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Differences in Labor versus Value Chain Industry Clusters: An Empirical Investigation

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  • HENRY RENSKI
  • JUN KOO
  • EDWARD FESER

Abstract

ABSTRACT Regional analysts often identify industry clusters according to a single dimension of industrial interdependence, typically by trading patterns as revealed in national or regionalized input–output data. This is despite the fact that the theory underpinning regional industry cluster applications draws heavily on Marshall's theory of external economies, including the important role of labor pooling economies and knowledge spillovers in addition to spatially co‐located suppliers. This article investigates whether industry clusters identified based on trading relationships (value chain clusters) are meaningfully different in industrial composition and geography than those derived from an analysis of occupational employment requirements (labor‐based clusters). The results suggest that value chain linkages are a weak proxy for shared labor requirements, and vice versa.

Suggested Citation

  • Henry Renski & Jun Koo & Edward Feser, 2007. "Differences in Labor versus Value Chain Industry Clusters: An Empirical Investigation," Growth and Change, Wiley Blackwell, vol. 38(3), pages 364-395, September.
    • Handle: RePEc:bla:growch:v:38:y:2007:i:3:p:364-395
    DOI: 10.1111/j.1468-2257.2007.00375.x
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    References listed on IDEAS

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    1. Guy Dumais & Glenn Ellison & Edward L. Glaeser, 2002. "Geographic Concentration As A Dynamic Process," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 193-204, May.
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    1. Stewart, Lance A. & Lambert, Dayton M. & Wilcox, Michael D. & English, Burton C., 2009. "Tennessee Agriculture and Forestry Industry Clusters and Economic Performance, 2001-2006," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(01), pages 1-24, April.
    2. Mirko Titze & Matthias Brachert & Alexander Kubis, 2014. "Actors and Interactions—Identifying the Role of Industrial Clusters for Regional Production and Knowledge Generation Activities," Growth and Change, Wiley Blackwell, vol. 45(2), pages 163-190, June.
    3. Milene Tessarin & Ron Boschma & Deyu Li & Sergio Petralia, 2025. "Regional development traps in Europe. A study of occupational trajectories of regions," Papers in Evolutionary Economic Geography (PEEG) 2501, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2025.
    4. Allison Forbes, 2018. "A Measure of Interdependence: Skill in the Supply Chain," Economic Development Quarterly, , vol. 32(4), pages 326-340, November.
    5. Sowjanya Dhulipala & Gopal R. Patil, 2021. "Identification of freight generating industry complexes: A descriptive spatial analysis," Growth and Change, Wiley Blackwell, vol. 52(4), pages 2680-2712, December.
    6. Teresa Farinha & Pierre-Alexandre Balland & Andrea Morrison & Ron Boschma, 2019. "What drives the geography of jobs in the US? Unpacking relatedness," Industry and Innovation, Taylor & Francis Journals, vol. 26(9), pages 988-1022, October.
    7. Ann Markusen & Anne Gadwa Nicodemus, 2013. "Spatial divisions of labor: how key worker profiles vary for the same industry in different regions," Chapters, in: Frank Giarratani & Geoffrey J.D. Hewings & Philip McCann (ed.), Handbook of Industry Studies and Economic Geography, chapter 6, pages 171-190, Edward Elgar Publishing.
    8. Davide Consoli & Mabel Sánchez-Barrioluengo, 2016. "Polarization and the growth of low-skill employment in Spanish Local Labor Markets," Papers in Evolutionary Economic Geography (PEEG) 1628, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2016.
    9. Elizabeth Currid-Halkett & Kevin M. Stolarick, 2011. "The Arts: Not Just Artists (and Vice Versa)," Chapters, in: David Emanuel Andersson & Åke E. Andersson & Charlotta Mellander (ed.), Handbook of Creative Cities, chapter 13, Edward Elgar Publishing.
    10. Colleen K. Chrisinger & Christopher S. Fowler & Rachel Garshick Kleit, 2012. "Shared Skills: Occupation Clusters for Poverty Alleviation and Economic Development in the US," Urban Studies, Urban Studies Journal Limited, vol. 49(15), pages 3403-3425, November.

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