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.

New growth of the Douro wine cluster

By: S. M. de Sousa Ostapenko, A. P. Africano, R. Meneses. Competitiveness Review, DOI: 10.1108/CR-02-2023-0034, February 2024.

Abstract: “Purpose – This study aims to further develop the CLC stage/path’s identification model that distinguishes between path’s emergence (emergence stage), path’s development (growth stage), path’s sustainment (maturity stage), path’s decline (decline stage) and path’s transformation (renewal stage), and by applying it, define the current stage/path of the Demarcated Douro Region (DDR) cluster. The Port wine industry, which is the dominant industry of the DDR cluster, is at the maturity/decline stage – is the same for the cluster itself? Design/methodology/approach – It is a case study with a longitudinal perspective based on the analysis of the dynamics of the parameters of cluster evolution using available secondary sources (cluster identity/brand; number of firms; number of employees; network; innovation; policies and regulations; and external markets – exports), especially addressing the past decade, that represent the stage of maturity/ decline of the cluster’s dominant Port wine industry. Findings – The conclusion is that since the 1990s the Demarcated Douro Region has gone through a “path transformation” where during the following 20 years new “anchors” for the cluster were gradually introduced, such as Doc Douro Wines, new forms of consumption of Port wine, tourism and olive oil. Since 2010 the cluster has entered a growth stage/(new) path’s development, where these “anchors” are in steady growth. The Douro brand is becoming more internationally recognized and established, the number of firms and employees is increasing, the network is restructuring with the creation of cluster-specific official institutions, innovation is especially reflected with increasing heterogeneity through diversification of the clusters into new activities and regulations and policies are supportive for expansion – all these parameters are indicating the rise of the new cycle for the cluster. Thus, the DDR cluster represents an attractive business environment and requires attention from regional policymakers to support the cluster’s development. Especially institutions have been highlighted as internal factors driving clusters growth, European integration as an external factor and firms’ strategies of diversification and internationalization as an appropriate de-locking mechanism for new path’s development. Research  limitations/implications – This research contributes to the CLC theory by further developing and applying a CLC stage/path identification model. It provides a better understanding of the dynamics of the DDR cluster that diverge from its dominant industry life cycle, which is relevant for regional policies and firms’ strategies. This study has its limitations. It provides an exploratory application of the theoretical framework proposed, and consequently, no general conclusions are possible yet. More empirical studies with different clusters in different stages are necessary to test the framework. Practical implications – These findings are useful to policymakers when designing their policies for cluster development but also for clusters’ entities and actors when making their strategic decisions as it allows based on the verification of the established parameter of CLC to identify its current stage/path of development.” [ABSTRACT FROM AUTHORS]

Inclusiveness of Tanzania’s  small-scale jewellers into global value chains: exploitation of artisanal  industrial clusters

By: H. K. Sama. Modern Supply Chain Research and Applications, DOI: 10.1108/MSCRA-10-2023-0044, March 2024.

Abstract: “Purpose – In developing countries like Tanzania, gems and jewellery industry mainly consists of disintegrated and unstable micro and small workshops which operate in a way that misalign value addition processes. This study is aimed to bridge gap by focussing on exploitation of industrial clusters in social normalisation and economic resilience to developing countries. The world economic shocks has been not only individually experienced but also globally shared while disrupted lives across all countries and communities and negatively affected global socio-economic growth. Design/methodology/approach – Furthermore, the explorative design was adopted in this study in order to explore needs of respondents, and with the aim to direct the study towards a descriptive design. The sample frame consists of participants in gems and jewellery activities in Tanzania whereby sample was drawn from Dar es Salaam and Arusha. Semi-structured interview was used to collect quantitative data to establish evidence of Tanzanians’ SSJs linked to global value chains (GVCs). Findings – Results revealed the benefits of exploitation of artisanal industrial clusters to Tanzanians’ SSJs when linked to global value chains (GVCs). Findings of the study demonstrate the importance of artisanal industrial clusters in facilitating Tanzanians’ SSJs to access GVCs. Further, insufficient education, trust and social protection directly affects inclusive GVCs, inferring that the impact of artisanal industrial clusters on inclusive GVCs in social normalisation and economic resilience. Research limitations/implications – Study findings reveals shortcomings in existing regulatory framework of linking Tanzanians’ SSJs to artisanal industrial clusters, for improvements to better support the inclusiveness in GVCs. Findings of this research invite interventions on institutional capabilities and entrepreneurial competencies to enhance the capabilities of small-scale jewellers (SSJs). Like other studies, this study involved cross-sectional data, limit targeted study population as representative of SSJs in industrial clusters and GVCs in economic crises at limited time. Practical implications – The study findings makes important practical contributions to the Tanzania’s SSJs by examining mediating role of artisanal industrial clusters hence informing policymakers of mining sector.” [ABSTRACT FROM AUTHOR]

