abstract: America’s Challenge Due to rising global competition, the nation’s capacity for generating stable, well-paying jobs for a large number of U.S. workers is increasingly at risk. In this environment, regional industry clusters represent a valuable source of needed innovation, knowledge transfer, and improved productivity. For that reason, the public sector around the world has launched numerous programs to catalyze growthproducing collaboration in key industry clusters. However, this nation’s network of cluster initiatives remains thin and uneven. As a result, many U.S. industry clusters are not as competitive as they could be, to the detriment of the nation’s capacity to sustain well-paying jobs.
68 citations
TL;DR: In this paper, an initial exploration of the green building cluster in Portland, Oregon is presented, where the authors assess how the factors identified in Michael Porter's "diamond" support green building industry cluster in this region, describing the trends in terms of growth and expansion in the sector, and where possible, providing quantitative data to document the impact of this industry cluster.
Abstract: This study offers an initial exploration of the green building cluster in Portland, Oregon. Specific objectives include assessing how the factors identified in Michael Porter's “diamond” support the green building industry cluster in this region, describing the trends in terms of growth and expansion in the sector, and, where possible, providing quantitative data to document the impact of this industry cluster. The authors suggest that Portland has a robust and competitive green building cluster that is supported by many of the elements described in Porter's diamond—local and export demand, a critical mass of leading-edge firms, strong supporting institutions, qualified employees, and a robust supply chain. The study also identifies areas in need of additional support to realize the full potential for economic development in this cluster and offers an approach to mapping the green building cluster that may also inform analysis of other emerging sustainability clusters.
65 citations
TL;DR: The experience of intermediate steel-industry suppliers in the Pittsburgh region offers valuable insight into how traditional industrial clusters can serve as a source of economic resilience in regions like Pittsburgh, where a signature industry contracts or relocates.
Abstract: The experience of intermediate steel-industry suppliers in the Pittsburgh region offers valuable insight into how traditional industrial clusters can serve as a source of economic resilience in regions like Pittsburgh, where a “signature” industry contracts or relocates. The authors find that intermediate steel-industry suppliers in Pittsburgh remain an important part of the region's economic base, serving as a significant source of export income from national and international markets. Survey results offer a description of the cluster's characteristics. An important subset of firms in this cluster relies on key contacts in the region such as suppliers, partners, and business networks for collaboration on product development or marketing. By recognizing and supporting local linkages of these kinds, policy initiatives can help to strengthen such clusters and contribute to a region's economic resilience.
TL;DR: In this article, the authors explore the implications of regional sectoral agglomerations for the strategic management of firms and demonstrate the managerial implications of firms' membership in industry clusters.
Abstract: Purpose – The purpose of this paper is to explore the implications of regional‐sectoral agglomerations – clusters – for the strategic management of firms. Concentration of firms along a single value chain is a common phenomenon in modern economies, but has seldom been reflected in the realm of strategic management.Design/methodology/approach – The paper draws back on Porter's cluster model and the innovative milieu approach. A case‐study methodology consisting of a combination of action research and semi‐structured interviews is applied to four cases, illustrating the managerial implications of firm membership in industry clusters.Findings – The existence of regional‐sectoral clusters has a substantial impact on the strategic position of firms. An assumption underlying most current strategic management thinking, namely that spatial factors are not relevant, must be challenged. The paper illustrates options for firms located within as well as outside clusters.Research limitations/implications – This resear...
TL;DR: In this paper, the authors apply a model which emphasizes that local interaction or "buzz" in clusters and interaction with external firms and markets through translocal or global "pipelines" create reflexive dynamics.
Abstract: This analysis uses the case of a seemingly successful industry cluster (ie the film and TV industry in Munich) to demonstrate that deficits in the structure of social relations can impact a cluster's growth potential. In the period after World War II, Munich grew into a national centre of media industries in Germany due to the introduction of private/commercial TV, national entry barriers, and a supportive institutional infrastructure. The recent advertising crisis and the dissolution of the Kirch Group have, however, reinforced already existing internal dilemmas and contradictions. We suggest that the growth prospects of this industry are limited due to a lack of reflexive, interconnected communication and interaction patterns. In conceptual terms, we apply a model which emphasizes that local interaction or ‘buzz’ in clusters and interaction with external firms and markets through translocal or global ‘pipelines’ create reflexive dynamics. Based on this conception, participatory observation and semistruc...
