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Entrepreneurial Founder Effects in the Growth of Regional Clusters How Early Success is a Key Determinant

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Author Info

  • Michael S. Dahl
  • Christian Ø.R. Pedersen
  • Bent Dalum

Abstract

How can the growth of regional clusters be explained? This paper studies in great detail the growth of the wireless communication cluster in Northern Denmark. Unlike the dominant theories, we argue that initial success of the first firms are the main driving force behind the generation of new firms that eventually lead to the formation of clusters. The success of the first firms tends to generate spin-offs, which become successful themselves due to the background of the founders.

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File URL: http://www3.druid.dk/wp/20050018.pdf
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Bibliographic 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 05-18.

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Date of creation: 2005
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Handle: RePEc:aal:abbswp:05-18

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Web page: http://www.druid.dk/

Related research

Keywords: Agglomeration; Clusters; Spin-offs; Knowledge Diffusion;

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References

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  1. Olav Sorenson, 2003. "Social networks and industrial geography," Journal of Evolutionary Economics, Springer, Springer, vol. 13(5), pages 513-527, December.
  2. Cooper, Arnold C., 1985. "The role of incubator organizations in the founding of growth-oriented firms," Journal of Business Venturing, Elsevier, vol. 1(1), pages 75-86.
  3. S. Klepper & S. Sleeper, 2002. "Entry by Spinoffs," Papers on Economics and Evolution 2002-07, Philipps University Marburg, Department of Geography.
  4. Guido Buenstorf & Steven Klepper, 2009. "Heritage and Agglomeration: The Akron Tyre Cluster Revisited," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 119(537), pages 705-733, 04.
  5. Bent Dalum, 1995. "Local and global linkages the radiocommunications cluster in Northern Denmark," Industry and Innovation, Taylor & Francis Journals, Taylor & Francis Journals, vol. 2(2), pages 89-109.
  6. Agarwal, Rajshree & Echambadi, Raj & Franco, April M. & Sarkar, M. B., 2002. "Knowledge Transfer through Congenital Learning: Spin-Out Generation, Growth and Survival," Working Papers, University of Illinois at Urbana-Champaign, College of Business 02-0101, University of Illinois at Urbana-Champaign, College of Business.
  7. Arthur, W. Brian, 1990. "'Silicon Valley' locational clusters: when do increasing returns imply monopoly?," Mathematical Social Sciences, Elsevier, Elsevier, vol. 19(3), pages 235-251, June.
  8. Constance E. Helfat & Marvin B. Lieberman, 2002. "The birth of capabilities: market entry and the importance of pre-history," Industrial and Corporate Change, Oxford University Press, vol. 11(4), pages 725-760, August.
  9. Klepper, Steven, 2001. "Employee Startups in High-Tech Industries," Industrial and Corporate Change, Oxford University Press, vol. 10(3), pages 639-74, September.
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Citations

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Cited by:
  1. Østergaard, Christian R., 2009. "Knowledge flows through social networks in a cluster: Comparing university and industry links," Structural Change and Economic Dynamics, Elsevier, Elsevier, vol. 20(3), pages 196-210, September.
  2. Anne Otto, 2006. "The Role of New Firms for the Development of Clusters," ERSA conference papers ersa06p275, European Regional Science Association.
  3. Christian R. Østergaard, 2007. "Knowledge Flows Through Social Networks in a Cluster Interfirm versus University-Industry Contacts," DRUID Working Papers, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies 07-19, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.

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