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Co-evolution of firms, industries and networks in space

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  • Anne ter Wal

    ()

  • Ron A. Boschma

    ()

Abstract

The cluster literature suffers from a number of shortcomings: (1) by and large, cluster studies do not take into account that firms in a cluster are heterogeneous in terms of capabilities; (2) cluster studies tend to overemphasize the importance of place and geographical proximity and underestimate the role of networks which are, by definition, a-spatial entities; (3) most, if not all cluster studies have a static nature, and do not address questions like the origins and evolution of clusters. Our aim is to overcome these shortcomings and propose a theoretical framework on the evolution of clusters. Bringing together bodies of literature on clusters, industrial dynamics, the evolutionary theory of the firm and network theory, we describe how clusters co-evolve with: (1) the industry they adhere to; (2) the (dynamic) capabilities of the firms they contain; and (3) the industry-wide knowledge network they are part of. Based on this framework, we believe the analysis of cluster evolution provides a promising research agenda in evolutionary economic geography for the years to come.

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File URL: http://econ.geo.uu.nl/peeg/peeg0707.pdf
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Bibliographic Info

Paper provided by Utrecht University, Section of Economic Geography in its series Papers in Evolutionary Economic Geography (PEEG) with number 0707.

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Length: 19 pages
Date of creation: Aug 2007
Date of revision: Aug 2007
Handle: RePEc:egu:wpaper:0707

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Keywords: cluster evolution; network dynamics; industrial dynamics; co-evolution; evolutionary economic geography;

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References

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  1. Ron A. Boschma & Jan G. Lambooy, 1999. "Evolutionary economics and economic geography," Journal of Evolutionary Economics, Springer, vol. 9(4), pages 411-429.
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Citations

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Cited by:
  1. Joan Crespo & Raphaël Suire & Jérôme Vicente, 2013. "Network structural properties for cluster long run dynamics. Evidence from collaborative R&D networks in the European mobile phone industry," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201336, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  2. Muhamed Kudic & Andreas Pyka & Jutta Günther, 2012. "Determinants of Evolutionary Change Processes in Innovation Networks – Empirical Evidence from the German Laser Industry," IWH Discussion Papers 7, Halle Institute for Economic Research.
  3. Anne L.J. Ter Wal, 2011. "The Dynamics of the Inventor Network in German Biotechnology: Geographical Proximity versus Triadic Closure," Papers in Evolutionary Economic Geography (PEEG) 1102, Utrecht University, Section of Economic Geography, revised Jan 2011.
  4. 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.
  5. Ron Martin & Peter Sunley, 2014. "Towards a Developmental Turn in Evolutionary Economic Geography?," Papers in Evolutionary Economic Geography (PEEG) 1401, Utrecht University, Section of Economic Geography, revised Jan 2014.
  6. Pierre-Alexandre Balland & Mathijs de Vaan & Ron Boschma, 2011. "The Dynamics of Interfirm Networks along the Industry Life Cycle: The Case of the Global Video Games Industry 1987-2007," Papers in Evolutionary Economic Geography (PEEG) 1114, Utrecht University, Section of Economic Geography, revised Aug 2011.
  7. Ron Martin & Peter Sunley, 2011. "Conceptualising Cluster Evolution: Beyond the Life-Cycle Model?," Papers in Evolutionary Economic Geography (PEEG) 1112, Utrecht University, Section of Economic Geography, revised Jul 2011.
  8. Giulio Cainelli & Sandro Montresor & Giuseppe Vittucci Marzetti, 2012. "Production and financial linkages in inter-firm networks: structural variety, risk-sharing and resilience," Journal of Evolutionary Economics, Springer, vol. 22(4), pages 711-734, September.
  9. Anne L.J. Ter Wal, 2013. "Cluster Emergence and Network Evolution: A Longitudinal Analysis of the Inventor Network in Sophia-Antipolis," Regional Studies, Taylor & Francis Journals, vol. 47(5), pages 651-668, May.
  10. T. Buchmann & D. Hain & Muhamed Kudic & M. Müller, 2014. "Exploring the Evolution of Innovation Networks in Science-driven and Scale-intensive Industries: New Evidence from a Stochastic Actor-based Approach," IWH Discussion Papers 1, Halle Institute for Economic Research.
  11. Marc-Hubert DEPRET & Abdelillah HAMDOUCH, 2011. "Multiscalar Clusters And Networks As The Foundations Of Innovation Dynamics In The Biopharmaceutical Industry," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 33, pages 227-268.
  12. Gunther Maier & Michaela Trippl, 2012. "The Pitfalls and Booby Traps of Cluster Policy," SRE-Disc sre-disc-2012_01, Institute for the Environment and Regional Development, Department of Socioeconomics, Vienna University of Economics and Business.
  13. Sidonia von Proff & Thomas Brenner, 2011. "The Dynamics of Inter-Regional Collaboration – An Analysis of Co-Patenting," Working Papers on Innovation and Space 2011-06, Philipps University Marburg, Department of Geography.
  14. Ron Boschma & Matté Hartog, 2013. "Merger and acquisition activity as driver of spatial clustering: the spatial evolution of the Dutch banking industry, 1850-1993," Papers in Evolutionary Economic Geography (PEEG) 1315, Utrecht University, Section of Economic Geography, revised Sep 2013.
  15. Peng-Fei Li & Harald Bathelt & Jici Wang, 2012. "Network dynamics and cluster evolution: changing trajectories of the aluminium extrusion industry in Dali, China," Journal of Economic Geography, Oxford University Press, vol. 12(1), pages 127-155, January.

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