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Network dynamics in regional clusters: The perspective of an emerging economy

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  • Elisa Giuliani

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Abstract

Regional clusters are spatial agglomerations of firms operating in the same or connected industries, which enable innovation and economic performance for firms. A wealth of empirical literature shows that one of key elements of the success of regional clusters is that they facilitate the formation of local inter-organizational networks, which act as conduits of knowledge and innovation. While most studies analyze the benefits and characteristics of regional cluster networks and focus on advanced economies and high tech Ôhot spotsÕ, this paper advances with the existing literature by analyzing network dynamics and taking an emerging economyÕs perspective. Using longitudinal data of a wine cluster in Chile and stochastic actor-oriented models for network dynamics, this paper examines what micro-level effects influence the formation of new knowledge ties among wineries. It finds that the coexistence of cohesion effects (reciprocity and transitivity) and the presence of inter-firm knowledge base heterogeneity contribute to the stability of an informal hierarchical network structure over time. Empirical results have interesting implications for cluster competitiveness and network studies, and for the burgeoning literature on corporate behavior in emerging economies.

Suggested Citation

  • Elisa Giuliani, 2010. "Network dynamics in regional clusters: The perspective of an emerging economy," Papers in Evolutionary Economic Geography (PEEG) 1014, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2010.
  • Handle: RePEc:egu:wpaper:1014
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    File URL: http://econ.geo.uu.nl/peeg/peeg1014.pdf
    File Function: Version October 2010
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    References listed on IDEAS

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    1. Roberta Capello & Alessandra Faggian, 2005. "Collective Learning and Relational Capital in Local Innovation Processes," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 75-87.
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    Cited by:

    1. Buchmann, Tobias & Hain, Daniel & Kudic, Muhamed & Müller, Matthias, 2014. "Exploring the Evolution of Innovation Networks in Science-driven and Scale-intensive Industries: New Evidence from a Stochastic Actor-based Approach," IWH Discussion Papers 1/2014, Halle Institute for Economic Research (IWH).
    2. Ron Boschma & Pierre-Alexandre Balland & Dieter Kogler, 2011. "A relational approach to knowledge spillovers in biotech. Network structures as drivers of inter-organizational citation patterns," Papers in Evolutionary Economic Geography (PEEG) 1120, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2011.
    3. Stefano Usai & Emanuela Marrocu & Raffaele Paci, 2017. "Networks, Proximities, and Interfirm Knowledge Exchanges," International Regional Science Review, , vol. 40(4), pages 377-404, July.
    4. José A. Belso-Martinez & Francesc Xavier Molina-Morales, 2013. "Non-Linear Relationships of Internal and External Resources on a Firm's Innovation: The Case of the Spanish Vinalopó Footwear Cluster," Growth and Change, Wiley Blackwell, vol. 44(3), pages 494-521, September.
    5. Pierre-Alexandre Balland & Mathijs De Vaan & Ron Boschma, 2013. "The dynamics of interfirm networks along the industry life cycle: The case of the global video game industry, 1987--2007," Journal of Economic Geography, Oxford University Press, vol. 13(5), pages 741-765, September.

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    Keywords

    Regional clusters; knowledge networks; network dynamics; wine industry; Chile;

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