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.

Regional resilience during COVID-19: evidence from Colombian  exporting clusters

By: M. Dueñas, M. Campi. Regional Studies, DOI: 10.1080/00343404.2023.2282136, January 2024.

Abstract: “This study characterises the geography of Colombian exporters and their response to the COVID-19 crisis. We define exporting clusters within departments using bipartite network analysis and community detection tools. The methodology empirically detects product communities – groups of products that are strongly related – which are compared with an alternative taxonomy of industrial clusters, and clusters exporting firms by considering their exports within these taxonomies. We define these groups of specialised firms localised in departments as exporting clusters. We then examine whether belonging to an exporting cluster can enhance firms’ trade margins. We find that clusters do not automatically improve firms’ trade margins and that there are differences in how firms react to a crisis within clusters. Our analysis contributes to regional studies by shedding light on the potential of exporters’ agglomerations to navigate and recover from crises and outlining critical firm characteristics that can strengthen regional resilience.” [ABSTRACT FROM AUTHORS]

Optimizing digital transformation  paths for industrial clusters: Insights from a simulation

By: Y. Teng, J. Zheng, Y. Li, D. Wu. Technological Forecasting and Social Change, DOI: 10.1016/j.techfore.2023.123170, January 2024.

Abstract: “Digital technologies have revolutionised industrial clusters, implementing digital transformation without careful consideration can lead to higher risks and ineffective investments. However, the existing research often focuses on enterprises in a specific position, whereas the entire supply chain or end-to-end research is rarely conducted. To fill this gap, this study proposes a sectoral innovation system. It conducts a simulation model to study the digital transformation process by considering the behaviour, knowledge learning, and innovation of upstream and downstream enterprises in different cluster types. The simulation dynamically presents production and productivity changes during the transformation process of the entire industrial cluster. The results reveal that an orderly transformation path is the most effective for Marshallian clusters, whereas a simultaneous transformation works best for central satellite clusters. In addition, the social network simulation before and after the digital transformation of the two industrial clusters shows that enterprises in central-satellite clusters communicate more frequently during digital transformation, which is ultimately conducive to a better performance of the digital transformation of industrial clusters. These findings emphasise the need for tailored digital transformation strategies based on cluster type to maximise benefits, underscoring the importance of leading firms in industrial clusters. It also guides the government's industrial policy formulation and management enlightenment regarding the digital transformation of enterprises.” [ABSTRACT FROM AUTHORS]

High-Tech Clusters, Labor Demand, and Inequality: Evidence  from “Made in China 2025”

By: G. Park, K. Mane, A. Shen. SSRN, DOI: 10.2139/ssrn.4690944, January 2024.

Abstract: “This paper evaluates the impact of high-tech clusters on labor market inequalities by focusing on a place-based industrial policy called “Made in China 2025.” The policy targeted to attract high-tech firms to the industry clusters in the “pilot” cities by providing historical fiscal and regulatory incentives. Leveraging the staggered roll-out of the policy across the pilot cities and representative online job posting data, we conduct an eventstudy analysis to investigate the causal impacts of the high-tech clusters on job openings and wages across occupations and regions. We find that the policy led to a significant increase in job vacancies and offered wages in the pilot cities but with a widening wage gap between routine and non-routine occupations. This policy lowered job openings and wages in neighboring areas of the pilot cities in the short run, but they quickly recovered owing to the positive spillover effects of the high-tech clusters. We also demonstrate that building the high-tech clusters reduced the net income of routine job workers by substantially raising housing costs in the pilot cities. Our results suggest that policymakers should be cautious about occupational and regional inequalities when constructing high-tech clusters in developing countries.” [ABSTRACT FROM AUTHORS]

German – Algerian Cooperation:  Emergence of the Agro-Logistics Beverage Cluster

By: S. Timeridjine, A. Kaci. International Journal of Management Academy, DOI: 10.33712/mana.1306772, December 2023.

Abstract: “Globalization and the opening up of the Algerian market have led to the emergence of numerous partnerships with the European Union countries, particularly with Germany. A country that has been able to differentiate itself by relying on its networks of players and which has seen the emergence of numerous internationally renowned clusters, this experience is discussed in detail in this study. The success of this experience has enabled Algeria to play the role of a pivotal country, participating in the emergence of cooperation aimed at strengthening cross-sectoral coordination and local and national economic development through the establishment of cluster systems in Algeria. This contribution aims to provide an overview of the impact of German-Algerian cooperation under the DEVED-GIZ program, which is based on the establishment of clusters in Algeria as a tool for strengthening competitiveness and innovation within the country. To this end, we illustrate the case of the agro-logistics beverage cluster located in the wilaya of Bejaia, which represents a major axis of Algerian industrial policy.” [ABSTRACT FROM AUTHORS]

How intrafirm collaboration network influences a firm’s new  knowledge search? Longitudinal evidence from the US biotechnology industry

By: D. Nan. Journal of knowledge management, DOI: 10.1108/JKM-06-2022-0478, January 2024.

