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Why do some places succeed when others decline? A social interaction model of cluster viability

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  • Raphael Suire
  • Jérome Vicente

Abstract

One of the most convincing explanations papers generally provide concerning clusters in knowledge-based economies refers to the geographically bounded dimension of knowledge spillovers. Here we shall underline that location decision externalities precede local knowledge spillovers in the explanation of cluster aggregate efficiency, which thus requires us to focus on the sequential process of location and the nature of interdependences in location decision-making. To that end, we mean to associate cluster emergence with the formation of locational norms, and to study the critical parameters of their stability. These parameters relate to the type of decision externalities among more or less cognitively distant firms, which influences the weight and the resulting ambivalent role of knowledge spillovers at the aggregate level of clusters. We suggest two theoretical propositions which we test within a simple and general norm location dynamics modeling framework. We then proceed to discuss the results so obtained by comparing them with an emerging related literature based on the life cycle and viability of clusters

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Bibliographic Info

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

Volume (Year): 9 (2009)
Issue (Month): 3 (May)
Pages: 381-404

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Handle: RePEc:oup:jecgeo:v:9:y:2009:i:3:p:381-404

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References

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  1. Jérome VICENTE (LEREPS-GRES) & Yan Dalla PRIA (CSO – CNRS) & Raphaël SUIRE (CREM – CNRS), 2006. "The Ambivalent Role of Mimetic Behaviors in Proximity Dynamics: Evidences on the French “Silicon Sentier”," Cahiers du GRES 2006-02, Groupement de Recherches Economiques et Sociales.
  2. Breschi, Stefano & Lissoni, Francesco, 2000. "Knowledge Spillovers And Local Innovation Systems: A Critical Survey," ERSA conference papers ersa00p362, European Regional Science Association.
  3. Ron A. Boschma & Jan G. Lambooy, 1999. "Evolutionary economics and economic geography," Journal of Evolutionary Economics, Springer, vol. 9(4), pages 411-429.
  4. Spence, Michael, 1974. "Competitive and optimal responses to signals: An analysis of efficiency and distribution," Journal of Economic Theory, Elsevier, vol. 7(3), pages 296-332, March.
  5. Sorenson, Olav & Rivkin, Jan W. & Fleming, Lee, 2006. "Complexity, networks and knowledge flow," Research Policy, Elsevier, vol. 35(7), pages 994-1017, September.
  6. Sushil Bikhchandani & David Hirshleifer & Ivo Welch, 1998. "Learning from the Behavior of Others: Conformity, Fads, and Informational Cascades," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 151-170, Summer.
  7. Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
  8. Quah, Danny, 1999. "Internet Cluster Emergence," CEPR Discussion Papers 2293, C.E.P.R. Discussion Papers.
  9. Anne ter Wal & Ron A. Boschma, 2007. "Co-evolution of firms, industries and networks in space," Papers in Evolutionary Economic Geography (PEEG) 0707, Utrecht University, Section of Economic Geography, revised Aug 2007.
  10. Charles F. Manski, 2000. "Economic Analysis of Social Interactions," NBER Working Papers 7580, National Bureau of Economic Research, Inc.
  11. Stephen Appold, 2005. "Location Patterns of US Industrial Research: Mimetic Isomorphism and the Emergence of Geographic Charisma," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 17-39.
  12. Aoki, Masahiko & Takizawa, Hirokazu, 2002. "Information, Incentives, and Option Value: The Silicon Valley Model," Journal of Comparative Economics, Elsevier, vol. 30(4), pages 759-786, December.
  13. Christian Longhi, 1999. "Networks, Collective Learning and Technology Development in Innovative High Technology Regions: The Case of Sophia-Antipolis," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 333-342.
  14. Schelling, Thomas C, 1969. "Models of Segregation," American Economic Review, American Economic Association, vol. 59(2), pages 488-93, May.
  15. Geroski, Paul A, 1999. "Models of Technology Diffusion," CEPR Discussion Papers 2146, C.E.P.R. Discussion Papers.
  16. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-40, June.
  17. Ron Martin & Peter Sunley, 2002. "Deconstructing Clusters: Chaotic Concept or Policy Panacea," ESRC Centre for Business Research - Working Papers wp244, ESRC Centre for Business Research.
  18. Cristiano Antonelli, 2006. "The Business Governance of Localized Knowledge: An Information Economics Approach for the Economics of Knowledge," Industry and Innovation, Taylor & Francis Journals, vol. 13(3), pages 227-261.
  19. Ron Boschma & Koen Frenken, 2004. "Why is Economic Geography not an Evolutionary Science?," ERSA conference papers ersa04p393, European Regional Science Association.
  20. Antonelli, Cristiano, 2005. "The Governance Of Localized Knowledge: An Information Economics Approach For The Economics Of Knowledge," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200502, University of Turin.
  21. Ron Boschma & Ron Martin, 2007. "Editorial: Constructing an evolutionary economic geography," Journal of Economic Geography, Oxford University Press, vol. 7(5), pages 537-548, September.
  22. Ron A. Boschma & Koen Frenken, 2006. "Why is economic geography not an evolutionary science? Towards an evolutionary economic geography," Journal of Economic Geography, Oxford University Press, vol. 6(3), pages 273-302, June.
  23. Jerome Vicente & Rapha�l Suire, 2007. "Informational Cascades versus Network Externalities in Locational Choice: Evidence of 'ICT Clusters' Formation and Stability," Regional Studies, Taylor & Francis Journals, vol. 41(2), pages 173-184.
  24. Cooke, Philip, 2001. "Regional Innovation Systems, Clusters, and the Knowledge Economy," Industrial and Corporate Change, Oxford University Press, vol. 10(4), pages 945-74, December.
  25. Ron Boschma & Simona Iammarino, 2007. "Related variety and regional growth in Italy," SPRU Working Paper Series 162, SPRU - Science and Technology Policy Research, University of Sussex.
  26. Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
  27. Danny Quah, 2000. "Internet Cluster Emergence," CEP Discussion Papers dp0441, Centre for Economic Performance, LSE.
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Citations

