IDEAS home Printed from https://ideas.repec.org/p/egu/wpaper/0708.html
   My bibliography  Save this paper

Beyond the Knowledge-Based Theory of the Geographic Cluster

Author

Listed:
  • 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.

Suggested Citation

  • Alexander Cole, 2007. "Beyond the Knowledge-Based Theory of the Geographic Cluster," Papers in Evolutionary Economic Geography (PEEG) 0708, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2007.
    • Handle: RePEc:egu:wpaper:0708
    as

    Download full text from publisher

    File URL: http://econ.geo.uu.nl/peeg/peeg0708b.pdf
    File Function: Version November 2007
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    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.
    2. Peter Maskell, 2001. "The Firm in Economic Geography," Economic Geography, Taylor & Francis Journals, vol. 77(4), pages 329-344, October.
    3. Ann Markusen, 2003. "Fuzzy Concepts, Scanty Evidence, Policy Distance: The Case for Rigour and Policy Relevance in Critical Regional Studies," Regional Studies, Taylor & Francis Journals, vol. 37(6-7), pages 701-717.
    4. Anders Malmberg & Peter Maskell, 2006. "Localized Learning Revisited," Growth and Change, Wiley Blackwell, vol. 37(1), pages 1-18, March.
    5. Ann Markusen, 1996. "Sticky Places in Slippery Space: A Typology of Industrial Districts," Economic Geography, Taylor & Francis Journals, vol. 72(3), pages 293-313, July.
    6. Sidney G. Winter, 1964. "Economic "Natural Selection" and the Theory of the Firm," LEM Chapters Series, in: Yale Economic Essays, pages 225-272, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    7. 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.
    8. 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.
    9. Marjolein Caniëls & Henny Romijn, 2003. "Agglomeration Advantages and Capability Building in Industrial Clusters: The Missing Link," Journal of Development Studies, Taylor & Francis Journals, vol. 39(3), pages 129-154.
    10. 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.
    11. Ian R. Gordon & Philip McCann, 2000. "Industrial Clusters: Complexes, Agglomeration and/or Social Networks?," Urban Studies, Urban Studies Journal Limited, vol. 37(3), pages 513-532, March.
    12. Lars Håkanson, 2005. "Epistemic Communities and Cluster Dynamics: On the Role of Knowledge in Industrial Districts," Industry and Innovation, Taylor & Francis Journals, vol. 12(4), pages 433-463.
    13. Mark Lazerson & Gianni Lorenzoni, 1999. "Resisting Organizational Inertia: The Evolution of Industrial Districts," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 3(4), pages 361-377, December.
    14. 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.
    15. Anders Malmberg & Dominic Power, 2005. "(How) Do (Firms in) Clusters Create Knowledge?," Industry and Innovation, Taylor & Francis Journals, vol. 12(4), pages 409-431.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Argentino Pessoa, 2014. "Agglomeration and regional growth policy: externalities versus comparative advantages," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 1-27, August.
    2. Harold (Hal) Wolman & Diana Hincapie, 2015. "Clusters and Cluster-Based Development Policy," Economic Development Quarterly, , vol. 29(2), pages 135-149, May.
    3. Nicholas A. Phelps & Miguel Atienza & Martin Arias, 2015. "Encore for the Enclave: The Changing Nature of the Industry Enclave with Illustrations from the Mining Industry in Chile," Economic Geography, Taylor & Francis Journals, vol. 91(2), pages 119-146, April.
    4. Henry Wai‐Chung Yeung, 2009. "Transnational Corporations, Global Production Networks, and Urban and Regional Development: A Geographer's Perspective on Multinational Enterprises and the Global Economy," Growth and Change, Wiley Blackwell, vol. 40(2), pages 197-226, June.
    5. Thomas Brenner & André Mühlig, 2007. "Factors and Mechanisms Causing the Emergence of Local Industrial Clusters - A Meta-Study of 159 Cases," Papers on Economics and Evolution 2007-23, Philipps University Marburg, Department of Geography.
