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, Spatial 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
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