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Cluster policy: Renewal through the integration of institutional variety

In: The Life Cycle of Clusters

Author

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  • Markus Grillitsch
  • Bjørn T. Asheim

Abstract

The literature on cluster evolution suggests that heterogeneity of firm capabilities and openness of network structures are essential for the renewal of mature and declining clusters. This chapter argues that the regional and institutional context in which clusters are embedded plays an important role for the renewal of clusters. It elaborates how the integration of institutional variety can stimulate the combination of different types of knowledge, learning and modes of innovation, thereby promoting cluster renewal. The conceptual argument is illustrated with a case study of the maritime cluster in Møre og Romsdal, Norway, which is one of the globally leading clusters in this industry. We find that key actors and policy play an important role in integrating institutional variety. Additionally, the case shows that institutional variety and the integration thereof can be a driving force for cluster renewal even in specialized and semi-peripheral locations.

Suggested Citation

  • Markus Grillitsch & Bjørn T. Asheim, 2017. "Cluster policy: Renewal through the integration of institutional variety," Chapters, in: Dirk Fornahl & Robert Hassink (ed.), The Life Cycle of Clusters, chapter 4, pages 76-94, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:16617_4
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    Cited by:

    1. Grillitsch, Markus & Trippl, Michaela, 2016. "Innovation Policies and New Regional Growth Paths: A place-based system failure framework," Papers in Innovation Studies 2016/26, Lund University, CIRCLE - Centre for Innovation Research.
    2. Smita Srinivas, 2020. "Institutional variety and the future of economics," Review of Evolutionary Political Economy, Springer, vol. 1(1), pages 13-35, May.
    3. Grillitsch, Markus, 2017. "Transformation Capacity of the Innovative Entrepreneur: On the interplay between social structure and agency," Papers in Innovation Studies 2017/2, Lund University, CIRCLE - Centre for Innovation Research.
    4. Rune Dahl Fitjar & Bram Timmermans, 2017. "Knowledge bases and relatedness: A study of labour mobility in Norwegian regions," Papers in Evolutionary Economic Geography (PEEG) 1712, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jun 2017.

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    Keywords

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    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General

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