This paper investigates the theoretical backgrounds of the "cluster" and proposes a framework aiming at drawing the contour of cluster theory. The profundity of the notion of "clusters" is arguably conditional on the coherence of four fundamental issues associated with the concept: 1) the economic and social benefits that may accrue to firms when clustering or co-locating (the existence argument); 2) the diseconomies encountered when clustering exceeds certain geographical and sectoral thresholds (the extension argument); 3) the advantages obtained by exploiting intra- cluster synergies rather engaging in external interaction (the exchange argument); and, finally, 4) the possible erosion of economies and onset of diseconomies over the lifecycle of the cluster (the exhaustion argument). Each of these four issues is examined in terms of three relevant major theoretical frameworks that can be brought to bear on the cluster concept. The paper considers approaches based on the idea of externalities (illustrated by the Marshall's work on "Industrial districts"); on competitiveness issue (illustrated by Michael Porter’s theory of cluster growth); on a territorial perspective (illustrated by the GREMI approach). The analysis acknowledges the general shift in explanatory emphasis from considerations of static cost efficiency towards more dynamic interpretations that highlight the creation and use of knowledge as their pivotal theoretical element. By placing these changes within a common conceptual framework the paper shows how different theoretical solutions provide distinct points of departure for subsequent policy recommendations. Three distinctive groups of solutions are identified focussing respectively on local spillovers, on competitiveness and on the region and its development. The paper concludes by identifying areas of particular ambiguity where further theoretical work is most urgently needed.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number
05-09.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
Edward M. Bergman, 2007.
"Cluster Life-Cycles: An Emerging Synthesis,"
SRE-Disc
sre-disc-2007_04, Department of City and Regional Development, Vienna University of Economics and Business Administration.
[Downloadable!]