Exploring the mechanisms of platform empowered cluster  development: evidence from the case of Taobao villages in rural China

By: H. Chu, R. Hassink, W. Liu. Regional Studies, DOI: 10.1080/00343404.2024.2306330, February 2024.

Abstract: “By studying a Chinese characteristic phenomenon, the expansion of Taobao villages at the county level, we coin the term ‘platform empowered cluster development’ (PECD). Based on cluster theory and empirical knowledge of Taobao villages, we analyse the pre-existing context, the process forces and outcome of Taobao village expansion in 50 counties with a fuzzy-set qualitative comparative analysis (fsQCA). The following four patterns of PECD are finally identified: A: local government driven without pre-existing context; B: pre-existing advantages driven without process forces; C: first-mover advantage, grassroots driven with locational advantage and D: dual driven without pre-existing context.” [ABSTRACT FROM AUTHORS]

The transformative potential of  inward investment on industrial cluster development: the case of the  semiconductor industry in Wales

By: M. Munday, R. Huggins, W. Cai, N. Kapitsinis, A. Roberts. European Planning Studies, DOI: 10.1080/09654313.2024.2319704, February 2024.

Abstract: “This paper examines the transformative potential of inward investment on cluster development. It undertakes this through the lens of the evolving semiconductor cluster in South Wales (UK) and within a context whereby the semiconductor industry is under pressure with government interventions to improve prospects being implemented at a time of increasing global tension in the industry. The paper reveals the potential of inward investors as agents of regional economic change and cluster development. It shows that the emerging South Wales cluster distinguishes itself in terms of investment motivation, commodities and services produced. These factors result in growing embeddedness in relation to elements such as joint research with higher education and intra-firm collaboration to develop new products and processes. The paper concludes that investments based on risky and fast-changing technologies in industries such as the semiconductor sector necessarily create challenges for policy makers. These are best managed by placing greater emphasis on developing the conditions to satisfy the needs of such knowledge-intensive industries in relation to labour market conditions, factor conditions and market access.” [ABSTRACT FROM AUTHORS]

The twin innovation transitions of European regions

By: G. Fazio, S. Maioli, N. Rujimora. Regional Studies, DOI: 10.1080/00343404.2024.2309176, March 2024.

Abstract: “We investigate the spatial distributions and transitions of European regions’ innovative orientation to information and communication technology (ICT), green technology or twin technologies. Using a transition probability approach and spatial methods, we estimate the probability of regions becoming innovative in either or both technologies and assess the role of spillovers. ICT-oriented regions are more likely to make a twin transition than the green-oriented regions, and non-innovative regions are likely to stay so. Weak and strong twin innovators are persistently clustered in space, with few positive spillovers on single innovators. Innovation policies should avoid supporting green innovation without also supporting ICT innovation and aim at increasing positive spatial spillovers.” [ABSTRACT FROM AUTHORS]

Internal versus external agglomartion advantages in investment location  choice: The role of global cities’ international connectivity

By: R. Belderbos, D. Castellani, H. S. Du, G. Ho Lee. Journal of International Business Studies, DOI: 10.1057/s41267-024-00686-7, March 2024.

