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Industrial dynamics and clusters: a survey

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  • K. Frenken
  • E. Cefis
  • E. Stam

Abstract

We review the literature on clusters and their effects on entry, exit and growth of firms as well on the evolutionary dynamics underlying the process of cluster formation. Our extensive review shows that there is strong evidence that clusters promote entry, but little evidence that clusters enhance firm growth and firm survival. The emergence of clusters is best understood as an evolutionary process of capability transmission between parent firms and their spinoffs, rather than as an outcome of localisation economies that would increase the performance firms in clusters compared to firms outside clusters. From a number of open questions we distil various future research avenues stressing the importance of understanding firm heterogeneity and the exact mechanisms underlying localisation economies.

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  • K. Frenken & E. Cefis & E. Stam, 2013. "Industrial dynamics and clusters: a survey," Working Papers 13-11, Utrecht School of Economics.
  • Handle: RePEc:use:tkiwps:1311
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    Cited by:

    1. Marco Capasso & Elena Cefis & Koen Frenken, 2016. "Spatial Differentiation in Industrial Dynamics. The Case of the Netherlands (1994–2005)," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 107(3), pages 316-330, July.
    2. Andrea Morrison & Ron Boschma, 2017. "The spatial evolution of the Italian motorcycle industry (1893-1993): KlepperÕs heritage theory revisited," Papers in Evolutionary Economic Geography (PEEG) 1707, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2017.
    3. Elekes, Zoltán & Juhász, Sándor & Gyurkovics, János, 2016. "A tudáshálózatok időbeli változásának vizsgálati lehetőségei
      [A new perspective for examining change in knowledge networks over time]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1375-1388.
    4. Lu, Ren & Ruan, Min & Reve, Torger, 2016. "Cluster and co-located cluster effects: An empirical study of six Chinese city regions," Research Policy, Elsevier, vol. 45(10), pages 1984-1995.
    5. Fan, Xiao-chao & Wang, Wei-qing, 2016. "Spatial patterns and influencing factors of China׳s wind turbine manufacturing industry: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 482-496.
    6. Bastien Bernela & Marie Ferru & Marc-Hubert Depret, 2017. "When genesis shapes cluster life cycle? Applying mixed method on a French cluster case study," Working Papers halshs-01616929, HAL.
    7. repec:taf:eurpls:v:24:y:2016:i:12:p:2097-2112 is not listed on IDEAS
    8. F.C. Stam & Ben Spigel, 2016. "Entrepreneurial Ecosystems," Working Papers 16-13, Utrecht School of Economics.
    9. Jeroen Content & Koen Frenken, 2016. "Related variety and economic development: a literature review," European Planning Studies, Taylor & Francis Journals, vol. 24(12), pages 2097-2112, December.
    10. repec:kap:jtecht:v:42:y:2017:i:3:d:10.1007_s10961-016-9508-1 is not listed on IDEAS

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    Keywords

    entry; exit; industrial cluster; localisation economies; product lifecycle; industry lifecycle; evolutionary economic geography; firm heterogeneity;

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