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Do Firms Benefit from Being Present in Multiple Technology Clusters? An Assessment of the Technological Performance of Biopharmaceutical Firms

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  • Catherine Lecocq
  • Bart Leten
  • Jeroen Kusters
  • Bart Van Looy

Abstract

Firms active in knowledge-intensive fields are increasingly organizing their R&D activities on an international scale. This paper investigates whether firms active in biotechnology can improve their technological performance by developing R&D activities in multiple technology clusters. Regions in the US, Japan and Europe, that host a concentration of biotechnology activity are identified as clusters. Fixed-effect panel data analyses with 59 biopharmaceutical firms (period 1995-2002) provides evidence for a positive, albeit diminishing (inverted-U shape) relationship between the number of technology clusters in which a firm is present and its overall technological performance. This effect is distinct from a mere multi-location effect.

Suggested Citation

  • Catherine Lecocq & Bart Leten & Jeroen Kusters & Bart Van Looy, 2010. "Do Firms Benefit from Being Present in Multiple Technology Clusters? An Assessment of the Technological Performance of Biopharmaceutical Firms," Papers in Evolutionary Economic Geography (PEEG) 1019, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2010.
    • Handle: RePEc:egu:wpaper:1019
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    Cited by:

    1. Sara Melén Hånell & Emilia Rovira Nordman & Daniel Tolstoy, 2017. "New product development in foreign customer relationships: a study of international SMEs," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 29(7-8), pages 715-734, August.
    2. Dirk Engel & Timo Mitze & Roberto Patuelli & Janina Reinkowski, 2013. "Does Cluster Policy Trigger R&D Activity? Evidence from German Biotech Contests," European Planning Studies, Taylor & Francis Journals, vol. 21(11), pages 1735-1759, November.
    3. Rene Belderbos & Vincent Van Roy & Bart Leten & Bart Thijs, 2014. "Academic Research Strengths and Multinational Firms' Foreign R&D Location Decisions: Evidence from R&D Investments in European Regions," Environment and Planning A, , vol. 46(4), pages 920-942, April.
    4. Janina Reinkowski, 2014. "Empirical Essays in the Economics of Ageing and the Economics of Innovation," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 53.
    5. Vlaisavljevic, Vesna & Medina, Carmen Cabello & Van Looy, Bart, 2020. "The role of policies and the contribution of cluster agency in the development of biotech open innovation ecosystem," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    6. Vrontis, Demetris & Christofi, Michael, 2021. "R&D internationalization and innovation: A systematic review, integrative framework and future research directions," Journal of Business Research, Elsevier, vol. 128(C), pages 812-823.
    7. Hohberger, Jan & Wilden, Ralf, 2022. "Geographic diversity of knowledge inputs: The importance of aligning locations of knowledge inputs and inventors," Journal of Business Research, Elsevier, vol. 145(C), pages 705-719.
    8. Miroslav Žižka & Vladimíra Hovorková Valentová & Natalie Pelloneová & Eva Štichhauerová, 2018. "The effect of clusters on the innovation performance of enterprises: traditional vs new industries," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 5(4), pages 780-794, June.
    9. Sanwar A. Sunny & Cheng Shu, 2019. "Investments, incentives, and innovation: geographical clustering dynamics as drivers of sustainable entrepreneurship," Small Business Economics, Springer, vol. 52(4), pages 905-927, April.
    10. Miroslav Žižka & Vladimíra Hovorková Valentová & Natalie Pelloneová & Eva Štichhauerová, 2018. "The effect of clusters on the innovation performance of enterprises: traditional vs new industries," Post-Print hal-01857439, HAL.
    11. McCarthy, Killian J & Aalbers, Hendrik Leendert, 2022. "Alliance-to-acquisition transitions: The technological performance implications of acquiring one's alliance partners," Research Policy, Elsevier, vol. 51(6).
    12. Zhao, Yang & Yongquan, Yang & Jian, Ma & Lu, Angela & Xuanhua, Xu, 2024. "Policy-induced cooperative knowledge network, university-industry collaboration and firm innovation: Evidence from the Greater Bay Area," Technological Forecasting and Social Change, Elsevier, vol. 200(C).

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    More about this item

    Keywords

    region; clusters; biotechnology; technology clusters;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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