Agglomeration vs. Organizational Reproduction: The Molds Cluster in Portugal
AbstractThe mechanisms driving regional clustering are examined by exploring two theories: agglomeration economies and organizational reproduction. While organizational reproduction through spinoffs dominates clusters' early stages of growth, in clusters populated by small, vertically disintegrated firms accessing networks of external capabilities, agglomeration economies should emerge as a positive force. We examine just such a cluster: the molds industry in Portugal. Our empirical approach is twofold: first, we examine the early evolution (1946–1986) of the industry; second, we use detailed data on firms and founders for the period 1987–2009 to test the predictions of the two theories. We find that while organizational reproduction has played a major role in clustering, agglomeration economies recently have gained influence.
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Bibliographic InfoPaper provided by Utrecht University, Section of Economic Geography in its series Papers in Evolutionary Economic Geography (PEEG) with number 1222.
Length: 39 pages
Date of creation: Nov 2012
Date of revision: Nov 2012
Clusters; Spinoffs; Agglomeration Economies; Networks; External Capabilities;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-12-15 (All new papers)
- NEP-CSE-2012-12-15 (Economics of Strategic Management)
- NEP-GEO-2012-12-15 (Economic Geography)
- NEP-SBM-2012-12-15 (Small Business Management)
- NEP-URE-2012-12-15 (Urban & Real Estate Economics)
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