TL;DR: In this article, the authors examined cluster trends in California's central San Joaquin Valley and northeast Indiana through the introduction of quantitative methods that detect microchanges in cluster development, which can capture whether a region's clusters are evolving and, if so, how they are changing.
Abstract: The ability to detect embryonic yet dynamic industry cluster changes can help regional decision makers proactively create strategic initiatives that support value-based development. This article examines cluster trends in California's central San Joaquin Valley and northeast Indiana through the introduction of quantitative methods that detect microchanges in cluster development. These methods capture whether a region's clusters are evolving and, if so, how they are changing. Built on the foundation of traditional quantitative cluster analysis techniques, these additional screening methods can capture entrepreneurial and innovative activity within the industry cluster context at an earlier stage than traditional methods can. This approach can provide industry sector clues as to what may drive future cluster development, both positive and negative, and it can offer early-stage opportunities to assess job quality and productivity to help determine the sustainability of new cluster developments.
TL;DR: The National Innovation Foundation (NIF) as mentioned in this paper is a new, nimble, lean, and collaborative entity devoted to supporting firms and other organizations in their innovative activities, which would boost the nation’s innovation leadership for the 21st century and raise productivity and incomes.
Abstract: Innovation drives America’s economic growth and ultimately determines its living standards and
those of its metropolitan areas. However, the nation faces a growing innovation challenge in today’s
global economy. To respond, the federal government should establish a National Innovation
Foundation (NIF)—a new, nimble, lean, and collaborative entity devoted to supporting firms and
other organizations in their innovative activities. By enhancing America’s world-class entrepreneurial and market environment, NIF would boost the nation’s innovation leadership for the 21st century and raise productivity and incomes. Moreover, by supporting workforce development and performance improvement in firms, NIF would help create better jobs for high school graduates in manufacturing and “low tech” services as well as those with advanced degrees in high technology industries.
America’s Challenge
• Global competition is increasing. Like manufacturing, call centers, and software production, corporate R&D is also shifting overseas. Over the last decade, the share of U.S. corporate R&D
sites declined from 59 to 52 percent within the United States, while it increased from 8 to 18
percent in China and India.
• American innovation leadership is slipping. The U.S. ranks only seventh among OECD countries in the percentage of GDP devoted to R&D expenditures.
• Private markets suffer innovation inefficiencies. Private firms tend to under-invest in innovation because no single business can capture all the economic benefits arising from new technologies, products, or business models.
Limitations of Existing Federal Policy
• There is no national innovation policy. Rather than comprising an explicit, focused, national
agenda, federal innovation efforts are scattered throughout government.
• There is little focus on services innovation and commercialization. Existing federal innovation activities pay little attention to the service sector and to the important roles that smaller firms and universities play in the commercialization process.
• There is no systematic innovation partnership between the federal government and state and local governments. Federal policies do little to support the effective, albeit underfunded, innovation efforts established by state and local governments.
A New Federal Approach
The federal government should establish a new National Innovation Foundation (NIF) with the sole
mission of promoting innovation. The NIF’s proposed budget would be $1-2 billion per year. The
new entity could exist as a new agency within the Commerce Department, a government-related
public corporation, or an independent federal agency like NSF. The NIF would:
• Catalyze industry-university research partnerships through national sector research grants.
• Expand regional innovation-promotion through state-level grants to fund activities like technology commercialization and entrepreneurial support.
• Encourage technology adoption by assisting small and mid-sized firms in implementing best-practice processes and organizational forms that they do not currently use.
• Support regional industry clusters with grants for cluster development.
• Emphasize performance and accountability by measuring and researching innovation, productivity, and the value-added to firms from NIF assistance.
