IDEAS home Printed from https://ideas.repec.org/a/oup/indcch/v24y2015i4p859-873..html
   My bibliography  Save this article

Do spinoff dynamics or agglomeration externalities drive industry clustering? A reappraisal of Steven Klepper’s work

Author

Listed:
  • Ron Boschma

Abstract

Steven Klepper’s theory of industry clustering based on organizational reproduction and inheritance through spinoffs challenged the Marshallian view on industry clustering. This article provides an assessment of Klepper’s theoretical and empirical work on industry clustering. We explore how "new" his spinoff theory on industry clustering was, and we investigate the impact of Klepper’s theory on the economic geography community. Klepper’s work has inspired especially recent literature on regional branching that argues that new industries grow out of and recombine capabilities from local related industries. Finally, the article discusses what questions on industry location are still left open or in need of more evidence in the context of Klepper’s theory.

Suggested Citation

  • Ron Boschma, 2015. "Do spinoff dynamics or agglomeration externalities drive industry clustering? A reappraisal of Steven Klepper’s work," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(4), pages 859-873.
    • Handle: RePEc:oup:indcch:v:24:y:2015:i:4:p:859-873.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/icc/dtv024
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ron A. Boschma & Jan G. Lambooy, 1999. "Evolutionary economics and economic geography," Journal of Evolutionary Economics, Springer, vol. 9(4), pages 411-429.
    2. Klepper, Steven, 2010. "The origin and growth of industry clusters: The making of Silicon Valley and Detroit," Journal of Urban Economics, Elsevier, vol. 67(1), pages 15-32, January.
    3. Ron A. Boschma & Rik Wenting, 2007. "The spatial evolution of the British automobile industry: Does location matter?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(2), pages 213-238, April.
    4. Mathijs De Vaan & Ron Boschma & Koen Frenken, 2013. "Clustering and firm performance in project-based industries: the case of the global video game industry , 1972--2007," Journal of Economic Geography, Oxford University Press, vol. 13(6), pages 965-991, November.
    5. Guido Buenstorf & Steven Klepper, 2009. "Heritage and Agglomeration: The Akron Tyre Cluster Revisited," Economic Journal, Royal Economic Society, vol. 119(537), pages 705-733, April.
    6. Udo Staber, 2001. "Spatial Proximity and Firm Survival in a Declining Industrial District: The Case of Knitwear Firms in Baden-Wu¨rttemberg," Regional Studies, Taylor & Francis Journals, vol. 35(4), pages 329-341.
    7. Rik Wenting & Koen Frenken, 2011. "Firm entry and institutional lock-in: an organizational ecology analysis of the global fashion design industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 20(4), pages 1031-1048, August.
    8. Anne Nygaard Tanner, 2014. "Regional Branching Reconsidered: Emergence of the Fuel Cell Industry in European Regions," Economic Geography, Clark University, vol. 90(4), pages 403-427, October.
    9. Michael Porter, 2003. "The Economic Performance of Regions," Regional Studies, Taylor & Francis Journals, vol. 37(6-7), pages 549-578.
    10. Koen Frenken & Ron A. Boschma, 2007. "A theoretical framework for evolutionary economic geography: industrial dynamics and urban growth as a branching process," Journal of Economic Geography, Oxford University Press, vol. 7(5), pages 635-649, September.
    11. Ron Boschma & Asier Minondo & Mikel Navarro, 2013. "The Emergence of New Industries at the Regional Level in S pain: A Proximity Approach Based on Product Relatedness," Economic Geography, Taylor & Francis Journals, vol. 89(1), pages 29-51, January.
    12. Kenney, Martin & von Burg, Urs, 1999. "Technology, Entrepreneurship and Path Dependence: Industrial Clustering in Silicon Valley and Route 128," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 8(1), pages 67-103, March.
    13. Koen Frenken & Elena Cefis & Erik Stam, 2020. "Industrial Dynamics and Clusters: A Survey," Regional Studies, Taylor & Francis Journals, vol. 49(1), pages 10-27, July.
    14. Ron Boschma & Pierre-Alexandre Balland & Dieter Franz Kogler, 2015. "Relatedness and technological change in cities: the rise and fall of technological knowledge in US metropolitan areas from 1981 to 2010," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(1), pages 223-250.
    15. Steven Klepper, 2011. "Nano-economics, spinoffs, and the wealth of regions," Small Business Economics, Springer, vol. 37(2), pages 141-154, September.
