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Clusters: Determinants and Effects

Author

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  • Alex Hoen

    (CPB Netherlands Bureau for Economic Policy Analysis)

Abstract

This memorandum surveys the empirical literature about the effects and determinants of clusters. It finds that clusters generally lead to more innovations, knowledge spillovers, faster diffusion of technologies and knowledge, and competitive advantages. The presence of a skilled labour force is the most important determinant for clusters. Other important factors for the existence of clusters are economies of scale and scope, knowledge spillovers, and competition from foreign competitors. Clusters appear to be especially important for small firms. Surprisingly, there is relatively little cooperation between these firms. Even though clusters are generally located near a knowledge institution, there is also relatively little cooperation between the cluster and the knowledge institution. Since clusters need skilled labour and competition, a good cluster policy may be no cluster policy at all. Instead, the government should look after an education system that produces a highly educated and skilled workforce, and stimulate competition by (further) opening markets to foreign competitors.

Suggested Citation

  • Alex Hoen, 2001. "Clusters: Determinants and Effects," CPB Memorandum 17, CPB Netherlands Bureau for Economic Policy Analysis.
  • Handle: RePEc:cpb:memodm:17
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    File URL: http://www.cpb.nl/sites/default/files/publicaties/download/memo17.pdf
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    References listed on IDEAS

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    1. Dick Snel & Henriëtte Hulshoff, 1998. "Technologische samenwerking in de industrie en de zakelijke diensten," Scales Research Reports A199809, EIM Business and Policy Research.
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    4. Alex R. Hoen, 2001. "An International Comparison of National Clusters," ERSA conference papers ersa01p27, European Regional Science Association.
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    15. repec:fth:harver:1473 is not listed on IDEAS
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    Cited by:

    1. Gerben Van Der Panne & Wilfred Dolfsma, 2003. "The odd role of proximity in knowledge relations: high-tech in the Netherlands," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 94(4), pages 453-462, September.
    2. Robles Teigeiro, Luis & Ramos Carvajal, Carmen, 2007. "Una propuesta metodológica para la identificación y evaluación de clusters a partir de tablas Input-Output. Una aplicación para Andalucía/A Methodological Proposal for Getting the Sectorial Clusters i," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 25, pages 759-790, Diciembre.
    3. Gerben Panne, van der & Wilfred Dolfsma, 2003. "The Geography of Innovativeness - New product announcements in The Netherlands," ERSA conference papers ersa03p334, European Regional Science Association.
    4. Maria Nowicka-Skowron & Piotr Pachura, 2010. "Theory Of Innovation In Spatial Perspective," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 1(1), pages 111-118, May.

    More about this item

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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