• Champion innovation by promoting innovation policy within the federal government and serving as an expert resource on innovation to other agencies.
TL;DR: The authors identified twenty manufacturing industry clusters from a principal components analysis of inter-industry patterns of trade and measured the spatial employment concentration of each cluster's plants within a polycentric framework.
Abstract: Targeting industry clusters for economic development has become popular despite the lack of empirical evidence about the spatial scales over which various clusters agglomerate. This paper identifies twenty manufacturing industry clusters from a principal components analysis of interindustry patterns of trade and measures the spatial employment concentration of each cluster's plants within a polycentric framework. Two to eight centers of employment concentration are detected within the Southern California region for each set of trade linkages. Our spatial half-life measure reveals that half of a cluster's employment in associated establishments is located within a typical range of eight to twelve kilometers (about 5–7.5 miles) to the nearest employment center or subcenter for the particular cluster. Furthermore, employment in seventeen of the twenty clusters is found to be more spatially concentrated than manufacturing employment as a whole, suggesting that geographic proximity is important to interindustry linkages in the Southern California economy. More important, the spatial concentration across industry clusters varies considerably within the metropolitan area, implying that economic development practitioners should consider local context and adapt industry cluster theories to the specific advantages and disadvantages of their immediate locality.
TL;DR: Expectations for how firms in an industrial cluster make use of a public, broadband ICT infrastructure, particularly in support of e-commerce applications are developed and the question of whether ICT use, by enabling stronger ties to non-cluster partners, can weaken clusters is addressed.
Abstract: Based on a wide-ranging literature review, we argue that the information and communications technology (ICT) infrastructure has not received adequate attention for its role in the development and maintenance of industrial clusters. This article develops expectations for how firms in an industrial cluster make use of a public, broadband ICT infrastructure, particularly in support of e-commerce applications. We further address the question of whether ICT use, by enabling stronger ties to non-cluster partners, can weaken clusters. A case study of a successful biotechnology cluster in Denmark and Sweden—the Medicon Valley—is used to explore ICT use in a knowledge-intensive cluster context. We conclude that ICT use appears to strengthen rather than weaken the Medicon Valley cluster, and that firms located within a cluster appear to gain some unique advantages from their ICT usage that are not necessarily available to firms outside the cluster.
TL;DR: In this paper, a review of the literature on clusters and their contribution to building competitive advantage for businesses is presented, which reveals benefits that businesses can enjoy by clustering, among which are the sharing of strategic business information, innovation, market access, labour pooling and proximity to suppliers and customers.
Abstract: Globalization of trade is increasing the world competition and this has resulted in a growing number of countries and individual businesses seeking survival beyond their internal resources. Thus, the role of business clusters has become increasingly important and has gained more attention from both policy makers and academia, particularly in developed countries. This paper reviews the literature on clusters and their contribution to building competitive advantage for businesses. The review relies mostly on research that was conducted in developed countries, with only little evidence found in developing ones. The research reveals benefits that businesses can enjoy by clustering, among which are the sharing of strategic business information, innovation, market access, labour pooling and proximity to suppliers and customers. Associated challenges of clustering are also explored. The paper also points out some practical insights for policy makers and research implications for researchers in developing countries.
TL;DR: Key findings from the pilot project are outlined, including the needs for an appropriate pace of development, mix of technologies used, nurturing of business champions, flexibility, local facilitation, and real business outcomes, among others.
