IDEAS home Printed from https://ideas.repec.org/p/mar/magkse/202001.html
   My bibliography  Save this paper

The role of R&D-intensive clusters for regional competitiveness

Author

Listed:
  • Reinhold Kosfeld

    () (University of Kassel)

  • Timo Mitze

    (Southern University of Denmark)

Abstract

Modern cluster theory provides reasons for positive external effects that accrue from the interaction of spatially proximate firms operating in common and related fields of economic activity. In this paper, we examine the impact of R&D-intensive clusters as a key factor of regional competitiveness on productivity and innovation growth. In analogy to the industry-oriented concepts of related and unrelated variety (Frenken, Van Oort, Verburg 2007), we differentiate between effects of cluster specialisation and diversity. The identification of R&D-intensive clusters is based on a hybrid approach of qualitative input-output analysis and spatial scanning (Kosfeld and Titze 2017). Our empirical study is conducted for a panel of German NUTS-3 regions in 2001-2011. To comprehensive account for specialisation and diversity effects of clustering we adopt a spatial econometric approach, which allows us to identify these effects beyond the geographical boundaries of a single region. After controlling for regional characteristics and unobserved heterogeneity, a robust ‘cluster strength’ effect (i.e. specialization) on productivity growth is found within the context of conditional convergence across German regions. With regard to the underlying mechanisms, we find that the presence of a limited number of R&D-intensive clusters in specific technological fields is most strongly linked to higher levels of regional productivity growth. While we also observe a positive effect of cluster strength on innovation growth once we account for spatial spillovers, no significant effects of ‘cluster diversity’ can be identified. This indicates that some but not all cluster-based regional development strategies are promising policy tools to foster regional growth processes.

Suggested Citation

  • Reinhold Kosfeld & Timo Mitze, 2020. "The role of R&D-intensive clusters for regional competitiveness," MAGKS Papers on Economics 202001, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    • Handle: RePEc:mar:magkse:202001
    as

