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Cluster Policy and Firm Performance: A Case Study of the French Optic/Photonic Industry

Author

Listed:
  • Amel Ben Abdesslem

    (LAREFI
    University of Bordeaux, France)

  • Raphaël Chiappini

    (Université Côte d'Azur
    GREDEG CNRS)

Abstract

This study empirically analyzes the effects of a cluster policy on firms' productivity, exports, employment and capital in the French optic/photonic industry. Exploiting firm-level data, we first analyze the selection process of the French cluster policy through a logit model, before combining a propensity score matching procedure and a differences-in-differences estimation in order to capture its impact on firms' performance in the optic/photonic industry. We first show that larger firms are more likely to be selected by the French public policy in the optic/photonic industry. Second, the firms that have received the competitiveness cluster label have become more productive. We also found a positive and significant impact of the public policy on exports, total fixed assets and employment, but no evidence has been found localization economies. Third, when compared to an industrial cluster that only benefits from agglomeration economies, we found that firms from the competitiveness clusters have experienced a labor productivity gain, greater employment, and an increase in total fixed assets.

Suggested Citation

  • Amel Ben Abdesslem & Raphaël Chiappini, 2016. "Cluster Policy and Firm Performance: A Case Study of the French Optic/Photonic Industry," GREDEG Working Papers 2016-26, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
  • Handle: RePEc:gre:wpaper:2016-26
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Cluster policy; productivity; difference-in-difference; optic/phonotic industry;

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • 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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