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Innovative Clusters and the Industry Life Cycle

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  • Audretsch, David B
  • Feldman, Maryann P

Abstract

The purpose of this paper is to link the propensity for innovative activity to cluster spatially to the stage of the industry life cycle. The theory of knowledge spillovers, based on the knowledge production function for innovative activity, suggests that geographic proximity matters most in industries where tacit knowledge plays an important role in the generation of innovative activity. According to the emerging literature on the industry life cycle, tacit knowledge plays the most important role during the early stages of the industry life cycle. Based on a data base that identifies innovative activity for individual states and specific industries in the United States, the empirical evidence suggests that the propensity for innovative activity to concentrate geographically is shaped by the stage of the industry life cycle. The generation of new economic knowledge tends to result in a greater propensity for innovative activity to cluster during the early stages of the industry life cycle, and to be more highly dispersed during the mature and declining stages of the life cycle, particularly after controlling for the extent to which the location of production is geographically concentrated.

Suggested Citation

  • Audretsch, David B & Feldman, Maryann P, 1995. "Innovative Clusters and the Industry Life Cycle," CEPR Discussion Papers 1161, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:1161
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    Cited by:

    1. Johansson, Börje & Forslund, Ulla, 2005. "The Analysis of Location, Co-location and Urbanisation Economics," Working Paper Series in Economics and Institutions of Innovation 46, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    2. Russo, Antonio Paolo, 2000. "The Sustainable Cultural Cluster: Notes On Agglomeration, Tourism Policy And Information Technologies In Tourist Cities," ERSA conference papers ersa00p161, European Regional Science Association.
    3. Hoje Kang, 2010. "Detecting agglomeration processes using space–time clustering analyses," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(2), pages 291-311, October.
    4. Simon Condliffe & William Latham & Christian Le Bas & Frédéric Miribel, 2008. "Agglomeration Economies within IT-Producing and IT-Consuming Industries in U.S. Regions," Working Papers 08-24, University of Delaware, Department of Economics.
    5. Gerlach, Heiko & Rønde, Thomas & Stahl, Konrad, 2009. "Labor pooling in R&D intensive industries," Journal of Urban Economics, Elsevier, vol. 65(1), pages 99-111, January.
    6. Trippl, Michaela & Gabain, Joshua von & Tödtling, Franz, 2006. "Policy agents as catalysts of knowledge links in the biotechnology sector," SRE-Discussion Papers 1742, WU Vienna University of Economics and Business.
    7. John Cantwell & Simona Iammarino, 2001. "The technological relationships between indigenous firms and foreign-owned MNCs in the European regions," ERSA conference papers ersa01p269, European Regional Science Association.
    8. John Cantwell & Simona Iammarino, 1998. "MNCs, Technological Innovation and Regional Systems in the EU: Some Evidence in the Italian Case," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 5(3), pages 383-408.
    9. Tödtling, Franz & Lehner, Patrick & Trippl, Michaela, 2004. "Knowledge intensive industries, networks, and collective learning," SRE-Discussion Papers 636, WU Vienna University of Economics and Business.
    10. Steinle, Claus & Schiele, Holger, 2002. "When do industries cluster?: A proposal on how to assess an industry's propensity to concentrate at a single region or nation," Research Policy, Elsevier, vol. 31(6), pages 849-858, August.
    11. Rodríguez-Pose, Andrés & Refolo, Cristina, 2000. "The Link Between Clusters Of Smes And Public And University Research In Italy," ERSA conference papers ersa00p326, European Regional Science Association.
    12. Bee Yan Aw & Alfons Palangkaraya, 2004. "Local Knowledge Spillovers in the Indonesian Manufacturing Industry," Melbourne Institute Working Paper Series wp2004n18, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    13. Alex Hoen, 2001. "Clusters: Determinants and Effects," CPB Memorandum 17, CPB Netherlands Bureau for Economic Policy Analysis.
    14. Tödtling, Franz & Trippl, Michaela, 2004. "One size fits all? Towards a differentiated policy approach with respect to regional innovation systems," SRE-Discussion Papers 944, WU Vienna University of Economics and Business.
    15. Sara C. Santos Cruz & Aurora A.C. Teixeira, 2007. "A new look into the evolution of clusters literature. A bibliometric exercise," FEP Working Papers 257, Universidade do Porto, Faculdade de Economia do Porto.
    16. van Oort, F.G. & Stam, F.C., 2006. "Agglomeration Economies and Entrepreneurship in the ICT Industry," ERIM Report Series Research in Management ERS-2006-016-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    17. Niebuhr, Annekatrin, 2000. "Räumliche Wachstumszusammenhänge - empirische Befunde für Deutschland," HWWA Discussion Papers 84, Hamburg Institute of International Economics (HWWA).
    18. Keller, Dietmar & Jungnickel, Rolf, 2003. "German FDI and Integration of Production in the EU," HWWA Discussion Papers 232, Hamburg Institute of International Economics (HWWA).
    19. Vladimir Komarov, 2012. "Main Principles of Innovation Theory," Published Papers 173, Gaidar Institute for Economic Policy, revised 2013.

    More about this item

    Keywords

    Geography; Innovation; Life Cycle;

    JEL classification:

    • L0 - Industrial Organization - - General
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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