This monthly selection of articles is been carried out by Philippe Gugler and Basile de Raemy, from the Center for Competitiveness, University of Fribourg. The entire selection, carried out since 2013, can be consulted on the academic articles page of our web.

You are a cluster: Now what? The future of a Medtech cluster

By: D. McKernan, O. McDermott. Journal of Open Innovation: Techology, Market, and complexity, DOI: 10.1016/j.joitmc.2023.100168, November 2023.

Abstract: “This paper illustrates how an industrial cluster can be created when there is little established industry from which the cluster can evolve. Industrial clusters are known to give firms superior performance by improving the competitiveness of regions. There is significant debate on effective strategies to create new industrial clusters. Incorporating evidence from a systematic literature review supported by quantitative data this study demonstrates that an industrial cluster can be created without a preestablished industrial base. The medical device cluster in Galway, Ireland is used for the study. The results show how government policies supported the cluster’s creation. The engagement of key institutions and stakeholders improved the competitive factors in a self-reinforcing cycle. Using a theoretical model, the growth of the cluster is explained. The paper suggests measures to assess the health of a cluster and identifies the importance of geographic location. Policies to improve a cluster need to be focused on closely bounded regions and not dispersed.” [ABSTRACT FROM AUTHORS]

Questioning the Cluster Imperative:  Why Danish Craft Breweries Choose not to Cluster Geographically, and What (not)  to Do About It

By: J. Lindgaard Christensen, P. Houman Andersen. In: The Geography of Beer, DOI: 10.1007/978-3-031-39008-1_7, December 2023.

Abstract: “We investigate location factors of craft beer firms in the North Jutland region of Denmark and find that firms are located far away from each other rather than agglomerate. Traditional theories on firm location better explain these location patterns compared to theories that prescribe that small, resource-constrained firms should cluster to leverage knowledge exchange and other agglomeration advantages when they source knowledge for innovation and business development. We contribute to the constructive criticism of the universal application of the idea of clusters in regional development policy. We discuss unique features of the beer market and products that explain why firms in this industry seem to abstain from clustering. We forward the proposition of breweries simultaneously locating according to a ‘sharing of market’ logic and still pursuing knowledge exchange activities through ‘temporary clustering’; however, the latter being located away from the physical production facilities.” [ABSTRACT FROM AUTHORS]

The adoption and impact of  Internet-based technological innovations on the performance of the industrial  cluster firms

By: M. Oluwaseun Olomu, G. Oluwafunmilayo Binuyo, T. Oyedepo Oyebisi. Journal of Economy and Technology, DOI: 10.1016/j.ject.2023.11.004, December 2023.

Abstract: “Knowledge-driven economy tends to enjoy tremendous technological transformation due to rapid advances in new technologies, which have given rise to a disruptive technological revolution known as the “Industry 4.0 or Fourth Industrial Revolution (4IR)” with profound impacts on firms. The adoption of Internet-based technological innovations (IBTI) indicates a critical paradigm shift that transforms the status quo by which firms’ relationships are built across borders, compete in markets, interact with their customers and ensures the flow of economic benefits. However, there is limited study known in the literature to have assessed the adoption dynamics and phenomena of IBTI in industrial clusters, and also the evidence on the impact of the technological innovations on the performance of industrial clusters in Nigeria are scarce. The results show that despite the low level of investment and expenditure on Internet-based systems and infrastructure in the Nigerian fast-moving consumer goods clusters, the adoption of IBTI have beneficial effects on firms’ capabilities and growth, customer relationships, product/service features and firm’s reputation. Holistically, the study reveals that the level of the adoption of IBTI is significantly low as the fast-moving consumer goods firms still currently utilize a combination of IBTI with internally owned IT systems in operations. This is an indication that the fast-moving consumer goods industry is still a late majority adopter of the disruptive technologies. This poses a threat to the industry, especially in this era of 4IR. Thus, the Nigerian industrial sector needs to be proactive and keep up with the rising use of disruptive and digital technologies, so as to maintain their competitive advantage.” [ABSTRACT FROM AUTHORS]

Innovation systems, value chains and industrial clusters in developing  economies: Case of Jalandhar’s sport goods industry

By: S. Mehta. African Journal of Science, Technology, Innovation and Development, DOI: 10.1080/20421338.2023.2266193, December 2023.

Abstract: “The paper explores the relationship between innovation systems (IS) and participation in value chains (VCs) to understand the challenges concerning upgrading of an industrial cluster in a developing country. It is argued that the inter-linkages of various actors, organizations and institutions at one or more levels (MLs), viz., micro level (local), meso level (national) and macro level (global) led the firms in the industrial cluster to participate in one or more VCs, i.e., local, regional and global VCs, upgrading the cluster over time, which we termed as ‘Cluster Upgrading System’ (CUS). In this context, a case of one of the oldest industrial cluster producing sports goods in Jalandhar, India is examined. The analysis is based upon the information gathered through a primary survey of 45 firms. It was found that the cluster is largely labour intensive in nature and is facing challenges of competing with both low-cost clusters and technological advanced clusters, raising fears of it slipping into a low value-added trap. We found a lack of inter-linkages amongst firms, and their relationship with training and financial institutes that hampers mutual learning for upgrading the whole cluster, indicating some necessary policy implications.” [ABSTRACT FROM AUTHOR]

Unlocking the Dynamics of Innovation Clusters: Sectoral Impacts and  Organisational Capabilities

By: S. Kovács. Quality Innovation Prosperity, DOI: 10.12776/QIP.V27I3.1916, November 2023.