    Download full text from publisher

    File URL: http://www.uni-marburg.de/fb02/makro/forschung/magkspapers/paper_2020/01-2020_kosfeld.pdf
    File Function: First 202001
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Luciana Lazzeretti & Silvia Rita Sedita & Annalisa Caloffi, 2014. "Founders and disseminators of cluster research," Journal of Economic Geography, Oxford University Press, vol. 14(1), pages 21-43, January.
    2. Karl Aiginger & Stephen W. Davies, 2004. "Industrial specialisation and geographic concentration: Two sides of the same coin? Not for the European Union," Journal of Applied Economics, Universidad del CEMA, vol. 7, pages 231-248, November.
    3. Florax, Raymond & Folmer, Henk, 1992. "Specification and estimation of spatial linear regression models : Monte Carlo evaluation of pre-test estimators," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 405-432, September.
    4. Michael Porter, 2003. "The Economic Performance of Regions," Regional Studies, Taylor & Francis Journals, vol. 37(6-7), pages 549-578.
    5. Timothy F. Slaper & Karter M. Harmon & Barry M. Rubin, 2018. "Industry Clusters and Regional Economic Performance: A Study Across U.S. Metropolitan Statistical Areas," Economic Development Quarterly, , vol. 32(1), pages 44-59, February.
    6. Kowalewski Julia, 2013. "Inter-industrial Relations and Sectoral Employment Development in German Regions," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 233(4), pages 486-504, August.
    7. Michele Coscia & Timothy Cheston & Ricardo Hausmann, 2017. "Institutions vs. Social Interactions in Driving Economic Convergence: Evidence from Colombia," CID Working Papers 331, Center for International Development at Harvard University.
    8. Jose Claudio Pires & Tulio Cravo & Simon Lodato & Caio Piza, 2013. "Industrial Clusters and Economic Performance in Brazil," OVE Working Papers 0513, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
    9. Folta, Timothy B. & Cooper, Arnold C. & Baik, Yoon-suk, 2006. "Geographic cluster size and firm performance," Journal of Business Venturing, Elsevier, vol. 21(2), pages 217-242, March.
    10. Jung Won Sonn & In Kwon Park, 2011. "The Increasing Importance of Agglomeration Economies Hidden behind Convergence," Urban Studies, Urban Studies Journal Limited, vol. 48(10), pages 2180-2194, August.
    11. Reinhold Kosfeld & Mirko Titze, 2017. "Benchmark Value-added Chains and Regional Clusters in R&D-intensive Industries," International Regional Science Review, , vol. 40(5), pages 530-558, September.
    12. Delgado, Mercedes & Porter, Michael E. & Stern, Scott, 2014. "Clusters, convergence, and economic performance," Research Policy, Elsevier, vol. 43(10), pages 1785-1799.
    13. Andy Stirling, 2007. "A General Framework for Analysing Diversity in Science, Technology and Society," SPRU Working Paper Series 156, SPRU - Science Policy Research Unit, University of Sussex Business School.
    14. Ragnitz, Joachim, 2007. "Explaining the East German productivity gap: the role of human capital," Kiel Working Papers 1310, Kiel Institute for the World Economy (IfW).
    15. Federico Cingano & Fabiano Schivardi, 2004. "Identifying the Sources of Local Productivity Growth," Journal of the European Economic Association, MIT Press, vol. 2(4), pages 720-742, June.
    16. Mercedes Delgado & Michael E. Porter & Scott Stern, 2016. "Defining clusters of related industries," Journal of Economic Geography, Oxford University Press, vol. 16(1), pages 1-38.
    17. Henderson, J. Vernon, 2003. "Marshall's scale economies," Journal of Urban Economics, Elsevier, vol. 53(1), pages 1-28, January.
    18. Rothgang, Michael & Cantner, Uwe & Dehio, Jochen & Engel, Dirk & Fertig, Michael & Graf, Holger & Hinzmann, Susanne & Linshalm, Enikö & Ploder, Michael & Scholz, Anne-Marie & Töpfer, Stefan, 2015. "Accompanying evaluation of the funding instrument "Spitzencluster-Wettbewerb" (Leading-Edge Cluster Competition) of the federal ministry of education and research. Final report - Summary," RWI Materialien 90, RWI - Leibniz-Institut für Wirtschaftsforschung.
    19. Jan Fagerberg, 2003. "Schumpeter and the revival of evolutionary economics: an appraisal of the literature," Journal of Evolutionary Economics, Springer, vol. 13(2), pages 125-159, April.
    20. Baltagi, Badi H. & Bresson, Georges & Pirotte, Alain, 2003. "Fixed effects, random effects or Hausman-Taylor?: A pretest estimator," Economics Letters, Elsevier, vol. 79(3), pages 361-369, June.
    21. repec:brs:ecchap:02 is not listed on IDEAS
    22. Rita Almeida, 2007. "Local Economic Structure and Growth," Spatial Economic Analysis, Taylor & Francis Journals, vol. 2(1), pages 65-90.
    23. Andrew Crawley & Malcolm Beynon & Max Munday, 2013. "Making Location Quotients More Relevant as a Policy Aid in Regional Spatial Analysis," Urban Studies, Urban Studies Journal Limited, vol. 50(9), pages 1854-1869, July.
