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Why some clusters succeed whereas others decline ? Modelling the ambivalent stability properties of clusters

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Author Info

  • Raphaël Suire

    (CREM - CNRS)

  • Jérome Vicente

    (LEREPS - GRES)

  • Yan Dala Pria

    (CSO - IEP - CNRS)

Abstract

The aim of this paper is to study the ambivalent properties of stabilities of clusters. We propose to enter the black box of the local knowledge externalities by focusing on the location decision externalities. In particular, we show that the nature of mimetic strategies in the convergence process of locational choices influence the dynamic stability of clusters. Thus, when uncertainty and search for legitimacy prevail on the need for coordination and the associated necessities of compatibility and technological convergence, the clusters are unstable, due to an excess of cognitive proximity and a risk of unintended spillovers. Nevertheless, this search for legitimacy, through the strategy which consists in following the locational choice of companies leader of a sector, can lead to the fast emergence of a cluster. But without relational proximity, its stability is not insured. These results are obtained following the formulation of some theoretical proposals on the links between location decision externalities and the resulting forms of socioeconomic proximities. This set of proposals is validated firstly by a model of simulation which makes it possible to test the properties of stability of aggregate outcomes of locational choices. Secondly, they are illustrated by a comparative empirical analysis of two main French clusters (Silicon Sentier and Sophia-Antipolis)..

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Bibliographic Info

Paper provided by Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS in its series Economics Working Paper Archive (University of Rennes 1 & University of Caen) with number 200619.

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Date of creation: 2006
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Handle: RePEc:tut:cremwp:200619

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Postal: CREM (UMR CNRS 6211) – Faculty of Economics, 7 place Hoche, 35065 RENNES Cedex
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Web page: http://crem.univ-rennes1.fr/
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Postal: CREM (UMR CNRS 6211) - Faculty of Economics, 7 place Hoche, 35065 Rennes Cedex - France
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Related research

Keywords: clusters; proximities; stability; location under decision externalities; Silicon Sentier; Sophia-Antipolis;

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References

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  1. Christian Longhi, 1999. "Networks, Collective Learning and Technology Development in Innovative High Technology Regions: The Case of Sophia-Antipolis," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 333-342.
  2. Danny Quah, 2000. "Internet Cluster Emergence," CEP Discussion Papers dp0441, Centre for Economic Performance, LSE.
  3. Caplin, A. & Leahy, J., 1993. "Miracle on Sixth Avenue: Information Externalities and Search," Discussion Papers 1993_20, Columbia University, Department of Economics.
  4. Quah, Danny, 1999. "Internet Cluster Emergence," CEPR Discussion Papers 2293, C.E.P.R. Discussion Papers.
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  7. Antonelli, Cristiano, 2005. "Models of knowledge and systems of governance," Journal of Institutional Economics, Cambridge University Press, vol. 1(01), pages 51-73, June.
  8. Breschi, Stefano & Lissoni, Francesco, 2000. "Knowledge Spillovers And Local Innovation Systems: A Critical Survey," ERSA conference papers ersa00p362, European Regional Science Association.
  9. Charles F. Manski, 2000. "Economic Analysis of Social Interactions," NBER Working Papers 7580, National Bureau of Economic Research, Inc.
  10. Geroski, Paul A, 1999. "Models of Technology Diffusion," CEPR Discussion Papers 2146, C.E.P.R. Discussion Papers.
  11. Jerome Vicente & Rapha�l Suire, 2007. "Informational Cascades versus Network Externalities in Locational Choice: Evidence of 'ICT Clusters' Formation and Stability," Regional Studies, Taylor & Francis Journals, vol. 41(2), pages 173-184.
  12. Stephen Appold, 2005. "Location Patterns of US Industrial Research: Mimetic Isomorphism and the Emergence of Geographic Charisma," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 17-39.
  13. Bikhchandani, Sushil & Hirshleifer, David & Welch, Ivo, 1992. "A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 992-1026, October.
  14. Banerjee, Abhijit V, 1992. "A Simple Model of Herd Behavior," The Quarterly Journal of Economics, MIT Press, vol. 107(3), pages 797-817, August.
  15. Andr Torre Shaw & Jean-Pierre Gilly, 2000. "On the Analytical Dimension of Proximity Dynamics," Regional Studies, Taylor & Francis Journals, vol. 34(2), pages 169-180.
  16. Ron A. Boschma & Jan G. Lambooy, 1999. "Evolutionary economics and economic geography," Journal of Evolutionary Economics, Springer, vol. 9(4), pages 411-429.
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