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The Complementary Dynamic Effects of Clusters and Networks


  • Evert-Jan Visser


Over the past decades, researchers and policymakers around the world have been paying attention to the concept of clusters of related firms, industries and institutions, with a view to the presumably positive effects of clustering for learning, innovation and the productivity of firms. More recently, a network approach to learning and innovation emerged, which emphasizes strategic, preferential, repeated and at the same time temporary knowledge exchange (i.e. dynamic cooperation) between firms and other organizations. This may, however, go at the expense of the attention for the important, different and complementary learning effects of the mainly spatial process of concentration and clustering of related firms, industries and institutions. This paper argues that clusters and networks are two separate concepts that both merit attention, especially—albeit not exclusively—with a view to learning, knowledge development and innovation. A first argument is that spatial clustering has quite different effects for the development of knowledge, learning and innovation in and by firms, as compared with network settings. A second point is that in some cases, clustering yields a governance advantage over networks. Taking into account the risks of cognitive, technological, organizational and institutional lock-in associated with both processes, this paper concludes that both clustering and networking have advantages and disadvantages for the firms involved. The two concepts are potential dynamic complements, as clustering and networking have different but complementary effects for learning, although they are also static substitutes, as firms may opt to switch between the two processes, for example, leaving a local or regional cluster to engage in a network endeavor at a higher spatial scale.

Suggested Citation

  • Evert-Jan Visser, 2009. "The Complementary Dynamic Effects of Clusters and Networks," Industry and Innovation, Taylor & Francis Journals, vol. 16(2), pages 167-195.
  • Handle: RePEc:taf:indinn:v:16:y:2009:i:2:p:167-195
    DOI: 10.1080/13662710902764287

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    References listed on IDEAS

    1. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
    2. Anders Malmberg & Peter Maskell, 2006. "Localized Learning Revisited," Growth and Change, Wiley Blackwell, vol. 37(1), pages 1-18.
    3. Max-Peter Menzel & Dirk Fornahl, 2007. "Cluster Life Cycles - Dimensions and Rationales of Cluster Development," Jena Economic Research Papers 2007-076, Friedrich-Schiller-University Jena.
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    Cited by:

    1. Kudic, Muhamed & Pyka, Andreas & Sunder, Marco, 2013. "Network Formation: R&D Cooperation Propensity and Timing Among German Laser Source Manufacturers," IWH Discussion Papers 9/2013, Halle Institute for Economic Research (IWH).
    2. Evert-Jan Visser & José I. Távara & Fernando Villaran, 2015. "Growing but not Developing: Long-Term Effects of Clustering in the Peruvian Clothing Industry," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 106(1), pages 78-93, February.
    3. Alexander Ebner, 2013. "Cluster policies and entrepreneurial states in East Asia," Chapters,in: Clusters and Economic Growth in Asia, chapter 1, pages 1-20 Edward Elgar Publishing.
    4. Buchmann, Tobias & Hain, Daniel & Kudic, Muhamed & Müller, Matthias, 2014. "Exploring the Evolution of Innovation Networks in Science-driven and Scale-intensive Industries: New Evidence from a Stochastic Actor-based Approach," IWH Discussion Papers 1/2014, Halle Institute for Economic Research (IWH).
    5. Kudic, Muhamed & Bönisch, Peter & Dominguez Lacasa, Iciar, 2010. "Analyzing Innovation Drivers in the German Laser Industry: the Role of Positioning in the Social and Geographical Space," IWH Discussion Papers 22/2010, Halle Institute for Economic Research (IWH).
    6. Ron Boschma & Ron Martin, 2010. "The Aims and Scope of Evolutionary Economic Geography," Chapters,in: The Handbook of Evolutionary Economic Geography, chapter 1 Edward Elgar Publishing.
    7. Ana Isabel Moreno-Monroy & Gustavo Adolfo García Cruz, 2016. "Intra-Metropolitan Agglomeration of Formal and Informal Manufacturing Activity: Evidence from Cali, Colombia," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 107(4), pages 389-406, September.
    8. Schaumann, Katrin & Lange, Kersten, 2011. "Systematische Bestandsaufnahme von Clustern in der deutschen Automobilbranche," Arbeitspapiere 111, University of Münster, Institute for Cooperatives.

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    Clusters; networks; learning; innovation; governance;


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