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“Don’t throw the baby out with the bath water”. Network failures and policy challenges for cluster long run dynamics

Author

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  • Jérôme Vicente

Abstract

Cluster policies have been recently called into question in the aftermath of several empirical evidences. Disentangling how market and network failures arguments play together in cluster policy design, we look for more robust micro foundations of network structuring in clusters. Our aim is to show that, in spite of this growing skepticism, new opportunities for cluster policy exist. They require moving their focus from the “connecting people” one best way that gets through the whole of cluster policy guidelines, to more surgical incentives for R&D collaborations, which favor suited structural properties of local knowledge networks along the life cycle of clusters.

Suggested Citation

  • Jérôme Vicente, 2014. "“Don’t throw the baby out with the bath water”. Network failures and policy challenges for cluster long run dynamics," Papers in Evolutionary Economic Geography (PEEG) 1420, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2014.
  • Handle: RePEc:egu:wpaper:1420
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    File URL: http://econ.geo.uu.nl/peeg/peeg1420.pdf
    File Function: Version October 2014
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    References listed on IDEAS

    as
    1. Jerome Vicente & Pierre Balland & Olivier Brossard, 2011. "Getting into Networks and Clusters: Evidence from the Midi-Pyrenean Global Navigation Satellite Systems (GNSS) Collaboration Network," Regional Studies, Taylor & Francis Journals, vol. 45(8), pages 1059-1078.
    2. Nishimura, Junichi & Okamuro, Hiroyuki, 2011. "Subsidy and networking: The effects of direct and indirect support programs of the cluster policy," Research Policy, Elsevier, vol. 40(5), pages 714-727, June.
    3. Raphael Suire & Jérome Vicente, 2009. "Why do some places succeed when others decline? A social interaction model of cluster viability," Journal of Economic Geography, Oxford University Press, vol. 9(3), pages 381-404, May.
    4. Antonelli, Cristiano, 2005. "Models of knowledge and systems of governance," Journal of Institutional Economics, Cambridge University Press, vol. 1(1), pages 51-73, June.
    5. Jérôme Vicente & Raphaël Suire, 2009. "Why Do Some Places Succeed When Others Decline? A Social Interaction Model of Cluster Viability," Post-Print hal-00418539, HAL.
    6. Philippe MARTIN & Thierry MAYER & Florian MAYNERIS, 2013. "Are clusters more resilient in crises? Evidence from French exporters in 2008-2009," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2013026, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    7. Pierre-Alexandre Balland, 2012. "Proximity and the Evolution of Collaboration Networks: Evidence from Research and Development Projects within the Global Navigation Satellite System (GNSS) Industry," Regional Studies, Taylor & Francis Journals, vol. 46(6), pages 741-756, September.
    8. Jean-Benoît Zimmermann, 2002. "« Grappes d'entreprises » et « petits mondes ». Une affaire de proximités," Revue économique, Presses de Sciences-Po, vol. 53(3), pages 517-524.
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    Cited by:

    1. Graf, Holger & Broekel, Tom, 2020. "A shot in the dark? Policy influence on cluster networks," Research Policy, Elsevier, vol. 49(3).
    2. Raphaël Suire, 2016. "Place, platform, and knowledge co-production dynamics: Evidence from makers and FabLab," Papers in Evolutionary Economic Geography (PEEG) 1623, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2016.

    More about this item

    Keywords

    cluster policy; knowledge spillover; network failures;

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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