    24. Sara Cruz & Aurora Teixeira, 2010. "The Evolution of the Cluster Literature: Shedding Light on the Regional Studies-Regional Science Debate," Regional Studies, Taylor & Francis Journals, vol. 44(9), pages 1263-1288.
    25. Gianni Guastella & Francesco Timpano, 2016. "Knowledge, innovation, agglomeration and regional convergence in the EU: motivating place-based regional intervention," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 36(2), pages 121-143, October.
    26. Robert Dekle, 2002. "Industrial Concentration And Regional Growth: Evidence From The Prefectures," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 310-315, May.
    27. Camagni, Roberto, 2002. "On the concept of territorial competitiveness: sound or misleading?," ERSA conference papers ersa02p518, European Regional Science Association.
    28. Andrew Bell & Malcolm Fairbrother & Kelvyn Jones, 2019. "Fixed and random effects models: making an informed choice," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(2), pages 1051-1074, March.
    29. Max-Peter Menzel & Dirk Fornahl, 2010. "Cluster life cycles--dimensions and rationales of cluster evolution," Industrial and Corporate Change, Oxford University Press, vol. 19(1), pages 205-238, February.
    30. Thomas Brenner & Andreas Gildner, 2006. "The long-term Implications of Local Industrial Clusters," European Planning Studies, Taylor & Francis Journals, vol. 14(9), pages 1315-1328, June.
    31. Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
    32. 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.
    33. Michael E. Porter, 2000. "Location, Competition, and Economic Development: Local Clusters in a Global Economy," Economic Development Quarterly, , vol. 14(1), pages 15-34, February.
    34. de Lucio, Juan J. & Herce, Jose A. & Goicolea, Ana, 2002. "The effects of externalities on productivity growth in Spanish industry," Regional Science and Urban Economics, Elsevier, vol. 32(2), pages 241-258, March.
    35. Max Nathan & Henry Overman, 2013. "Agglomeration, clusters, and industrial policy," Oxford Review of Economic Policy, Oxford University Press, vol. 29(2), pages 383-404, SUMMER.
    36. Roberto Camagni, 2002. "On the Concept of Territorial Competitiveness: Sound or Misleading?," Urban Studies, Urban Studies Journal Limited, vol. 39(13), pages 2395-2411, December.
    37. Dan O'Donoghue & Bill Gleave, 2004. "A Note on Methods for Measuring Industrial Agglomeration," Regional Studies, Taylor & Francis Journals, vol. 38(4), pages 419-427.
    38. Elicia Maine & Daniel Shapiro & Aidan Vining, 2010. "The role of clustering in the growth of new technology-based firms," Small Business Economics, Springer, vol. 34(2), pages 127-146, February.
    39. Gregory Spencer & Tara Vinodrai & Meric Gertler & David Wolfe, 2010. "Do Clusters Make a Difference? Defining and Assessing their Economic Performance," Regional Studies, Taylor & Francis Journals, vol. 44(6), pages 697-715.
    40. Andergassen, Rainer & Nardini, Franco & Ricottilli, Massimo, 2017. "Innovation diffusion, general purpose technologies and economic growth," Structural Change and Economic Dynamics, Elsevier, vol. 40(C), pages 72-80.
    41. Frank Mcdonald & Qihai Huang & Dimitrios Tsagdis & Heinz Josef Tuselmann, 2007. "Is There Evidence to Support Porter-type Cluster Policies?," Regional Studies, Taylor & Francis Journals, vol. 41(1), pages 39-49.
    42. Ron Martin & Peter Sunley, 2003. "Deconstructing clusters: chaotic concept or policy panacea?," Journal of Economic Geography, Oxford University Press, vol. 3(1), pages 5-35, January.
    43. Stéphane Maraut & Hélène Dernis & Colin Webb & Vincenzo Spiezia & Dominique Guellec, 2008. "The OECD REGPAT Database: A Presentation," OECD Science, Technology and Industry Working Papers 2008/2, OECD Publishing.
    44. Tian, Zheng, 2013. "Measuring Agglomeration Using the Standardized Location Quotient with a Bootstrap Method," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 43(2).
    45. Ian Smith & Zoltan J. Acs & Felix R. FitzRoy, 2002. "High-technology employment and R&D in cities: Heterogeneity vs specialization," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 36(3), pages 373-386.
    46. Mirko Titze & Matthias Brachert & Alexander Kubis, 2011. "The Identification of Regional Industrial Clusters Using Qualitative Input-Output Analysis (QIOA)," Regional Studies, Taylor & Francis Journals, vol. 45(1), pages 89-102.
    47. Edward Feser & Stuart Sweeney & Henry Renski, 2005. "A Descriptive Analysis of Discrete U.S. Industrial Complexes," Journal of Regional Science, Wiley Blackwell, vol. 45(2), pages 395-419, May.
