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What really goes on in Silicon Valley? Spatial clustering and dispersal in modular production networks

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  • Timothy J. Sturgeon
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    Abstract

    Is the geographic trajectory of capitalism toward spatial clustering or dispersal? Recent theoretical work in the stream of 'relational' economic geography includes several dynamic elements that increase the importance of spatial clustering over time. This paper develops the concept of 'modular production networks' to show that spatial clustering and dispersal can be compatible, mutually reinforcing trends. Modular production networks encompass nodes of tacit activity linked through the exchange of codified information to create global-scale production systems. In places like Silicon Valley, industry participants rely on the benefits of proximity to help build and manage global-scale production networks. Copyright 2003, Oxford University Press.

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    Bibliographic Info

    Article provided by Oxford University Press in its journal Journal of Economic Geography.

    Volume (Year): 3 (2003)
    Issue (Month): 2 (April)
    Pages: 199-225

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    Handle: RePEc:oup:jecgeo:v:3:y:2003:i:2:p:199-225

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    Cited by:
    1. D'Costa, Anthony P., 2006. "Exports, university-industry linkages, and innovation challenges in Bangalore, India," Policy Research Working Paper Series 3887, The World Bank.
    2. Vincent Frigant, 2007. "L'impact de la production modulaire sur l'approfondissement de la Division Internationale des Processus Productifs (DIPP)," Revue d'économie politique, Dalloz, vol. 0(6), pages 937-961.
    3. Murphy, James T., 2007. "The Challenge of Upgrading in African Industries: Socio-Spatial Factors and the Urban Environment in Mwanza, Tanzania," World Development, Elsevier, vol. 35(10), pages 1754-1778, October.
    4. Roberta Comunian, 2011. "Networks of knowledge and support. Mapping relations between public, private and not for profit sector in the creative economy," ERSA conference papers ersa10p275, European Regional Science Association.
    5. Vincent FRIGANT (GREThA), 2007. "Between Internationalisation and Proximity: the internationalisation process of automotive first tier suppliers," Cahiers du GREThA 2007-13, Groupe de Recherche en Economie Théorique et Appliquée.
    6. Leonhard Plank & Cornelia Staritz, 2013. "‘Precarious upgrading’ in electronics global production networks in Central and Eastern Europe: the cases of Hungary and Romania," Brooks World Poverty Institute Working Paper Series ctg-2013-31, BWPI, The University of Manchester.
    7. Henry G. Overman, 2004. "Can we learn anything from economic geography proper?," Journal of Economic Geography, Oxford University Press, vol. 4(5), pages 501-516, November.
    8. Sverre Herstad & Øyvind Pålshaugen & Bernd Ebersberger, 2011. "Industrial Innovation Collaboration in a Capital Region Context," Journal of the Knowledge Economy, Springer, vol. 2(4), pages 507-532, December.
    9. Carlo Pietrobelli & Roberta Rabellotti, 2010. "Global Value Chains Meet Innovation Systems : Are There Learning Opportunities for Developing Countries?," IDB Publications 11098, Inter-American Development Bank.
    10. Seamus Grimes, 2006. "Ireland's Emergence as a Centre for Internationally Traded Services," Regional Studies, Taylor & Francis Journals, vol. 40(9), pages 1041-1054.
    11. Athukorala, Prema–Chandra & Menon, Jayant, 2010. "Global Production Sharing, Trade Patterns, and Determinants of Trade Flows in East Asia," Working Papers on Regional Economic Integration 41, Asian Development Bank.
    12. Joana Almodovar & Aurora A.C. Teixeira, 2009. "Conceptualizing clusters through the lens of networks: a critical synthesis," FEP Working Papers 328, Universidade do Porto, Faculdade de Economia do Porto.
    13. Yamashita, Nobuaki, 2011. "Production sharing and trade flows: A comparative analysis of Japan and the US," Journal of Asian Economics, Elsevier, vol. 22(5), pages 383-397, October.
    14. Yusaf Akbar & Sonia Ferencikova, 2007. "Industrial Clustering and Global Value Chains in Central and Eastern Europe: Role of Multinational Enterprises in Industrial Upgrading," Prague Economic Papers, University of Economics, Prague, vol. 2007(3), pages 237-251.
    15. Franck Barry, 2013. "The Knowledge Economy, Economic Transformations and ICT: Regional Dynamics in the Deployment Phase. Case study: Southern and Eastern Ireland," JRC-IPTS Working Papers JRC83549, Institute for Prospective and Technological Studies, Joint Research Centre.
    16. Adelheid Holl & Rafael Pardo & Ruth Rama, 2010. "Just-in-Time Manufacturing Systems, Subcontracting and Geographic Proximity," Regional Studies, Taylor & Francis Journals, vol. 44(5), pages 519-533.
    17. Yeung, Henry Wai-chung & Liu, Weidong & Dicken, Peter, 2006. "Transnational corporations and network effects of a local manufacturing cluster in mobile telecommunications equipment in China," World Development, Elsevier, vol. 34(3), pages 520-540, March.
    18. Cheng, Liang-Chieh (Victor), 2011. "Assessing performance of utilizing organizational modularity to manage supply chains: Evidence in the US manufacturing sector," International Journal of Production Economics, Elsevier, vol. 131(2), pages 736-746, June.
    19. Lema, Rasmus & Quadros, Ruy & Schmitz, Hubert, 2012. "Shifts in Innovation Power to Brazil and India: Insights from the Auto and Software Industries," MPRA Paper 49591, University Library of Munich, Germany.
    20. Asheim, Bjørn & M. Bugge, Markus & Coenen, Lars & Herstad, Sverre, 2013. "What Does Evolutionary Economic Geography Bring To The Policy Table? Reconceptualising regional innovation systems," CIRCLE Electronic Working Papers 2013/5, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
    21. Vincent FRIGANT, 2013. "Une comparaison de l’internationalisation des chaînes d’approvisionnement automobiles allemande et française," Cahiers du GREThA 2013-09, Groupe de Recherche en Economie Théorique et Appliquée.

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