    16. Fujita,Masahisa & Thisse,Jacques-François, 2013. "Economics of Agglomeration," Cambridge Books, Cambridge University Press, number 9781107001411.
    17. Frank M.H. Neffke & Martin Henning & Ron Boschma, 2012. "The impact of aging and technological relatedness on agglomeration externalities: a survival analysis," Journal of Economic Geography, Oxford University Press, vol. 12(2), pages 485-517, March.
    18. Steven Klepper, 2007. "The Evolution of Geographic Structure in New Industries," Chapters, in: Koen Frenken (ed.), Applied Evolutionary Economics and Economic Geography, chapter 4, Edward Elgar Publishing.
    19. Buenstorf, Guido & Klepper, Steven, 2010. "Why does entry cluster geographically? Evidence from the US tire industry," Journal of Urban Economics, Elsevier, vol. 68(2), pages 103-114, September.
    20. Carla Costa & Rui Baptista, 2012. "Agglomeration vs. Organizational Reproduction: The Molds Cluster in Portugal," Papers in Evolutionary Economic Geography (PEEG) 1222, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2012.
    21. Michael Fritsch & Michael Wyrwich, 2012. "The Long Persistence of Regional Entrepreneurship Culture: Germany 1925-2005," Jena Economics Research Papers 2012-036, Friedrich-Schiller-University Jena.
    22. Henderson, Vernon & Kuncoro, Ari & Turner, Matt, 1995. "Industrial Development in Cities," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 1067-1090, October.
    23. Gilles Duranton & Diego Puga, 2001. "Nursery Cities: Urban Diversity, Process Innovation, and the Life Cycle of Products," American Economic Review, American Economic Association, vol. 91(5), pages 1454-1477, December.
    24. Guido Buenstorf & Michael Fritsch & Luis F. Medrano, 2020. "Regional Knowledge, Organizational Capabilities and the Emergence of the West German Laser Systems Industry, 1975–2005," Regional Studies, Taylor & Francis Journals, vol. 49(1), pages 59-75, July.
    25. C. A. Hidalgo & B. Klinger & A. -L. Barabasi & R. Hausmann, 2007. "The Product Space Conditions the Development of Nations," Papers 0708.2090, arXiv.org.
    26. Ron Martin & Peter Sunley, 2006. "Path dependence and regional economic evolution," Journal of Economic Geography, Oxford University Press, vol. 6(4), pages 395-437, August.
    27. Martin Andersson & Sierdjan Koster, 2011. "Sources of persistence in regional start-up rates--evidence from Sweden," Journal of Economic Geography, Oxford University Press, vol. 11(1), pages 179-201, January.
    28. Dorfman, Nancy S., 1983. "Route 128: The development of a regional high technology economy," Research Policy, Elsevier, vol. 12(6), pages 299-316, December.
    29. Ron A. Boschma & Koen Frenken, 2006. "Why is economic geography not an evolutionary science? Towards an evolutionary economic geography," Journal of Economic Geography, Oxford University Press, vol. 6(3), pages 273-302, June.
    30. Guido Buenstorf & Christina Guenther, 2011. "No place like home? Relocation, capabilities, and firm survival in the German machine tool industry after World War II," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 20(1), pages 1-28, February.
    31. Ron A. Boschma & Rik Wenting, 2004. "The spatial evolution of the British automobile industry," Papers in Evolutionary Economic Geography (PEEG) 0504, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2004.
    32. Russell Golman & Steven Klepper, 2016. "Spinoffs and clustering," RAND Journal of Economics, RAND Corporation, vol. 47(2), pages 341-365, May.
    33. Guido Buenstorf & Matthias Geissler, 2011. "The origins of entrants and the geography of the German laser industry," Papers in Regional Science, Wiley Blackwell, vol. 90(2), pages 251-270, June.
    34. M Taylor, 1986. "The Product-Cycle Model: A Critique," Environment and Planning A, , vol. 18(6), pages 751-761, June.
    35. Klepper, Steven, 1996. "Entry, Exit, Growth, and Innovation over the Product Life Cycle," American Economic Review, American Economic Association, vol. 86(3), pages 562-583, June.
    36. G. M. Peter Swann & Rui Baptista, 1999. "A comparison of clustering dynamics in the US and UK computer industries," Journal of Evolutionary Economics, Springer, vol. 9(3), pages 373-399.
    37. Anne Nygaard Tanner, 2014. "Regional Branching Reconsidered: Emergence of the Fuel Cell Industry in European Regions," Economic Geography, Taylor & Francis Journals, vol. 90(4), pages 403-427, October.
    38. Rik Wenting, 2008. "Spinoff dynamics and the spatial formation of the fashion design industry, 1858-2005," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 593-614, September.
    39. Mercedes Delgado & Michael E. Porter & Scott Stern, 2010. "Clusters and entrepreneurship," Journal of Economic Geography, Oxford University Press, vol. 10(4), pages 495-518, July.