    6. Yeung, Henry Wai-chung & Liu, Weidong & Dicken, Peter, 2006. "Transnational corporations and network effects of a local manufacturing cluster in mobile telecommunications equipment in China," World Development, Elsevier, vol. 34(3), pages 520-540, March.
    7. David Hojman, 2005. "Network Learning, Principal-Agent Conflict, and Award-Winning Wine-Making in Chile's Colchagua Valley," Working Papers 200512, University of Liverpool, Department of Economics.
    8. Sara Cruz & Aurora Teixeira, 2010. "The Evolution of the Cluster Literature: Shedding Light on the Regional Studies-Regional Science Debate," Regional Studies, Taylor & Francis Journals, vol. 44(9), pages 1263-1288.
    9. Cassandra C Wang & George C S Lin & Guicai Li, 2010. "Industrial Clustering and Technological Innovation in China: New Evidence from the ICT Industry in Shenzhen," Environment and Planning A, , vol. 42(8), pages 1987-2010, August.
    10. Sam Tavassoli, 2011. "A Comparative Investigation of Firms' Innovative behaviors During Different Stages of the Cluster Life-Cycle (Cover study for PhD dissertation)," ERSA conference papers ersa10p1045, European Regional Science Association.
    11. Rani J Dang & Karine Roux & Christian Longhi & Damien Talbot & Catherine Thomas, 2014. "Territorial Innovation Dynamics: A Knowledge Based Perspective," Post-Print hal-02385361, HAL.
    12. Mirko Titze & Matthias Brachert & Alexander Kubis, 2011. "Local and regional knowledge sources of industrial clusters - methodical aspects in a multidimensional framework for cluster identification," ERSA conference papers ersa10p709, European Regional Science Association.
    13. Heike Mayer, 2013. "Spinoff regions: entrepreneurial emergence and regional development in second-tier high-technology regions – observations from the Oregon and Idaho electronics sectors," Chapters, in: Frank Giarratani & Geoffrey J.D. Hewings & Philip McCann (ed.), Handbook of Industry Studies and Economic Geography, chapter 8, pages 207-229, Edward Elgar Publishing.
    14. Vasileios Kyriazis & Theodore Metaxas, 2023. "Markusen’s Typology with a “European” Twist, the Examples of the French Aerospace Valley Cluster and the Andalucia Aerospace Cluster," World, MDPI, vol. 4(1), pages 1-17, March.
    15. Eisingerich, Andreas B. & Bell, Simon J. & Tracey, Paul, 2010. "How can clusters sustain performance? The role of network strength, network openness, and environmental uncertainty," Research Policy, Elsevier, vol. 39(2), pages 239-253, March.
    16. Iammarino, Simona & McCann, Philip, 2006. "The structure and evolution of industrial clusters: Transactions, technology and knowledge spillovers," Research Policy, Elsevier, vol. 35(7), pages 1018-1036, September.
    17. Alex Burfitt & Stewart Macneill, 2008. "The Challenges of Pursuing Cluster Policy in the Congested State," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 32(2), pages 492-505, June.
    18. Solène Chesnel & Jérémie Molho & Florian Raimbeau & Hélène Morteau & Dominique Sagot-Duvauroux, 2013. "Les clusters ou districts industriels du domaine culturel et médiatique : revue du savoir économique et questionnement," Working Papers hal-02502563, HAL.
    19. Ross Brown & Colin Mason, 2017. "Looking inside the spiky bits: a critical review and conceptualisation of entrepreneurial ecosystems," Small Business Economics, Springer, vol. 49(1), pages 11-30, June.
    20. Antonio Vazquez-Barquero, 2006. "Emergence and Transformation of Clusters and Milieus," ERSA conference papers ersa06p648, European Regional Science Association.

    More about this item

    Keywords

    geographic cluster; localization; relatedness; knowledge-based theory;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:egu:wpaper:0708. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/deguunl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.