    48. Nazrul Islam, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 1127-1170.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Reinhold Kosfeld & Mirko Titze, 2014. "Benchmark Value Added Chains and Regional Clusters in German R&D Intensive Industries," MAGKS Papers on Economics 201437, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    2. Matthias Firgo & Peter Mayerhofer, 2015. "Wissens-Spillovers und regionale Entwicklung - welche strukturpolitische Ausrichtung optimiert des Wachstum?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 144, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    3. Matthias Firgo & Peter Mayerhofer, 2015. "Wissensintensive Unternehmensdienste, Wissens-Spillovers und regionales Wachstum. Teilprojekt 1: Wissens-Spillovers und regionale Entwicklung – Welche strukturpolitische Ausrichtung optimiert das Wach," WIFO Studies, WIFO, number 58342, August.
    4. Karl Aiginger & Matthias Firgo, 2015. "Regional Competitiveness Under New Perspectives. WWWforEurope Policy Paper No. 26," WIFO Studies, WIFO, number 58501, August.
    5. Nils Grashof & Dirk Fornahl, 2020. "To be or not to be located in a cluster? A descriptive meta-analysis of the firm-specific cluster effect," Working Papers on Innovation and Space 2020-01, Philipps University Marburg, Department of Geography.
    6. Lee, Yong-Jin Alex & Jang, Seongsoo & Kim, Jinwon, 2020. "Tourism clusters and peer-to-peer accommodation," Annals of Tourism Research, Elsevier, vol. 83(C).
    7. Jing Chen, 2020. "The Impact of Cluster Diversity on Economic Performance in U.S. Metropolitan Statistical Areas," Economic Development Quarterly, , vol. 34(1), pages 46-63, February.
    8. Julia Hoffmann & Stefan Hirsch & Johannes Simons, 2017. "Identification of spatial agglomerations in the German food processing industry," Papers in Regional Science, Wiley Blackwell, vol. 96(1), pages 139-162, March.
    9. Mirko Titze & Matthias Brachert & Alexander Kubis, 2011. "Local and regional knowledge sources of industrial clusters - methodical aspects in a multidimensional framework for cluster identification," ERSA conference papers ersa10p709, European Regional Science Association.
    10. Beaudry, Catherine & Schiffauerova, Andrea, 2009. "Who's right, Marshall or Jacobs? The localization versus urbanization debate," Research Policy, Elsevier, vol. 38(2), pages 318-337, March.
    11. Matthias Duschl & Tobias Scholl & Thomas Brenner & Dennis Luxen & Falk Raschke, 2015. "Industry-Specific Firm Growth and Agglomeration," Regional Studies, Taylor & Francis Journals, vol. 49(11), pages 1822-1839, November.
    12. Pinto, Hugo & Cruz, Ana Rita & Combe, Colin, 2015. "Cooperation and the emergence of maritime clusters in the Atlantic: Analysis and implications of innovation and human capital for blue growth," Marine Policy, Elsevier, vol. 57(C), pages 167-177.
    13. Illy, Annette & Hornych, Christoph & Schwartz, Michael & Rosenfeld, Martin T. W., 2009. "Urban Growth in Germany – The Impact of Localization and Urbanization Economies," IWH Discussion Papers 19/2009, Halle Institute for Economic Research (IWH).
    14. Lee, Chang-Yang, 2018. "Geographical clustering and firm growth: Differential growth performance among clustered firms," Research Policy, Elsevier, vol. 47(6), pages 1173-1184.
    15. Thomas Brenner, 2017. "Identification of Clusters - An Actor based Approach," Working Papers on Innovation and Space 2017-02, Philipps University Marburg, Department of Geography.
    16. R. Paci & S. Usai, 2006. "Agglomeration economies and growth-The case of Italian local labour systems, 1991-2001," Working Paper CRENoS 200612, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    17. Robert Huggins & Piers Thompson, 2015. "Entrepreneurship, innovation and regional growth: a network theory," Small Business Economics, Springer, vol. 45(1), pages 103-128, June.
    18. Eri Yamada & Tetsu Kawakami, 2015. "Assessing dynamic externalities from a cluster perspective: the case of the motor metropolis in Japan," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(1), pages 269-298, January.
    19. Randall Jackson, 2015. "Fellows Address: Are Industry Clusters and Diversity Strange Bedfellows?," Working Papers Working Paper 2015-04, Regional Research Institute, West Virginia University.
    20. Amélia Branco & João Carlos Lopes, 2013. "The Economic Performance of Clustered and Non Clustered Firms along the different Phases of the Cluster Life Cycle: The Portuguese Cork Industry Case," Working Papers Department of Economics 2013/26, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.

    More about this item

    Keywords

    Industry clusters; regional competitiveness; cluster specialisation; cluster diversity; correlated random effects model;
    All these keywords.

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mar:magkse:202001. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bernd Hayo). General contact details of provider: http://edirc.repec.org/data/vamarde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.