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

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  • Mario A. Maggioni

    (Catholic University of Milan)

Abstract

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.

Suggested Citation

  • Mario A. Maggioni, 2004. "The rise and fall of industrial clusters: Technology and the life cycle of region," Working Papers 2004/6, Institut d'Economia de Barcelona (IEB).
  • Handle: RePEc:ieb:wpaper:doc2004-6
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    References listed on IDEAS

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    Cited by:

    1. Adriana GÃŽRNEA?? & Mihaela MA?CU (UDA), 2014. "Development Discrepancies Between Western And Eastern Eu Countries: A Statistical Analysis Of Textile And Apparel Clusters," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 8(1), pages 434-442, November.
    2. Bergman, Edward M., 2007. "Cluster life-cycles: an emerging synthesis," SRE-Discussion Papers 2007/04, WU Vienna University of Economics and Business.
    3. Ron Martin & Peter Sunley, 2011. "Conceptualizing Cluster Evolution: Beyond the Life Cycle Model?," Regional Studies, Taylor & Francis Journals, vol. 45(10), pages 1299-1318, November.
    4. M. Nicotra & M. Romano & M. Giudice, 2014. "The Evolution Dynamic of a Cluster Knowledge Network: The Role of Firms’ Absorptive Capacity," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 5(2), pages 240-264, June.
    5. Thomas Brenner & Charlotte Schlump, 2011. "Policy Measures and their Effects in the Different Phases of the Cluster Life Cycle," Regional Studies, Taylor & Francis Journals, vol. 45(10), pages 1363-1386, November.
    6. Julien Cusin & Elodie Loubaresse, 2015. "L’interclustering. De la communauté de pratique aux réseaux d’innovation," Post-Print hal-03235818, HAL.
    7. Davis F. Taylor & Chad R. Miller, 2010. "Rethinking local business clusters: the case of food clusters for promoting community development," Community Development, Taylor & Francis Journals, vol. 41(1), pages 108-120, January.
    8. Gurrieri, Antonia Rosa, 2013. "Networking entrepreneurs," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 47(C), pages 193-204.

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    More about this item

    Keywords

    Agglomeration diseconomies; Agglomeration economies; Industrial clusters; Technological dynamics;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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