The rise and fall of industrial clusters: Technology and the life cycle of region
AbstractWhen a major technological innovation spreads out in both high-tech and middle/low-tech industries, new clusters appear, develop and grow at the expenses of "older" historical industrial sites. The literature has, under various labels, recognised three main stages of cluster development: an initial stage sparked by an initial exogenous, shock; a second stage driven by Marshall's (1920) agglomeration economies (labour market pooling, supply of intermediate goods and services and knowledge spillovers); a third stage in which the cluster either achieves a sectoral leadership or declines. The paper shows how different clusters' evolution (often told as separated stories) are part of a wider picture in which technological and spatial interactions between emerging and declining clusters play a decisive role. A final section draws some policy suggestions for public authorities and regional planners dealing with the development of an innovative cluster.
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Bibliographic InfoPaper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2004/6.
Length: 43 pages
Date of creation: 2004
Date of revision:
Agglomeration diseconomies; Agglomeration economies; Industrial clusters; Technological dynamics;
Find related papers by JEL classification:
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Production Analysis, and Firm Location
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
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.:
- Maggioni Mario, 2004. "High-tech Firms' Location and the Development of Innovative Industrial Clusters: A Survey of the Literature," Economia politica, Società editrice il Mulino, issue 1, pages 127-166.
- Michael S. Dahl & Christian Ø.R. Pedersen & Bent Dalum, 2003. "Entry by Spinoff in a High-tech Cluster," DRUID Working Papers 03-11, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Joseph Farrell and Garth Saloner., 1986. "Competition, Compatibility and Standards: The Economics of Horses, Penguins and Lemmings," Economics Working Papers 8610, University of California at Berkeley.
- 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.
- Mohammad Hosein Tavassoli, 2011. "A Comparative Investigation of Firmsâ€šÃ„Ã´ Innovative behaviors During Different Stages of the Cluster Life-Cycle (Cover study for PhD dissertation)," ERSA conference papers ersa10p1045, European Regional Science Association.
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