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The rise and fall of industrial clusters: Technology and the life cycle of region

  • Mario A. Maggioni

    ()

    (Catholic University of Milan)

When a major technological innovation spreads out in both high-tech and middle/low-tech industries, new clusters appear, develop and grow at the expenses of "older" historical industrial sites. The literature has, under various labels, recognised three main stages of cluster development: an initial stage sparked by an initial exogenous, shock; a second stage driven by Marshall's (1920) agglomeration economies (labour market pooling, supply of intermediate goods and services and knowledge spillovers); a third stage in which the cluster either achieves a sectoral leadership or declines. The paper shows how different clusters' evolution (often told as separated stories) are part of a wider picture in which technological and spatial interactions between emerging and declining clusters play a decisive role. A final section draws some policy suggestions for public authorities and regional planners dealing with the development of an innovative cluster.

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File URL: http://ieb.ub.edu/aplicacio/fitxers/220038ART151.pdf
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Paper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2004/6.

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Length: 43 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:ieb:wpaper:220038art151
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  1. Maggioni Mario, 2004. "High-tech Firms' Location and the Development of Innovative Industrial Clusters: A Survey of the Literature," Economia politica, Società editrice il Mulino, issue 1, pages 127-166.
  2. Norman J. IRELAND & Paul L. STONEMAN, 1985. "Order Effects, Perfect Foresight and Intertemporal Price Discrimination," Discussion Papers (REL - Recherches Economiques de Louvain) 1985012, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  3. Michael S. Dahl & Christian Ø.R. Pedersen & Bent Dalum, 2003. "Entry by Spinoff in a High-tech Cluster," DRUID Working Papers 03-11, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  4. Joseph Farrell and Garth Saloner., 1986. "Competition, Compatibility and Standards: The Economics of Horses, Penguins and Lemmings," Economics Working Papers 8610, University of California at Berkeley.
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