    40. Michael S. Dahl & Olav Sorenson, 2012. "Home Sweet Home: Entrepreneurs' Location Choices and the Performance of Their Ventures," Management Science, INFORMS, vol. 58(6), pages 1059-1071, June.
    41. Ron Martin & Peter Sunley, 2011. "Conceptualizing Cluster Evolution: Beyond the Life Cycle Model?," Regional Studies, Taylor & Francis Journals, vol. 45(10), pages 1299-1318, November.
    42. Barbara Heebels & Ron Boschma, 2011. "Performing in Dutch book publishing 1880--2008: the importance of entrepreneurial experience and the Amsterdam cluster," Journal of Economic Geography, Oxford University Press, vol. 11(6), pages 1007-1029, November.
    43. Michael S. Dahl & Christian Ø.R. Pedersen & Bent Dalum, 2003. "Entry by Spinoff in a High-tech Cluster," DRUID Working Papers 03-11, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    44. Breschi, Stefano & Malerba, Franco, 2001. "The Geography of Innovation and Economic Clustering: Some Introductory Notes," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(4), pages 817-833, December.
    45. Lucia Cusmano & Andrea Morrison & Enrico Pandolfo, 2015. "Spin-off and clustering: a return to the Marshallian district," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 39(1), pages 49-66.
    46. Giacomo Becattini & Marco Bellandi & Lisa De Propis (ed.), 2009. "A Handbook of Industrial Districts," Books, Edward Elgar Publishing, number 12736.
    47. Constance E. Helfat & Marvin B. Lieberman, 2002. "The birth of capabilities: market entry and the importance of pre-history," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(4), pages 725-760, August.
    48. Steven Klepper, 2007. "Disagreements, Spinoffs, and the Evolution of Detroit as the Capital of the U.S. Automobile Industry," Management Science, INFORMS, vol. 53(4), pages 616-631, April.
    49. Michael Fritsch & Michael Wyrwich, 2014. "The Long Persistence of Regional Levels of Entrepreneurship: Germany, 1925-2005," Regional Studies, Taylor & Francis Journals, vol. 48(6), pages 955-973, June.
    50. Scott Shane, 2000. "Prior Knowledge and the Discovery of Entrepreneurial Opportunities," Organization Science, INFORMS, vol. 11(4), pages 448-469, August.
    51. Frank Neffke & Martin Henning & Ron Boschma & Karl-Johan Lundquist & Lars-Olof Olander, 2011. "The Dynamics of Agglomeration Externalities along the Life Cycle of Industries," Regional Studies, Taylor & Francis Journals, vol. 45(1), pages 49-65.
    52. Heike Mayer, 2013. "Entrepreneurship in a Hub-and-Spoke Industrial District: Firm Survey Evidence from Seattle's Technology Industry," Regional Studies, Taylor & Francis Journals, vol. 47(10), pages 1715-1733, November.
    53. Ron Boschma & Anne L. J. ter Wal, 2007. "Knowledge Networks and Innovative Performance in an Industrial District: The Case of a Footwear District in the South of Italy," Industry and Innovation, Taylor & Francis Journals, vol. 14(2), pages 177-199.
    54. Pontus Braunerhjelm & Bo Carlsson, 2011. "Steven Klepper: Recipient of the 2011 Global Award for Entrepreneurship Research," Small Business Economics, Springer, vol. 37(2), pages 131-140, September.
    55. Harald Bathelt & Andrew K. Munro & Ben Spigel, 2013. "Challenges of Transformation: Innovation, Re-bundling and Traditional Manufacturing in Canada's Technology Triangle," Regional Studies, Taylor & Francis Journals, vol. 47(7), pages 1111-1130, July.
    56. Steven Klepper, 2002. "The capabilities of new firms and the evolution of the US automobile industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(4), pages 645-666, August.
    57. Stuart, Toby & Sorenson, Olav, 2003. "The geography of opportunity: spatial heterogeneity in founding rates and the performance of biotechnology firms," Research Policy, Elsevier, vol. 32(2), pages 229-253, February.
    58. Max-Peter Menzel & Johannes Kammer, 2012. "Industry Evolution in Varieties-of-Capitalism: a Survival Analysis on Wind Turbine Producers in Denmark and the USA," Papers in Evolutionary Economic Geography (PEEG) 1220, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2012.
    59. Gort, Michael & Klepper, Steven, 1982. "Time Paths in the Diffusion of Product Innovations," Economic Journal, Royal Economic Society, vol. 92(367), pages 630-653, September.
    60. Steven Klepper & Kenneth L. Simons, 2000. "Dominance by birthright: entry of prior radio producers and competitive ramifications in the U.S. television receiver industry," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 997-1016, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hervas Oliver,Jose Luis & Gonzalez,Gregorio & Caja,Pedro, 2014. "Clusters and industrial districts: where is the literature going? Identifying emerging sub-fields of research," INGENIO (CSIC-UPV) Working Paper Series 201409, INGENIO (CSIC-UPV).
