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Cluster Performance reconsidered: Structure, Linkages and Paths in the German Biotechnology Industry, 1996-2003

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  • Häussler, Carolin
  • Zademach, Hans-Martin

Abstract

This paper addresses the evolution of biotechnology clusters in Germany between 1996 and 2003, paying particular attention to their respective composition in terms of venture capital, basic science institutions and biotechnology firms. Drawing upon the significance of co-location of "money and ideas", the literature stressing the importance of a cluster's openness and external linkages, and the path dependency debate, the paper aims to analyse how certain cluster characteristics correspond with its overall performance. After identifying different cluster types, we investigate their internal and external interconnectivity in comparative manner and draw on changes in cluster composition. Our results indicate that the structure, i.e. to which group the cluster belongs, and the openness towards external knowledge flows deliver merely unsystematic indications with regard to a cluster's overall success. Its ability to change composition towards a more balanced ratio of science and capital over time, on the other hand, turns out as a key explanatory factor. Hence, the dynamic perspective proves effective illuminating cluster growth and performance, where our explorative findings provide a promising avenue for further evolutionary research.

Suggested Citation

  • Häussler, Carolin & Zademach, Hans-Martin, 2006. "Cluster Performance reconsidered: Structure, Linkages and Paths in the German Biotechnology Industry, 1996-2003," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 188, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    • Handle: RePEc:trf:wpaper:188
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    Cited by:

    1. Stepan P. Zemtsov & Pavel N. Pavlov & Alla V. Sorokina, 2016. "Specifics Of Cluster Policy In Russia," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 11(3), pages 499-536, September.
    2. Haeussler, Carolin, 2009. "The Economics of Knowledge Regulation: An Empirical Analysis of Knowledge Flows," Discussion Papers in Business Administration 8971, University of Munich, Munich School of Management.
    3. Alexander Bode & Ingo Däberitz & Juri Fionik, 2011. "Messung von Kooperationserfolg in Clustern," Schmalenbach Journal of Business Research, Springer, vol. 63(7), pages 662-688, November.
    4. Anastasiia Konstantynova & Tine Lehmann, 2017. "Cluster Activities in Different Institutional Environments. Case Studies of ICT-Clusters from Austria, Germany, Ukraine and Serbia," Administrative Sciences, MDPI, vol. 7(2), pages 1-15, May.
    5. Hoenen, Sebastian & Kolympiris, Christos & Schoenmakers, Wilfred & Kalaitzandonakes, Nicholas, 2014. "The diminishing signaling value of patents between early rounds of venture capital financing," Research Policy, Elsevier, vol. 43(6), pages 956-989.
    6. Kolympiris, Christos & Kalaitzandonakes, Nicholas & Miller, Douglas, 2015. "Location choice of academic entrepreneurs: Evidence from the US biotechnology industry," Journal of Business Venturing, Elsevier, vol. 30(2), pages 227-254.
    7. Hans-Martin Zademach & Manuel Rimkus, 2009. "Herausforderung Wissenstransfer in Clustern - Neues Wissen vom Biotechnologiestandort Martinsried," Schmalenbach Journal of Business Research, Springer, vol. 61(4), pages 416-438, June.

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    More about this item

    Keywords

    Cluster evolution; dynamic perspective; basic science; venture capital; biotechnology; Germany;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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