Abstract: Small businesses in desert Australia are disadvantaged by remoteness from suppliers and markets, workforce problems, and limited opportunities to explore alliances across the desert. This paper outlines an initiative to support and encourage capacity building in remote desert centres and to create networks to overcome the isolation experienced by desert-based small and medium-sized enterprises. Building on existing local initiatives and seizing the opportunities offered by a range of new information and communication technologies (ICT), businesses are linked together to explore the benefits of networking, to identify possible synergies and opportunities for collaboration, to gain practical ICT and networking skills and confidence in the processes, and create real outcomes for their business. The initiative began with a pilot project focused on training and mentoring business owners and managers in business clustering. In addition to education and training outcomes, this pilot produced more outcomes for the participating businesses than had been anticipated. In the final year $7 million of new business was reported. Many businesses embraced this way of working together to improve competitiveness; as a consequence the networks have continued to operate beyond the life of the pilot project. Several case studies are presented to demonstrate how ICT has been used for the transfer of ideas and knowledge, for collaboration, and to open new commercial opportunities for businesses that arose as a direct result of their participation. Proof of concept has been demonstrated in the value to businesses of this approach to long-distance inter-business cooperation and networking. The paper outlines key findings from the pilot project, including the needs for an appropriate pace of development, mix of technologies used, nurturing of business champions, flexibility, local facilitation, and real business outcomes, among others. These findings are being used to inform future developments in long-distance, cross-border business networking internationally and an expanded project involving nine regions of desert Australia.
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TL;DR: In this paper, the authors proposed a knowledge management system to support knowledge management activities within the cluster. But, creating and representing ontology create difficulties to organization due to the ambiguity and unstructured of source of knowledge.
Abstract: Knowledge-based economy forces companies in the nation to group together as a cluster in order to maintain their competitiveness in the world market. The cluster development relies on two key success factors which are knowledge sharing and collaboration between the actors in the cluster. Thus, our study tries to propose knowledge management system to support knowledge management activities within the cluster. To achieve the objectives of this study, ontology takes a very important role in knowledge management process in various ways; such as building reusable and faster knowledge-bases, better way for representing the knowledge explicitly. However, creating and representing ontology create difficulties to organization due to the ambiguity and unstructured of source of knowledge. Therefore, the objectives of this paper are to propose the methodology to create and represent ontology for the organization development by using knowledge engineering approach. The handicraft cluster in Thailand is used as a case study to illustrate our proposed methodology.
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TL;DR: In this article, the authors tried to illustrate how the industry cluster can increase the supply chain performance by focusing on the collaboration and knowledge exchange in supply chain and applied information technology is applied to facilitate the communication and the exchange of knowledge between the actors of a supply chain within the cluster.
Abstract: Industry cluster and supply chain are in focus of every countries which rely on knowledge-based economy. Both focus on improving the competitiveness of firm in the industry in the different aspect. This paper tries to illustrate how the industry cluster can increase the supply chain performance. Then, the proposed methodology concentrates on the collaboration and knowledge exchange in supply chain. For improving the capability of the proposed methodology, information technology is applied to facilitate the communication and the exchange of knowledge between the actors of the supply chain within the cluster. The supply chain of French stool producer was used as a case study to validate the methodology and to demonstrate the result of the study.
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TL;DR: For improving the capability of the proposed methodology, information technology is applied to facilitate the communication and the exchange of knowledge between the actors of the supply chain within the cluster.
Abstract: Industry cluster and supply chain are in focus of every countries which rely on knowledge-based economy. Both focus on improving the competitiveness of firm in the industry in the different aspect. This paper tries to illustrate how the industry cluster can increase the supply chain performance. Then, the proposed methodology concentrates on the collaboration and knowledge exchange in supply chain. For improving the capability of the proposed methodology, information technology is applied to facilitate the communication and the exchange of knowledge between the actors of the supply chain within the cluster. The supply chain of French stool producer was used as a case study to validate the methodology and to demonstrate the result of the study.
TL;DR: In this article, the authors proposed a general model of the flowchart approach to industrial cluster policy and applied this model to the automobile industry clusters of Guangzhou and Tianjin in China.
Abstract: This paper proposes a general model of the flowchart approach to industrial cluster policy and applies this model to the automobile industry clusters of Guangzhou and Tianjin in China. The flowchart approach to industrial cluster policy is an action plan for prioritising policy measures in a time-ordered series. We reached the following two conclusions. First, we clarified the effects of Honda, Nissan, and Toyota in Guangzhou and the effect of Toyota in Tianjin on the automobile industry clustering. Second, we established that local governments play a crucial role in successful industrial cluster policy, and that the mayor of the local government should be offered incentives to target industrial clustering and implement cluster policy.
