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The Structure and Evolution of Industrial Clusters: Transactions, Technology and Knowledge Spillovers

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In this paper we investigate the relationship between location patterns, innovation processes and industrial clusters. In order to do this we extend a transactions costs-based classification of industrial clusters into a knowledge-based taxonomy of clusters, along the lines suggested by a critical revision of the main assumptions underlying most of the existing literature on spatially defined clusters. Our arguments show that the transactions costs approach and the innovation and technological change framework are broadly consistent, and that real insights into the microfoundations, nature, and evolution of clusters can be provided by these classification systems.

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Paper provided by SPRU - Science and Technology Policy Research, University of Sussex in its series SPRU Working Paper Series with number 138.

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Length: 33 pages
Date of creation: 27 Feb 2006
Date of revision:
Handle: RePEc:sru:ssewps:138

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Keywords: industrial clusters; firm location; innovation processes; cluster classification;

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