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Does 'Clustering' really help firms'innovative activities?

This paper examines whether location in strong industrial clusters translates into a higher probability of innovating. A firm-level analysis of the UK and Italy is performed. Innovative activities of firms (European patent data for 1988-98) are related to regional employment, other cluster-specific and firm-specific variables. Clustering per se does not explain all of a firm's inno-vative performance. While location in a cluster densely populated by innovative firms positively af-fects the likelihood of innovating, strong disadvantages arise from the presence of non-innova-tive firms, both in own and other sectors industries. Firms' innovative persistence and the regional knowledge stock are also important.

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Paper provided by KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy in its series KITeS Working Papers with number 111.

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Length: 46 pages
Date of creation: Feb 2000
Date of revision: Jul 2000
Handle: RePEc:cri:cespri:wp111
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