01 Jan 2008
TL;DR: In this article, the authors look at why certain regions are successful in creating an innovative technology cluster (with chapters on Silicon Valley and the Italian Food districts) and why aspiring communities and districts seek to learn from those examples and create an internationally successful region or sector.
Abstract: Silicon Valley and the industrial districts of Italy, where shared identity, superior skills, regional specialization and trust-based networking among local firms have produced dynamic and flexible ecosystems, are inspiring examples of the successful promotion of thriving technology and business clusters. Cluster studies, besides acknowledging (the potential of) concentration and spill-overs in a dynamic network of larger companies and new start-up firms, also pay attention to the importance of investors, universities and other supportive institutions that contribute to the international and longer-term competitiveness of local industry clusters. This book looks at why certain regions are successful in creating an innovative technology cluster (with chapters on Silicon Valley and the Italian Food districts) and why aspiring communities and districts seek to learn from those examples and create an internationally successful region or sector (with chapters on the Dutch Biopartner program to stimulate entrepreneurship in the life sciences, on high-tech Israel and on the Italian Slow Food Movement). In some cases internationally renowned universities and/or research laboratories inspire engineers and scientists to become entrepreneurs and take the lead in cluster development (e.g. in the chapters on Food Valley Wageningen, the Knowledge Pearl Leuven-Flanders and the Scandinavian Oresund cluster). In other cases indigenous flagship firms, collaborating with each other and outsourcing many activities to smaller companies, may act as a region’s catalyst (e.g. in the chapters on Flanders Vegetable Valley, the Dutch horticultural industry and the Defence Diversification Agency in the UK). Chapters on North Carolina’s Research Triangle Park and the recent initiative to stimulate innovativeness in East Netherlands show that also an active government can stimulate emerging clusters by making local resources and funds available (e.g. risk capital, high-quality infrastructure), attracting foreign firms to invest and building ties between the private sector, knowledge institutions and local authorities.
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TL;DR: In this article, the authors take a critical view on regional industry clusters, in particular their identification and formation, and the policies which help create and support them, and present a critical analysis of regional industry clustering.
Abstract: This important book takes a critical view on regional industry clusters, in particular their identification and formation, and the policies which help create and support them.
Posted Content•
TL;DR: In this paper, the authors analyse the effect of urban amenities and industrial clustering on the locational behavior of Dutch fashion designers and find that urban amenities are considered more important than agglomeration economies in entrepreneurs' location decision.
Abstract: Urban economic growth and industrial clustering is traditionally explained by Marshallian agglomeration economies benefiting co-located firms. The focus on firms rather than people has been challenged by Florida arguing that urban amenities and a tolerant climate attract creative people, and the firms they work for, to certain cities. We analyse to what extent these two mechanisms affect the locational behaviour of Dutch fashion designers. On the basis of a questionnaire, we find that urban amenities are considered more important than agglomeration economies in entrepreneurs’ location decision. Designers located in the Amsterdam cluster do not profit from agglomeration economies as such, but rather from superior networking opportunities with peers both within and outside the cluster.
Journal Article•
TL;DR: In this article, the authors examine the literature that offers explanations for multinational enterprise (MNE) location in geographical business clusters and test some of the propositions of this literature against the findings of a study which compares MNEs and non-MNEs regarding the advantages and disadvantages of a location in the City of London financial services cluster, an agglomeration noted for its extraordinarily large MNE component.
Abstract: This paper examines the small but growing literature that offers explanations for multinational enterprise (MNE) location in geographical business clusters. It tests some of the propositions of this literature against the findings of a study which compares MNEs and non-MNEs regarding the advantages and disadvantages of a location in the City of London financial services cluster, an agglomeration noted for its extraordinarily large MNE component. The primary conclusion is that MNEs and non-MNEs have different and multiple motives for locating in the cluster. There are two business policy recommendations.