Abstract: “Purpose – This study aims to reveal the contribution mechanism of various types of intrafirm networks formed among inventors to firms’ searching for new knowledge. This study also intends to show how this mechanism is influenced by the geographic dispersion of inventors and the external alliance of firms. Design/methodology/approach – This study develops an analytical framework building on social network theory to explain the collective search among inventors within the firm. The authors validate the hypotheses using the data from 316 publicly traded biotechnology firms in the USA. Findings – As demonstrated by the findings, intrafirm network clustering facilitates the search for new knowledge. The geographic dispersion of inventors’ location has a negative moderating effect on this relation, whereas the number of alliance partners has a positive moderating effect on this relation. By contrast, the search for new knowledge is hampered by the intrafirm network average path length. The geographic dispersion of inventors positively moderates this relation, whereas a firm’s alliance partner number negatively moderates this relation. Originality/value – To the best of the authors’ knowledge, this study is the first to examine the joint effect of intrafirm networks, inventors’ geographic locations and external alliances on the new knowledge searching process. This study points out that new knowledge acquired through inventors’ geographic locations and alliance partners is internalized efficiently according to different types of internal networks.” [ABSTRACT FROM AUTHOR]

How to trigger and strengthen the positive impact of the internet on the  income of farmers in the region? A case from China

By: L. Li, L. Zheng, Z. Zhang, Y. Song. Electronic Commerce Research, DOI: 10.1007/s10660-023-09802-5, January 2024.

Abstract: “This paper explores how a region in a developing country can trigger and strengthen the positive impacts of the Internet on farmers’ income, using the case of flower and tree industry cluster in Shuyang County, Jiangsu Province, China. It finds that the combination of macro-level Internet popularization, micro-level Internet use, and local endowment conditions triggers the effect of the Internet on increasing farmers’ income. The case also shows that the continuous enhancement of this effect is essentially because internal supply can adapt to the continuous online migration of external demand and make creative adjustments, thereby achieving the cumulative fit of internal supply and external demand. This study can provide empirical evidence from China for the digital dividend issue in rural areas of developing countries, and provide a reference for developing countries to promote the role of the Internet in empowering farmers and increasing their incomes.” [ABSTRACT FROM AUTHOR]

The role of large corporations in entrepreneurial ecosystems – a case  study of Munich

By: S. Herzog, C. Mason, M. Hruskova. European Planning Studies, DOI: 10.1080/09654313.2023.2301295, January 2024.

Abstract: “Corporations are one of the most significant actors in entrepreneurial ecosystems. They are widely regarded as having a positive influence on local entrepreneurial activity. However, our study of Munich shows that they also have adverse effects, especially on entrepreneurial culture. We find that although corporations provide valuable resources into the entrepreneurial ecosystem, their conservative mindset, self-interested behaviour, and siloed activities negatively impact local entrepreneurial culture and undermine the community aspect of entrepreneurship. These adverse effects could be mitigated by corporations adopting agile practices when collaborating with disruptive start-ups, developing them into future business partners rather than a source of technical and business talent, and building ecosystem-wide networks with other actors. It is therefore essential that corporations are part of the leadership group of entrepreneurial ecosystems.” [ABSTRACT FROM AUTHORS]

Third places, the connective fibre of cities and high-tech  entrepreneurship

By: K. Credit, O. Kekezi, C. Mellander, R. Florida. Regional Studies, DOI: 10.1080/00343404.2023.2297083, January 2024.

Abstract: “Urban ‘third places’ foster informal interactions and face-to-face contact that is critical to the development of new innovations and start-up businesses. Our research utilises extensive microdata in combination with telephone interviews with over 200 start-up companies in Stockholm, Sweden. Our findings indicate that access to third places has a significant impact on the number of new high-tech start-ups (both by entrepreneur place of residence and work) in their vicinity. This suggests that third places play a demonstrable role in innovation and economic growth.” [ABSTRACT FROM AUTHORS]