A Life Cycle for Clusters?: The Dynamics of Agglomeration, by Kerstin Press

By Kerstin Press

This ebook stories the determinants of cluster survival via examining their adaptability to alter within the financial surroundings. Linking theoretic wisdom with empirical observations, a simulation version (based within the N/K technique) is constructed, and is the reason while and why the cluster's structure assists or hampers adaptability. it truly is came across that architectures with intermediate levels of department of work and extra collective governance varieties foster adaptability.

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Extra info for A Life Cycle for Clusters?: The Dynamics of Agglomeration, Change, and Adaption (Contributions to Economics)

Example text

As a consequence, more general insight into cluster dynamics can be obtained if approaches focus on the developments found at the local level and allow for more varied sources of change. Sect. 7 The first model argues that positive agglomeration externalities (agglomeration economies) lead to symbiotic processes where the growth of the local firm population reinforces itself. This growth is however constrained by location-intrinsic factors like infrastructure acting as habitat constraints. The critical mass of local firms for establishing a sufficient strength of the symbiotic processes is introduced by historical accident.

The main difference between the approaches of Sect. 4 then lies with the sources of change as well as the nature and modelling of agglomeration externalities. The problem with the existing approaches to cluster development in the context of the study pursued here lies in their determinism. To every type of event impacting on an existing cluster, there is only one response. Put differently, if the change benefits the cluster, it grows. Any challenge due to external developments is answered by a reduction of local economic activity.

As a consequence, no clear-cut distinction between them will be obtained. However, it is possible to delineate the concepts according to the emphasis placed on different agglomeration economies and the role of the local culture as well as the main firm activities affected by both (Sects. 4). What will emerge from the review of both the general mechanisms and the respective concepts proposed in the literature (Sect. 3) is that too great an emphasis has been placed on positive agglomeration effects while neglecting the role of negative externalities.

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