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Industrial dynamics and economic geography: a survey

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  • Koen Frenken

    ()

  • Elena Cefis
  • Erik Stam

Abstract

We review the literature on clusters and their effects on industrial dynamics as well on various lifecycle dynamics underlying the process of cluster formation and cluster dynamics. The review shows that there is little evidence that clusters enhance firm growth and survival. In the absence of localization economies, the emergence of clusters is best understood as an evolutionary process of capability transmission between parents firms and their spinoffs. We discuss various future research avenues and call for theorising based on firm heterogeneity as well as empirical research based on common methodological standards.

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Paper provided by Eindhoven Center for Innovation Studies (ECIS) in its series Eindhoven Center for Innovation Studies (ECIS) working paper series with number 11-07.

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Date of creation: Oct 2011
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Handle: RePEc:dgr:tuecis:wpaper:1107

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Keywords: entry; exit; cluster; localization economies; lifecycle; firm heterogeneity;

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References

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