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Cluster policy, innovation, and firm productivity: An econometric assessment of the Flemish Spearhead Cluster Program

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Listed:
  • Angelino, Pierluigi
  • Czarnitzki, Dirk
  • Volckaert, Astrid

Abstract

The Flemish government launched its Spearhead Cluster (SHC) policy in 2017. The aim is to boost strategic sectors by setting up cluster initiatives which coordinate collaborative R&D initiatives. In this paper, we analyze whether becoming a member of such a cluster initiative has an impact on the Total Factor Productivity (TFP) of the firm. We exploit firm-level data between 2013 and 2020 to estimate TFP and apply a difference-in-differences approach to assess the programs' treatment effects. We find that becoming a member of a cluster has an average positive impact on firmlevel TFP of between 1 to 4.4 percent, depending on the econometric specification. These results are the first to provide an insight into the impact of the Flemish SHC policy on productivity.

Suggested Citation

  • Angelino, Pierluigi & Czarnitzki, Dirk & Volckaert, Astrid, 2024. "Cluster policy, innovation, and firm productivity: An econometric assessment of the Flemish Spearhead Cluster Program," ZEW Discussion Papers 24-031, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:300010
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    References listed on IDEAS

    as
    1. Amel Ben Abdesslem & Raphaël Chiappini, 2019. "Cluster policy and firm performance: a case study of the French optic/photonic industry," Regional Studies, Taylor & Francis Journals, vol. 53(5), pages 692-705, May.
    2. Daniel A. Ackerberg & Kevin Caves & Garth Frazer, 2015. "Identification Properties of Recent Production Function Estimators," Econometrica, Econometric Society, vol. 83, pages 2411-2451, November.
    3. Máté Pecze, 2020. "The benefits of membership in policy-stimulated clusters in Hungary," European Planning Studies, Taylor & Francis Journals, vol. 28(8), pages 1493-1512, August.
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    Keywords

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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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