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Beyond the Knowledge-Based Theory of the Geographic Cluster

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Author Info
Alexander Cole ()
Abstract

The knowledge-based theory of the geographic cluster represents a major attempt to re-conceptualize clusters, in essence arguing that the localization of firms in similar and related industries stimulates learning and innovation, giving a competitive advantage to clustered firms. This paper critically examines the knowledge-based theory the cluster, arguing that it has greatly overstated the advantages of co-location to firms and misidentified the mechanisms through which learning occurs in clusters. In particular, the theory is criticized on three points: the flexible, under-specified way that it defines its object of study; the focus on firms as an explanatory variable instead of more fundamental processes of resource accumulation; and the functionalist mode of theory that employs as an explanation. Ways to address of each of these issues are discussed. In a final section I suggest that the rather static notions of learning put forward in the knowledge-based theory of the cluster be replaced by a developmental theory of regional dynamics that focuses on both learning and structural transformation.

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File URL: http://econ.geo.uu.nl/peeg/peeg0708b.pdf
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Publisher Info
Paper provided by Utrecht University, Section of Economic Geography in its series Papers in Evolutionary Economic Geography (PEEG) with number 0708.

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Length: 34 pages
Date of creation: Nov 2007
Date of revision: Nov 2007
Handle: RePEc:egu:wpaper:0708

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Related research
Keywords: geographic cluster; localization; relatedness; knowledge-based theory;

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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.:
  1. Peter Maskell & Mark Lorenzen, 2003. "The Cluster as Market Organization," DRUID Working Papers 03-14, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
  2. Ann Markusen, 2003. "Fuzzy Concepts, Scanty Evidence, Policy Distance: The Case for Rigour and Policy Relevance in Critical Regional Studies," Regional Studies, Taylor and Francis Journals, vol. 37(6-7), pages 701-717, August. [Downloadable!] (restricted)
  3. Anders Malmberg & Peter Maskell, 2002. "The elusive concept of localization economies: towards a knowledge-based theory of spatial clustering," Environment and Planning A, Pion Ltd, London, vol. 34(3), pages 429-449, March. [Downloadable!] (restricted)
  4. Anders Malmberg & Peter Maskell, 2006. "Localized Learning Revisited," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 37(1), pages 1-18. [Downloadable!] (restricted)
    Other versions:
    • Anders Malmberg & Peter Maskell, 2005. "Localized Learning Revisited," DRUID Working Papers 05-19, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
  5. Marjolein Caniëls & Henny Romijn, 2003. "Agglomeration advantages and capability building in industrial clusters: the missing link," The Journal of Development Studies, Taylor and Francis Journals, vol. 39(3), pages 129-154, January. [Downloadable!] (restricted)
  6. Russo, Margherita, 1985. "Technical change and the industrial district: The role of interfirm relations in the growth and transformation of ceramic tile production in Italy," Research Policy, Elsevier, vol. 14(6), pages 329-343, December. [Downloadable!] (restricted)
  7. Ron Martin & Peter Sunley, 2003. "Deconstructing clusters: chaotic concept or policy panacea?," Journal of Economic Geography, Oxford University Press, vol. 3(1), pages 5-35, January.
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  8. Lissoni, Francesco, 2001. "Knowledge codification and the geography of innovation: the case of Brescia mechanical cluster," Research Policy, Elsevier, vol. 30(9), pages 1479-1500, December. [Downloadable!] (restricted)
  9. Young, Allyn A., 1928. "Increasing Returns and Economic Progress," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 38, pages 527-542. [Downloadable!]
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