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Cluster Innovation Along the Industry Lifecycle


  • Andreas Eisingerich

    (Tanaka Business School, Imperial College London)

  • Oliver Falck

    (Ifo Institute for Economic Research and CESifo)

  • Stephan Heblich

    () (Max Planck Institute of Economics)

  • Tobias Kretschmer

    (Institute for Communication Economics, LMU Munich)


Industrial clusters develop regionally along the industry's lifecycle and typically exist over many product generations. In order to maintain their innovativeness, they have to develop and adjust along the industry lifecycle. We conduct 142 depth face-to-face interviews in clusters across two continents to examine the drivers of a cluster's innovativeness along the industry lifecycle. The results from our interviews suggest that the impact of key drivers of cluster innovativeness change depending on the stage of a cluster's underlying industry lifecycle. Classifying clusters as either being adolescent (information technology, biotechnology) or mature (automotive, chemicals), our regression analyses show a changing influence of cluster patterns along the industry lifecycle on a firm's innovativeness. Specifically, we analyze the impact of interorganizational network strength, openness, university collaboration, and intrapreneurship on radical innovation across adolescent and mature clusters. Implications for research and policy makers are discussed.

Suggested Citation

  • Andreas Eisingerich & Oliver Falck & Stephan Heblich & Tobias Kretschmer, 2008. "Cluster Innovation Along the Industry Lifecycle," Jena Economic Research Papers 2008-070, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2008-070

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    More about this item


    Cluster; Industry Lifecycle; Innovation;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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