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Economic 'Clusters' in East Germany: Evidence on the Location and Characteristics of Spatially Concentrated Industries

  • Martin Rosenfeld
  • Peter Franz
  • Gerhard Heimpold

This article presents the results of an empirical study on spatially concentrated industries (SCI) with 'cluster' qualities in the eastern part of Germany which have emerged so far in the process of transformation. The findings reveal that SCI in East Germany which show 'cluster' qualities, i.e. SCI being supported by network activities and by innovative competences, are relatively rare, and they are strongly concentrated in agglomerated spaces. As the regional policy scheme which up to now has followed the 'watering can principle' has brought, so far, only poor results in terms of East-West convergence, a renewed policy with a special focus on agglomerated spaces (with more favourable conditions for economic growth) and with a stronger orientation on support for networking and innovative competences will probably be more effective in stimulating economic growth in East Germany.

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Article provided by Taylor & Francis Journals in its journal Post-Communist Economies.

Volume (Year): 19 (2007)
Issue (Month): 1 ()
Pages: 73-92

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Handle: RePEc:taf:pocoec:v:19:y:2007:i:1:p:73-92
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