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The development of industrial clusters and public policy

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Author Info

  • Frank McDonald
  • Dimitrios Tsagdis
  • Qihai Huang

Abstract

This paper assesses the relationships between public policy and the development of industrial clusters. A conceptual model of the relationship between public policies and the development of industrial clusters is developed and tested using data from 43 European industrial clusters. The results indicate that most government policies have no significant impact on the growth of industrial clusters or for the development of co-operation within industrial clusters. There is limited evidence that packages of government policies that are specifically geared towards improving the local asset base are effective in overcoming obstacles to growth of industrial clusters. However, when age is used as a control variable the weak relationship between policy packages and growth of industrial clusters disappear. The results indicate that individual and packages of public policies are not strongly connected to either high levels of co-operation, or high growth in industrial clusters. Moreover, no clear evidence was found that high levels of co-operation were associated with growth in industrial districts. In the light of the failure to find clear-cut associations between public policies and the development of industrial clusters the paper outlines a research agenda to help to increase our understanding of these issues.

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File URL: http://hdl.handle.net/10.1080/08985620600884636
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Entrepreneurship & Regional Development.

Volume (Year): 18 (2006)
Issue (Month): 6 (November)
Pages: 525-542

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Handle: RePEc:taf:entreg:v:18:y:2006:i:6:p:525-542

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Cited by:
  1. Junichi Nishimura & Hiroyuki Okamuro, 2011. "R&D productivity and the organization of cluster policy: an empirical evaluation of the Industrial Cluster Project in Japan," The Journal of Technology Transfer, Springer, vol. 36(2), pages 117-144, April.
  2. Nishimura, Junichi & Okamuro, Hiroyuki, 2011. "Subsidy and networking: The effects of direct and indirect support programs of the cluster policy," Research Policy, Elsevier, vol. 40(5), pages 714-727, June.
  3. Junbo Yu & Mark Middleton & Randall Jackson, 2010. "Geography of Business Incubator Formation in the United States," Working Papers 201010, Regional Research Institute, West Virginia University.
  4. Okamuro, Hiroyuki & Nishimura, Junichi, 2011. "Management of Cluster Policies: Case Studies of Japanese, German, and French Bio-clusters," CEI Working Paper Series 2011-7, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.

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