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Entrepreneurial Founder Effects in the Growth of Regional Clusters How Early Success is a Key Determinant

Author

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  • Michael S. Dahl
  • Christian Ø.R. Pedersen
  • Bent Dalum

Abstract

How can the growth of regional clusters be explained? This paper studies in great detail the growth of the wireless communication cluster in Northern Denmark. Unlike the dominant theories, we argue that initial success of the first firms are the main driving force behind the generation of new firms that eventually lead to the formation of clusters. The success of the first firms tends to generate spin-offs, which become successful themselves due to the background of the founders.

Suggested Citation

  • Michael S. Dahl & Christian Ø.R. Pedersen & Bent Dalum, 2005. "Entrepreneurial Founder Effects in the Growth of Regional Clusters How Early Success is a Key Determinant," DRUID Working Papers 05-18, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  • Handle: RePEc:aal:abbswp:05-18
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    References listed on IDEAS

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    1. Arthur, W. Brian, 1990. "'Silicon Valley' locational clusters: when do increasing returns imply monopoly?," Mathematical Social Sciences, Elsevier, vol. 19(3), pages 235-251, June.
    2. Bent Dalum, 1995. "Local and global linkages the radiocommunications cluster in Northern Denmark," Industry and Innovation, Taylor & Francis Journals, vol. 2(2), pages 89-109.
    3. Constance E. Helfat & Marvin B. Lieberman, 2002. "The birth of capabilities: market entry and the importance of pre-history," Industrial and Corporate Change, Oxford University Press, vol. 11(4), pages 725-760, August.
    4. Guido Buenstorf & Steven Klepper, 2009. "Heritage and Agglomeration: The Akron Tyre Cluster Revisited," Economic Journal, Royal Economic Society, vol. 119(537), pages 705-733, April.
    5. Steven Klepper & Sally Sleeper, 2005. "Entry by Spinoffs," Management Science, INFORMS, vol. 51(8), pages 1291-1306, August.
    6. Olav Sorenson, 2003. "Social networks and industrial geography," Journal of Evolutionary Economics, Springer, vol. 13(5), pages 513-527, December.
    7. Cooper, Arnold C., 1985. "The role of incubator organizations in the founding of growth-oriented firms," Journal of Business Venturing, Elsevier, vol. 1(1), pages 75-86.
    8. Agarwal, Rajshree & Echambadi, Raj & Franco, April M. & Sarkar, M. B., 2002. "Knowledge Transfer through Congenital Learning: Spin-Out Generation, Growth and Survival," Working Papers 02-0101, University of Illinois at Urbana-Champaign, College of Business.
    9. Klepper, Steven, 2001. "Employee Startups in High-Tech Industries," Industrial and Corporate Change, Oxford University Press, vol. 10(3), pages 639-674, September.
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    Citations

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    Cited by:

    1. Anne Otto, 2006. "The Role of New Firms for the Development of Clusters," ERSA conference papers ersa06p275, European Regional Science Association.
    2. Østergaard, Christian R., 2009. "Knowledge flows through social networks in a cluster: Comparing university and industry links," Structural Change and Economic Dynamics, Elsevier, vol. 20(3), pages 196-210, September.
    3. Christian R. Østergaard, 2007. "Knowledge Flows Through Social Networks in a Cluster Interfirm versus University-Industry Contacts," DRUID Working Papers 07-19, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    4. Anders Malmberg & Peter Maskell, 2010. "An Evolutionary Approach to Localized Learning and Spatial Clustering," Chapters,in: The Handbook of Evolutionary Economic Geography, chapter 18 Edward Elgar Publishing.

    More about this item

    Keywords

    Agglomeration; Clusters; Spin-offs; Knowledge Diffusion;

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

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