Abstract: “Global location choices for foreign direct investments by MNCs aim to beneft both from the advantages of collocation with other activities of the frm (internal agglomeration) and the advantages of proximity to local industry clusters of similar activities (external agglomeration). We submit that there are important trade-ofs between internal and external agglomeration because internal knowledge transfer associated with collocation of various value-chain activities of the MNC is confronted with greater risk of knowledge spillovers to rival frms if there is a substantial local cluster. Moreover, we argue that the international connectivity of a location reduces the importance of local agglomeration as a driver of investment location decisions because connectivity allows the MNC to reap benefts from agglomeration at a distance through the (temporary) transfer of people and knowledge. Connectivity changes the trade-ofs between internal and external agglomeration because it enhances the spatial reach of internal agglomeration more than external agglomeration. The infuence of connectivity is greater for service-related value-chain activities than for production-related activities. We fnd support for these hypotheses in an analysis of 38,873 greenfeld cross-border investment decisions across diverse value-chain activities and industries in 71 global cities, 2008–2016.” [ABSTRACT FROM AUTHORS]

Policy-induced cooperative knowledge network, university-industry  collaboration and firm innovation: Evidence from the Greater Bay Area

By: Y. Zhao, Y. Yongquan, M. Jian, A. Lu, X. Xuanhua. Technological Forecasting & Social Change, DOI: 10.1016/j.techfore.2023.123143, March 2024.

Abstract: “The major goal of this paper is to analyze the interactive impact of China’s high-tech policies on university-industry (UI) collaboration and firm innovation by a network-based approach. Introducing high-tech policy to traditional innovative networks, we constructed a policy-induced UI collaboration network and applied social network analysis (SNA) method to empirically study the role of high-tech policies and the underlying mechanisms in firm innovation in the Greater Bay Area (GBA). This policy-induced innovative network consists of over 2000 innovative entities in GBA from 2012 to 2021, which reflects dynamic characteristics of innovative activities in this region. Based on this network, we find that high-tech policies play a positive and key role in regional innovation and we also clarify some potential mechanisms and routes in the effect of policies on UI collaboration and firm innovation. This paper advances our understanding of innovative networks and policy-induced regional innovation, which has implications for innovation policymaking in world-class innovative centers.” [ABSTRACT FROM AUTHORS]

The beer garden state: Neolocalism and clustering of craft breweries in  New Jersey

By: G. Fouad, R. H. Scott. Journal of Wine Economics, DOI: 10.1017/jwe.2023.37, February 2024.

Abstract: “This paper investigates the growth and clustering of craft breweries in New Jersey. We compiled a historical dataset from 1995 to 2020 that allows us to measure the degree of geographic clustering among craft breweries in New Jersey. The number of craft breweries in New Jersey grew 491% from 2012 to 2020 (from 22 to 130 craft breweries). An impetus for this growth was that New Jersey enacted legislation in 2012 that made opening and operating a craft brewery in the state more economically viable. Our analysis finds that craft breweries in New Jersey are clustering in specific parts of the state and that this is likely due to co-location benefits such as building a culture of craft beer that drives innovation, knowledge sharing, customer sharing, and a thicker labor market. While distinct craft beer clusters have formed in New Jersey, we find there is still significant opportunity for growth. Our analysis confirms this using data on planned craft brewery openings to measure changes in the size and density of clusters and where, in New Jersey, new clusters are likely to form.” [ABSTRACT FROM AUTHORS]

Brand on the run: place brands as judgement devices and sources of local  advantage in the music industry

By: P. Adler. Regional Studies, DOI: 10.1080/00343404.2024.2306326, March 2024.

Abstract: “Products from certain areas are assumed to share qualities by virtue of where they are made. This article considers the economic significance of such place brands in the wider market for symbolic goods. It forwards a theory of these as judgement devices, whereby place reputation serves to lower search costs in symbolic goods markets with excess supply. This theory is investigated through a study of an online music platform where a weak form of place branding is available to producers. Results suggest that branding is associated with musical success at the individual level and that place brands may act as strategic resources for producers from creative clusters. Branding effects do not necessarily depend on the content of the place brand signal (i.e., country acts branded from Nashville are not especially privileged) and may be based in simpler heuristic mechanisms where a listed origin is a stamp of quality or an aid in recognition.” [ABSTRACT FROM AUTHOR]