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Cited by:
  1. Ron Boschma & KOen Frenken, 2010. "The emerging empirics of evolutionary economic geography," Eindhoven Center for Innovation Studies (ECIS) working paper series 10-10, Eindhoven Center for Innovation Studies (ECIS), revised Nov 2010.
  2. Pierre-Alexandre Balland & Mathijs De Vaan & Ron Boschma, 2013. "The dynamics of interfirm networks along the industry life cycle: The case of the global video game industry, 1987--2007," Journal of Economic Geography, Oxford University Press, vol. 13(5), pages 741-765, September.
  3. Ron Boschma & Dirk Fornahl, 2011. "Cluster Evolution and a Roadmap for Future Research," Papers in Evolutionary Economic Geography (PEEG) 1117, Utrecht University, Section of Economic Geography, revised Aug 2011.
  4. Elisabet Viladecans-Marsal & Josep-Maria Arauzo-Carod, 2012. "Can a knowledge-based cluster be created? The case of the Barcelona 22@ district," Papers in Regional Science, Wiley Blackwell, vol. 91(2), pages 377-400, 06.
  5. Marius Chevallier & Julien Dellier & Gaël Plumecocq & Frédéric Richard, 2013. "Dynamiques et structuration des circuits courts agroalimentaires en Limousin : distance institutionnelle, proximités spatiale et relationnelle," Working Papers hal-00921140, HAL.
  6. Joan Crespo & Raphaël Suire & Jérôme Vicente, 2013. "Network structural properties for cluster long run dynamics. Evidence from collaborative R&D networks in the European mobile phone industry," Papers in Evolutionary Economic Geography (PEEG) 1323, Utrecht University, Section of Economic Geography, revised Nov 2013.
  7. Sylvain Amisse & Paul Muller & Caroline Hussler & Patrick Rondé, 2011. "Do birds of a feather flock together? Proximities and inter-clusters network," ERSA conference papers ersa11p1896, European Regional Science Association.
  8. Manuela Presutti & Cristina Boari & Antonio Majocchi, 2013. "Inter-organizational geographical proximity and local start-ups' knowledge acquisition: a contingency approach," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 25(5-6), pages 446-467, June.

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