Public policies and cluster life cycles: insights from the Basque Country experience

This paper contributes to the study of the role of public policies in the origins and evolution of clusters. Building on the existing literature, we set up a taxonomy of nine public policies that may have an impact on the emergence and evolution of clusters. Based on in-depth case studies of six clusters of the Basque Country, particularly representative of the industrial history of the region, we analyse the relevance of the different types of policies both in the emergence and evolution of clusters over time. In agreement with cluster literature, the paper concludes that public policies seem to have played only an indirect role across clusters and over their life cycles. Moreover, it points to the necessity of taking history and context into account, as most of the important policy measures highlighted by cluster literature today do not fit well with the previous policy and economic context. Finally, it also concludes that for cluster policies to be effective, the stages of the life cycle should be taken into consideration.