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Coordination Failures, Cluster Theory and Entrepreneurship: A Critical View

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  • Glavan, Bogdan

Abstract

Development policy has been energized in the last decades by a number of contributions emphasizing a new positive role the state can and should play in fostering economic growth. The central pillar of this literature is Michael Porter and his theory of clusters. This paper intends to provide a refutation of the idea that coordination failures as manifested in the inability of clusters to emerge can serve as a ground for government intervention. It uses mainly Porter, Rodrik and Rodriguez-Clare thesis as an example of this approach and criticizes the claim that coordination externalities prevent the market process to allocate resources optimally

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 6033.

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Date of creation: May 2007
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Handle: RePEc:pra:mprapa:6033

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Keywords: coordination failure; cluster theory; development economics;

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  1. Rodrik, Dani, 2004. "Industrial Policy for the Twenty-First Century," Working Paper Series rwp04-047, Harvard University, John F. Kennedy School of Government.
  2. Adsera, Alicia & Ray, Debraj, 1998. " History and Coordination Failure," Journal of Economic Growth, Springer, vol. 3(3), pages 267-76, September.
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Cited by:
  1. Sipos-Gug Sebastian & Badulescu Alina-Daciana, 2013. "Entrepreneurial Activity In Romania - A Time Series Clustering Analysis At The Nuts3 Level," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 673-682, July.
  2. Steiner, Bodo & Ali, Jolene, 2009. "Regional food clusters and government support for clustering: Evidence for a ‘dynamic food innovation cluster’ in Alberta, Canada?," MPRA Paper 26251, University Library of Munich, Germany.
  3. Filippova, Irina & Mindlin, Yuri, 2013. "Кластерные Стратегии И Кластерные Инициативы: Перспективы И Факторы Эффективной Кластеризации
    [Cluster strategy an
    ," MPRA Paper 52765, University Library of Munich, Germany.
  4. Triyakshana Seshadri & Virgil Storr, 2010. "Knowledge problems associated with creating export zones," The Review of Austrian Economics, Springer, vol. 23(4), pages 347-366, December.

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