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Cluster Life Cycles - Dimensions and Rationales of Cluster Development

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  • Max-Peter Menzel

    ()
    (University of Bern, Institute of Geography, Economic Geography and Regional Studies)

  • Dirk Fornahl

    ()
    (University of Karlsruhe (TH), Institute for Economic Policy Research (IWW), and Max Planck Institute of Economics, Jena)

Abstract

We present a model that explains how a cluster moves through a life cycle and why this movement differs from the industry life cycle. The model is based on three key processes: the changing heterogeneity in the cluster describes the movement of the cluster through the life cycle; the geographical absorptive capacity enables clustered companies to take advantage of a larger diversity of knowledge and the stronger convergence of clustered companies compared to non-clustered companies results in a reduction of heterogeneity. We apply these processes to four stages of the cluster life cycle: emergence, growth, sustainment and decline.

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Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2007-076.

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Date of creation: 30 Oct 2007
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Handle: RePEc:jrp:jrpwrp:2007-076

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Keywords: cluster evolution; life cycle; heterogeneity;

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Cited by:
  1. Max-Peter Menzel, 2008. "Dynamic Proximities – Changing Relations by Creating and Bridging Distances," Papers in Evolutionary Economic Geography (PEEG) 0816, Utrecht University, Section of Economic Geography, revised Oct 2008.
  2. repec:hig:wpaper:wp-brp-11-sti-2013 is not listed on IDEAS
  3. Mohammad Hosein 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.
  4. Tamás Sebestyén, 2010. "Innovation and Diversity in a Dynamic Knowledge Network," Working Papers 2010/1, University of Pécs, Department of Economics and Regional Studies, revised Mar 2010.
  5. Kutsenko, E., 2012. "Path Dependence in Spatial Distribution of Economic Activity: Bad News for Empiric Research of Agglomeration Effects," Journal of the New Economic Association, New Economic Association, vol. 14(2), pages 10-26.
  6. Jérôme Vicente & Pierre-Alexandre Balland & Olivier Brossard, 2008. "Getting Into Networks and Clusters: Evidence on the GNSS composite knowledge process in (and from) Midi-Pyrénées," Papers in Evolutionary Economic Geography (PEEG) 0815, Utrecht University, Section of Economic Geography, revised Oct 2008.
  7. Gil Avnimelech & Morris Teubal, 2008. "Evolutionary targeting," Journal of Evolutionary Economics, Springer, vol. 18(2), pages 151-166, April.
  8. Evgeniy Kutsenko, 2013. "Cluster policy in Russia: similarity and uniqueness," ERSA conference papers ersa13p331, European Regional Science Association.
  9. Evgeniy Kutsenko & Dirk Meissner, 2013. "Key Features Of The First Phase Of The National Cluster Program In Russia," HSE Working papers WP BRP 11/STI/2013, National Research University Higher School of Economics.
  10. 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.
  11. Raphael Suire & Jerome Vicente, 2011. "Clusters for life or life cycles of clusters: from declining to resilient clusters," ERSA conference papers ersa10p56, European Regional Science Association.

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