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Spill over or Spill out? – A multilevel analysis of the cluster and firm performance relationship

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  • Nils Grashof

Abstract

Regional clusters have become an inseparable component of modern economies. Spurred by the idea that clusters unrestrictedly encourage firm innovativeness, the cluster approach has particularly gained attention among politicians. Nevertheless, due to a lack of holistic consideration of different influencing variables, the scientific results about the effect of clusters on firm innovative performance are highly contradictive. Consequently, this paper aims to empirically investigate the conditions through which companies can gain from being located in clusters, focussing thereby particularly on moderating variables that relate to possible knowledge spillovers. Therefore, three different levels of analysis are considered separately and interactively. By analysing a unique multilevel dataset of 11.889 companies in Germany evidence is found that being located in a cluster has a positive impact on firm innovativeness. However, the results also indicate that firms benefit unequally within the cluster environment, depending on the specific firm, cluster and market/industry conditions.

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  • Nils Grashof, 2021. "Spill over or Spill out? – A multilevel analysis of the cluster and firm performance relationship," Industry and Innovation, Taylor & Francis Journals, vol. 28(10), pages 1298-1331, November.
    • Handle: RePEc:taf:indinn:v:28:y:2021:i:10:p:1298-1331
    DOI: 10.1080/13662716.2021.1967728
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    Cited by:

    1. Nils Grashof & Alexander Kopka, 2023. "Artificial intelligence and radical innovation: an opportunity for all companies?," Small Business Economics, Springer, vol. 61(2), pages 771-797, August.
    2. Alexander Kopka & Dirk Fornahl, 2024. "Artificial intelligence and firm growth — catch-up processes of SMEs through integrating AI into their knowledge bases," Small Business Economics, Springer, vol. 62(1), pages 63-85, January.
    3. Stefano Basilico & Nils Grashof, 2023. "The transition of brown regions: A matter of timing?," Jena Economics Research Papers 2023-003, Friedrich-Schiller-University Jena.
    4. Ling Zhang, 2024. "Spatial agglomeration of information services industry and its evolution: Evidence from the Pearl River Delta, China," Growth and Change, Wiley Blackwell, vol. 55(1), March.

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