Abstract: “Purpose: This article explores innovation clusters, analysing their operation, the impact of sectoral factors, and their role in regional economic growth. It highlights the intersection of sectoral effects, organisational capabilities, and collaboration dynamics within clusters, providing insights for policymakers and businesses seeking development opportunities. Methodology/Approach: The research methodology involves a literature review, quantitative survey, factor analysis, cluster analysis, and correlation analysis to explore the relationships between sectoral effects, organisational capabilities, and collaboration within innovation clusters. Findings: The findings suggest that sector-specific effects influence cluster members' strategic and innovation capabilities. Technological complexity is predominant, impacting market orientation and product development capabilities. The article also identifies four distinct groups of organisations based on sectoral impacts and export activities within clusters. Research Limitation/implication: While the methodology provides valuable insights, there is potential sampling bias as non-random sampling via cluster manager recommendations may introduce selection bias. The findings are specific to Hungarian innovation clusters and may not be generalised universally. Originality/Value of paper: The uniqueness of this study lies in its holistic and data-driven exploration of innovation clusters, considering a wide range of factors and their practical implications for fostering collaboration and innovation in different industries.” [ABSTRACT FROM AUTHOR]

Investment analysis of the formation of a digital platform of a  cluster-type industrial ecosystem

By: A. Babkin, P. Mikhailov. In: E3S  Web of Conferences, DOI: 10.1051/e3sconf/202345804005, December 2023.

Abstract: “The article discusses the theoretical provisions in the field of digital platforms formation, their key features and their classification is presented. The key differences between the concepts of industrial ecosystems and industrial clusters, as well as the relationship between them, are revealed. The main advantages of digital platforms have been studied in the form of reducing or completely eliminating territorial and temporary barriers, reducing transaction costs, and the possibility of creating additional value for goods and services, thereby creating a competitive advantage for companies. The approaches to assessing the effectiveness of the introduction of a digital platform in an enterprise by considering this process as an investment project, as well as the impact on the company's activities as a whole and evaluating the qualitative improvements of the changing business process are considered. The study of the obtained results of the application of these approaches to assess the effectiveness of the digital platform in a real enterprise operating in the market of specialized services. The introduction of the digital platform proved to be effective both from the point of view of the investment project for the company and from the point of view of improving the company's activities as a whole. In addition, the digital platform allowed the company to qualitatively improve the company's business processes according to a number of performance indicators developed taking into account the specifics of the implemented platform.” [ABSTRACT FROM AUTHORS]

Impact of marine industrial agglomeration on the  high-quality development of the marine economy – A case study of China’s  coastal areas

By: R. Zhang, Q. Gao, K. Gao. Ecological Indicators, DOI: 10.1016/j.ecolind.2023.111410, December 2023.

Abstract: “Although the high-quality development of the marine economy has become a new paradigm to explore sustainable development in China, the path to its realization remains unclear. One path being explored in China is industrial agglomeration, but whether industry clustering leads to high-quality development of the marine economy has not been fully explored. Thus, the impact of industrial agglomeration on the marine economy deserves further investigation. This study first establishes a five-dimensional index system (innovation, coordination, greenness, openness, and inclusivity) to gauge the quality of marine economic development and then applies a hybrid method to evaluate each dimension. Furthermore, from an industry perspective, this study explores the influence mechanism of marine industry agglomeration on the high-quality development of China’s marine economy from several dimensions. The results show that (1) different regions have significantly different development levels, and the growth rates vary across each dimension. (2) From a broad standpoint, marine industry clustering has greatly promoted high-quality economic development in four sectors: innovation, coordination, openness, and inclusivity. However, its impact on green development has a time lag. (3) From the perspective of geographical heterogeneity, the impact of industry clustering is insignificant in the Bohai Rim region, positive in the South China Sea region, and negative in the Yellow Sea and East China Sea. Our study can enrich the research in this field and provide reference for the development of marine industry and marine economy in coastal areas.” [ABSTRACT FROM AUTHORS]

New collaborations and novel innovations: the role of  regional brokerage and collaboration intensity

By: K. Kim, D. F. Kolger, M. Coda Zabetta. European Planning Studies, DOI: 10.1080/09654313.2023.2291087, December 2023.

Abstract: “In this paper, we investigate the role of brokers in the regional innovation network and its influence on innovative and collaborative outcomes. For this purpose, we make use of data from the European Patent Office and Eurostat in the period 1986 – 2015. We first build the regional collaboration network based on co-inventorship ties, and then we identify the brokerage roles played by each region, using the original taxonomy proposed by Gould and Fernandez (1989), to disentangle their impact on innovation and collaboration. Finally, we investigate regional collaboration intensity and how it interacts with brokerage roles, highlighting its mediating effect. Our findings indicate that

brokerage roles contribute to the extension of collaboration networks, but also that they are not efficient for the creation of innovation. Collaboration intensity, on the other hand, enhances both innovation and collaborative outcomes and shows how a region can benefit from being a broker.” [ABSTRACT FROM AUTHORS]