The issue addressed in this paper concerns the emergence and dynamics of a regional cluster in the music industry. Whereas mainstream economic geography models explain agglomeration of existing economic activities, an evolutionary approach is necessary to understand the emergence of genuinely new clusters. Based on an empirical analysis of the major Swedish music cluster, it is shown how cognitive features, the institutional and organizational framework, as well as economic incentives, were interlinked in the process of cluster emergence. A multitude of forces thus coincided in time and space to support the emerging music cluster. A latent knowledge base, language skill and path-dependence all played a significant role. It is also shown how mobile and densely located agents, displaying a high degree of connectivity, together with external impulses through immigrants, contributed to the dynamics and re-vitalization of the Stockholm music cluster.
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Length: 39 pages Date of creation: 09 May 2005 Date of revision: Handle: RePEc:hhs:cesisp:0029
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Find related papers by JEL classification: D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
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Martin, Philippe & Ottaviano, Gianmarco I P, 2001.
"Growth and Agglomeration,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(4), pages 947-68, November.