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Informational Cascades versus Network Externalities in Locational Choice: Evidence of 'ICT Clusters' Formation and Stability


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  • Jerome Vicente
  • Rapha�l Suire


Vicente J. and Suire R. (2007) Informational cascades versus network externalities in locational choice: evidence of 'ICT clusters' formation and stability. Regional Studies 41, 1-12. The paper provides new insights into the mechanisms of 'information and communication technology (ICT) clusters' formation. The basic assumption is that clusters can be explained as the result of a locational norm, i.e. as a convergence in locational choices resulting from both mimetic behaviours and sequential and cumulative interactions. Informational externalities (and observational learning) are distinguished from network externalities (and interactive learning) in location processes in order to compare the respective economic properties of stability (and proximity) of locational cascades and locational clusters. It is shown as a result that informational effects play a major role in the formation of ICT clusters, whereas network effects are the significant condition of their stability. Silicon Valley and Silicon Sentier (Paris) are briefly studied and compared in order to illustrate the theoretical purpose. Vicente J. et Suire R. (2007) Les flots d'information contre les effets externes de reseau dans le choix d'emplacement: des preuves de l'etablissement et de la stabilite des �grappes TIC�. Regional Studies 41, 1-12. Cet article cherche a fournir de nouveaux apercus sur les mecanismes qui permettent l'etablissement des �grappes TIC�. La supposition fondamentale est la suivante: les grappes s'expliquent par une norme de localisation, c'est-a-dire une convergence des choix de localisation qui resulte a la fois des comportements mimetiques et des interactions sequentielles cumulees. On distingue entre les effets externes d'information (et l'apprentissage observe) et les effets externes de reseau (et de l'apprentissage interactif) dans les processus de localisation afin de comparer les proprietes economiques respectives de la stabilite (et de la proximite) des flots de localisation et des grappes de localisation. Par la suite, on cherche a montrer que les effets information jouent un role majeur dans l'etablissement des grappes TIC, tandis que les effets de reseau sont la condition prealable de leur stabilite. On etudie et compare brievement la Silicon Valley et le Silicon Sentier (a Paris) pour illustrer l'objectif theorique de l'etude. Grappes TIC Flots d'information Effets externes de reseau Stabilite Proximite Vicente J. und Suire R. (2007) Informationskaskaden im Vergleich zu Netwerk-Externalitaten bei der Standortwahl: Belege zur Bildung und Stabilitat von 'ICT-Clustern'. Regional Studies 41, 1-12. Dieser Beitrag bietet neue Einblicke in die Mechanismen bei der Bildung von ICT-Clustern. Die Grundannahme lautet, dass sich Cluster als Ergebnis einer Standortnorm erklaren lassen, d. h. als Konvergenz von Standortwahlen, die durch mimetisches Verhalten sowie durch sequentielle und kumulative Interaktionen verursacht wird. Bei den Standortprozessen unterscheiden wir zwischen informationellen Externalitaten (und beobachtendem Lernen) und Netwerk-Externalitaten (und interaktivem Lernen), um die jeweiligen okonomischen Eigenschaften der Stabilitat (und Nahe) der Standortkaskaden und Standortcluster miteinander zu vergleichen. Wir zeigen als Ergebnis, dass die informationellen Wirkungen eine wichtige Rolle bei der Bildung von ICT-Clustern spielen, wahrend die Netzwerk-Effekte eine wesentliche Vorbedingung fur deren Stabilitat darstellen. Zur Illustration unserer theoretischen Annahme werden die Beispiele von Silicon Valley und Silicon Sentier (Paris) kurz untersucht und verglichen. ICT-Cluster Informationskaskaden Netwerk-Externalitaten Stabilitat Nahe Vicente J. y Suire R. (2007) Cascadas de informacion frente a efectos externos de la red en la opcion de ubicacion: Ejemplos de la formacion y la estabilidad de las 'agrupaciones de TIC'. Regional Studies 41, 1-12. En este articulo se aportan nuevas perspectivas de los mecanismos de la formacion de agrupaciones de TIC (Tecnologias de la Informacion y la Comunicacion). Basicamente suponemos que existen agrupaciones que se podrian considerar el resultado de una norma de ubicacion, es decir una convergencia en opciones de ubicacion causada por conductas mimeticas e interacciones secuenciales y acumulativas. Hacemos una distincion entre los efectos externos de informacion (y el aprendizaje de observacion) y los efectos externos de la red (y el aprendizaje interactivo) en los procesos de ubicacion para poder cotejar las respectivas propiedades economicas de estabilidad (y proximidad) de las cascadas y las agrupaciones de ubicacion. Como resultado, mostramos que los efectos de informacion desempenan una funcion principal en la formacion de las agrupaciones de las TIC, mientras que los efectos de las redes son la condicion critica de su estabilidad. Analizamos y comparamos brevemente Silicon Valley y Silicon Sentier (Paris) para ilustrar nuestra finalidad teoretica. Agrupaciones de TIC Cascadas de informacion Efectos externos de la red Estabilidad Proximidades

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Bibliographic Info

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

Volume (Year): 41 (2007)
Issue (Month): 2 ()
Pages: 173-184

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Handle: RePEc:taf:regstd:v:41:y:2007:i:2:p:173-184

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Keywords: Information and communication technology (ICT) clusters; Informational cascades; Network externalities; Stability; Proximities;


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Cited by:
  1. Raphaël Suire & Jérome Vicente & Yan Dala Pria, 2006. "Why some clusters succeed whereas others decline ? Modelling the ambivalent stability properties of clusters," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 200619, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  2. Marie Coris, 2008. "Proximités et délocalisations : le cas du logiciel," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(3), pages 361-380.
  3. Jérôme Vicente & Raphaël Suire, 2009. "Why Do Some Places Succeed When Others Decline? A Social Interaction Model of Cluster Viability," Post-Print hal-00418539, HAL.
  4. Christophe CARRINCAZEAUX (GREThA, CNRS, UMR 5113) & Marie CORIS (GREThA, CNRS, UMR 5113), 2012. "The Decision-Making Process of Relocations: What, Where, How and Why?," Cahiers du GREThA 2012-04, Groupe de Recherche en Economie Théorique et Appliquée.
  5. Pierre-Alexandre Balland & Ron Boschma & Koen Frenken, 2013. "Proximity and Innovation: From Statics to Dynamics," Papers in Evolutionary Economic Geography (PEEG) 1314, Utrecht University, Section of Economic Geography, revised Aug 2013.
  6. Antonelli, Cristiano, 2008. "Pecuniary Externalities: the Convergence of Directed Technological Change and the Emergence of Innovation Systems," 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 200807, University of Turin.
  7. Marie CORIS (GREThA-GRES), 2008. "The coordination issues of relocations: How proximity still matters in location of software development activities\r\n," Cahiers du GRES 2008-03, Groupement de Recherches Economiques et Sociales.
  8. Raphael Suire & Jerome Vicente, 2011. "Clusters for life or life cycles of clusters: from declining to resilient clusters," ERSA conference papers ersa10p56, European Regional Science Association.
  9. Frank Lasch & Frank Robert & Frédéric Roy, 2013. "Regional determinants of ICT new firm formation," Small Business Economics, Springer, vol. 40(3), pages 671-686, April.
  10. Sylvie Occelli & Alessandro Sciullo, 2011. "Revisting The Relationships Between Broadband Diffusion And Regional System Development: A Primer," ERSA conference papers ersa11p702, European Regional Science Association.


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