    2. Ron Boschma & Koen Frenken, 2015. "Evolutionary Economic Geography," Papers in Evolutionary Economic Geography (PEEG) 1518, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2015.
    3. Ron Boschma & Koen Frenken, 2011. "The emerging empirics of evolutionary economic geography," Journal of Economic Geography, Oxford University Press, vol. 11(2), pages 295-307, March.
    4. Andrea Morrison & Ron Boschma, 2019. "The spatial evolution of the Italian motorcycle industry (1893–1993): Klepper’s heritage theory revisited," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(3), pages 613-634.
    5. Hervas-Oliver, Jose-Luis & Lleo, María & Cervello, Roberto, 2017. "The dynamics of cluster entrepreneurship: Knowledge legacy from parents or agglomeration effects? The case of the Castellon ceramic tile district," Research Policy, Elsevier, vol. 46(1), pages 73-92.
    6. Buenstorf, Guido & Costa, Carla, 2018. "Drivers of spin-off performance in industry clusters: Embodied knowledge or embedded firms?," Research Policy, Elsevier, vol. 47(3), pages 663-673.
    7. Ron Boschma, 2015. "Towards an Evolutionary Perspective on Regional Resilience," Regional Studies, Taylor & Francis Journals, vol. 49(5), pages 733-751, May.
    8. Kim, Jungho & Kollmann, Trevor & Palangkaraya, Alfons & Webster, Elizabeth, 2022. "Does local technological specialisation, diversity and dynamic competition enhance firm creation?," Research Policy, Elsevier, vol. 51(7).
    9. Mark J. O. Bagley, 2019. "Networks, geography and the survival of the firm," Journal of Evolutionary Economics, Springer, vol. 29(4), pages 1173-1209, September.
    10. Ron Boschma & Ron Martin, 2010. "The Aims and Scope of Evolutionary Economic Geography," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 1, Edward Elgar Publishing.
    11. Koen Frenken & Elena Cefis & Erik Stam, 2020. "Industrial Dynamics and Clusters: A Survey," Regional Studies, Taylor & Francis Journals, vol. 49(1), pages 10-27, July.
    12. Sándor Juhász, 2021. "Spinoffs and tie formation in cluster knowledge networks," Small Business Economics, Springer, vol. 56(4), pages 1385-1404, April.
    13. Matthias Firgo & Peter Mayerhofer, 2015. "Wissensintensive Unternehmensdienste, Wissens-Spillovers und regionales Wachstum. Teilprojekt 1: Wissens-Spillovers und regionale Entwicklung – Welche strukturpolitische Ausrichtung optimiert das Wach," WIFO Studies, WIFO, number 58342.
    14. Ron Boschma & Matté Hartog, 2014. "Merger and Acquisition Activity as Driver of Spatial Clustering: The Spatial Evolution of the Dutch Banking Industry, 1850–1993," Economic Geography, Taylor & Francis Journals, vol. 90(3), pages 247-266, July.
    15. Matthias Firgo & Peter Mayerhofer, 2015. "Wissens-Spillovers und regionale Entwicklung - welche strukturpolitische Ausrichtung optimiert des Wachstum?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 144, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    16. Fredin, Sabrina, 2012. "The Dynamics and Evolution of Local Industries – The case of Linköping," Papers in Innovation Studies 2012/7, Lund University, CIRCLE - Centre for Innovation Research.
    17. repec:elg:eechap:14395_14 is not listed on IDEAS
    18. Canfei He & Yan Yan & David Rigby, 2015. "Regional Industrial Evolution in China: Path Dependence or Path Creation?," Papers in Evolutionary Economic Geography (PEEG) 1520, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2015.
    19. Jürgen Essletzbichler, 2013. "Relatedness, industrial branching and technological cohesion in U.S. metropolitan areas," Papers in Evolutionary Economic Geography (PEEG) 1307, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2013.
    20. Delgado, Mercedes & Porter, Michael E. & Stern, Scott, 2014. "Clusters, convergence, and economic performance," Research Policy, Elsevier, vol. 43(10), pages 1785-1799.
    21. Ron Boschma, Lars Coenen, Koen Frenken, Bernhard Truffer & Lars Coenen & Koen Frenken & Bernhard Truffer, 2016. "Towards a theory of regional diversification," Papers in Evolutionary Economic Geography (PEEG) 1617, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2016.

    More about this item

    JEL classification:

    • B15 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Historical; Institutional; Evolutionary
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:indcch:v:24:y:2015:i:4:p:859-873.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/icc .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.