Posted Content•
TL;DR: In this article, it is argued that business clusters within the field of tourism economics define de facto the competitiveness of a tourist destination, and that these clusters of small and medium enterprises which operate in a tourism destination are a prerequisite contributing to its competitiveness.
Abstract: Business Clusters became foreground of economic thought in the 90s due to Michael Porter’s research work, who argued that the most successful export companies belong to group of enterprises of the same industry that are geographically close to one another. This issue became even more acute because of the globalisation of the economy and the need to plan and implement policies aiming mainly at strengthening the competitiveness of small and medium sized enterprises. Tourism, as an economic activity, includes a wide range of small and medium enterprises engaging in various sectors of it. It is argued that business clusters within the field of tourism economics define de facto the competitiveness of a tourist destination. Business clusters of small and medium enterprises which operate in a tourism destination are a prerequisite contributing to its competitiveness. Especially in Greece, it is alleged that clusters can maximise the abilities offered by technology, new markets and other external factors and contribute to the strengthening of competitiveness in the tourism industry.
Book Chapter•
01 Jan 2008
TL;DR: The importance of localisation through regions and business clusters is reflected in the media coverage of the topic (e.g., The Economist, December 1, 2007) as mentioned in this paper, and the presence of local clusters and the simultaneous development of a 'globalised' world where distances are no longer an obstacle to interorganisational relationships due to information and communication technology and the opportunities to reach every part of the world in a relatively short time is seen as a paradox.
Abstract: In recent years the term cluster has been widely used among researchers,
practitioners and politicians Clusters are found in various countries, eg, watch
clusters in Switzerland, automotive clusters in Germany as well as wine clusters in
Australia The current debate focusing on the benefits of globalisation contrasted
with the importance of localisation through regions and business clusters is reflected
in the media coverage of the topic (eg, Economist, December 1, 2007)
The presence of local clusters and the simultaneous development of a
'globalised' world where distances are no longer an obstacle to inter-organisational
relations due to information and communication technology and the opportunities to
reach every part of the world in a relatively short time is seen as a paradox (eg,
Porter, 1998, 2000) In theory, in global competition the role of the location should
matter less However, with regard to the relevance of clusters the opposite can be
observed Cluster development in recent years has increasingly become a relevant
arena of public policy through attention to regional economic development
initiatives It is argued that attracting firms to clusters has positive effects for a
whole region regarding the creation of jobs, higher purchasing power and other
benefits of increased economic activity
01 Jan 2008
TL;DR: Feser et al. as discussed by the authors argue that there are two broad ways policymakers might use industry cluster concepts to inform the design of regional innovation policy, i.e., to nurture the growth of selected groups of innovative industries and research strengths in a limited set of regions as a means of increasing levels of innovation economywide, and to use cluster ideas to reorient development strategies so that they leverage synergies among businesses and non-market institutions, thus improving innovation rates.
Abstract: This paper argues there are two broad ways policymakers might use industry cluster concepts to inform the design of regional innovation policy. The first, and clearly dominant approach, is to view identified technology-based clusters as targets for growth strategies, i.e., to nurture the growth of selected groups of innovative industries and research strengths in a limited set of regions as a means of increasing levels of innovation economy-wide (termed the cluster building approach). The second is to use cluster ideas to reorient development strategies so that they leverage synergies among businesses and non-market institutions, thus improving innovation rates (termed the synergy leveraging approach). The second perspective de-emphasizes clusters as entities and focuses attention on clustering as a dynamic process. Therefore it is more useful for policymaking in developing and transitioning economies where existing regional innovation clusters are small to non-existent. It also holds lessons for heavily industrialized economies, as the pursuit of clusters often confuses means and ends in development policy making. Contact: Edward Feser, Department of Urban and Regional Planning & Regional Economics Applications Laboratory, 111 Temple Buell Hall, MC-619, 611 Taft Drive, Champaign, IL, 61829, USA, feser@uiuc.edu. Clusters and the Design of Innovation Policy for Developing Economies