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Clustering the Winners: the French Policy of Competitiveness Clusters

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  • Lionel Fontagné
  • Pamina Koenig
  • Florian Mayneris
  • Sandra Poncet

Abstract

In 2005 the French government launched a policy of competitiveness clusters, giving subsidies for innovative projects managed locally and collectively by firms, research centers and universities. This paper proposes an ex-ante analysis of the outcome of the selection process that took place before the implementation of the subsidies program, in order to assess whether the policy ended up in choosing winners or losers. We first ask how the clusters have been selected, and then focus on the selection of firms within the clusters, using export and productivity as a measure of performance. Our main conclusion is that public authorities have chosen the winners during the two-step selection procedure. Export premium, beyond what individual characteristics would predict, is however most visible within the category of clusters having no international ambition, where heterogeneity among firms is the largest.

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Bibliographic Info

Paper provided by CEPII research center in its series Working Papers with number 2010-18.

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Date of creation: Sep 2010
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Handle: RePEc:cii:cepidt:2010-18

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Keywords: Competitiveness; Clusters; International Trade; Firm selection;

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References

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  1. Zvi Griliches & Jacques Mairesse, 1995. "Production Functions: The Search for Identification," NBER Working Papers 5067, National Bureau of Economic Research, Inc.
  2. Philippe Martin & Thierry Mayer & Florian Mayneris, 2011. "Public support to clusters. A firm level study of french 'local productive systems'," Sciences Po publications info:hdl:2441/c8dmi8nm4pd, Sciences Po.
  3. Richard E. Baldwin & Frédéric Robert-Nicoud, 2007. "Entry and Asymmetric Lobbying: Why Governments Pick Losers," Journal of the European Economic Association, MIT Press, vol. 5(5), pages 1064-1093, 09.
  4. Michael E. Porter, 2000. "Location, Competition, and Economic Development: Local Clusters in a Global Economy," Economic Development Quarterly, , vol. 14(1), pages 15-34, February.
  5. Jaffe, A.B. & Trajtenberg, M., 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," Papers 14-92, Tel Aviv.
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Cited by:
  1. Uwe Cantner & Holger Graf & Susanne Hinzmann, 2013. "Policy induced innovation networks: the case of the German "Leading-Edge Cluster competition"," Jena Economic Research Papers 2013-008, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  2. Lionel Fontagné & Matthieu Crozet, 2010. "L'internationalisation des entreprises : une analyse microéconomique de la mondialisation," Économie et Statistique, Programme National Persée, vol. 435(1), pages 3-12.
  3. Christian Schröder, 2014. "Dynamics in ICT cooperation networks in selected German ICT clusters," International Economics and Economic Policy, Springer, vol. 11(1), pages 197-230, February.

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