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.

Unleashing the power of clustering:  a qualitative study of cluster organizations’ role in advancing green  transformation

By: M. Mackiewicz, D. Kuberska Competitiveness Review, DOI: 10.1108/CR-03-2023-0069, April 2024.

Abstract: “Purpose – The purpose of this study is to ascertain how cluster organisations have been fostering green transformation in Poland. Design/methodology/approach – This paper adopts a multiple case study approach. Data collection methods involved in-depth interviews with cluster organisation managers and researchers to identify support measures for green transformation and to investigate the factors influencing their actions as well as a comprehensive analysis of documents, including cluster organisations‘ strategies. Findings – Cluster organisations manage and participate in actions that create favourable conditions for pursuing low-carbon and circular economy ventures. They not only assist their members in overcoming obstacles related to green transformation but also engage non-members – which can lead to spillovers reaching beyond their borders. Their engagement takes place across all phases of the green transformation process. Research limitations/implications – For various reasons, the research was designed as qualitative to understand the opinions and experiences of various actors engaged in green transformation within cluster organisations’ ecosystems. The key factor influencing this decision stems from the fact that knowledge of the involvement of cluster organisations in supporting green transformation still needs to be completed and scattered. The limitations of the study include limited access to information and the fact that qualitative research allows for a certain amount of subjectivity, and the results should be generalised carefully.Moreover, the interviews were carried out with a non-random sample of participants. Another limitation of the study is related to biased views, which could have been shared by interviewees acting as representatives of the studied cluster organisations. Practical  implications – Cluster organisations have emerged as drivers of circular transition by promoting sustainable practices such as material recycling, biological recovery and parts harvesting. These initiatives contribute to reducing waste, conserving resources, and minimising the environmental footprint of industries. These organisations can be active agents of transformation, orchestrating collaborative efforts that have a far-reaching impact on industries and economies. Originality/value – This is one of the first and most comprehensive studies on the role of cluster organisations in Poland in supporting green transformation. This paper identifies and systematises the actions undertaken to provide a clear understanding of the internal processes within cluster organisations.” [ABSTRACT FROM AUTHORS]

The role of clusters in advancing Industry 4.0 solutions: insights  from the Polish automotive context

By: M. Mackiewicz, M. Götz. Digital Policy, Regulation and Governance, DOI: 10.1108/DPRG-07-2023-0098, April 2024.

Abstract: “Purpose - This study is exploratory in nature and designed to address poorly documented issues in the literature. The dimensions of regional distribution or spatial organisation of Industry 4.0 (I4.0), including the potential role of clusters, have only recently been addressed, with most available studies focusing on advanced, mainly Western European countries. Although developing fast, the literature on I4.0 in other countries, such as the Central and Eastern European or post-transition economies like Poland, needs to pay more attention to the spatial distribution or geographical and organisational aspects. In response to the identified knowledge gap, this paper aims to identify the role of clusters in the transformation towards I4.0. This explains why clusters may matter for advancing the fourth digital transformation, how advanced in implementing I4.0 solutions are the residents of Polish clusters and how they perceive the advantages of cluster membership for such implementation. Finally, it seeks to formulate policy recommendations based on the evidence gathered. Design/methodology/approach  - The methodology used in this study combines quantitative analysis of secondary data from a cluster benchmarking survey with a case study approach. The benchmarking survey, conducted by the polish agency for enterprise development in 2021, gathered responses from 435 cluster members and 41 cluster managers, representing an estimated 57% of the current clusters in Poland. In addition to quantitative analysis, a case study approach was used, incorporating primary sources such as interview with cluster managers and surveys of cluster members, as well as secondary sources like company documents and information from cluster organisation websites. Statistical analysis involved assessing the relationship between technology implementation and the adoption of management systems, as well as exploring potential correlations between technology use and company characteristics such as revenue, export revenue share and number of employees using Pearson correlation coefficient. Findings  - In Poland, implementing I4.0 technologies by cluster companies is still modest. The cluster has influenced the use of I4.0 technologies in 23% of surveyed companies. Every second surveyed company declared a positive impact of a cluster on technological advancement. The use of I4.0 technologies is not correlated with the revenue of clustered companies. A rather bleak picture emerges from the results, revealing a need for more interest among cluster members in advancing I4.0 technologies. This may be due to a comfortable situation in which firms still enjoy alternative competitive advantages that do not force them to seek new advanced advantages brought about by I4.0. It also reflects the sober approach and awareness of associated high costs and necessary investments, which are paramount and prevent successful I4.0 implementation. Research limitations/implications - The limitations inherent in this study reflect the scarcity of the available data. This paper draws on the elementary survey administered centrally and is confined by the type of questions asked. The empirical section focuses on an important, though only one selected sector of the economy – the automotive industry. Nevertheless, the diagnosis of the Polish cluster’s role in advancing I4.0 should complement the existing literature. Practical implications - The exploratory study concludes with policy recommendations and sets the stage for more detailed studies. Amidst the research’s limitations, this study pioneers a path for future comprehensive investigations, enabling a deeper understanding of Polish clusters’ maturity in I4.0 adoption. By comparing the authors’ analysis of the Polish Automotive Group (PGM) cluster with existing literature, the authors uncover a distinct disparity between the theoretical prominence of cluster catalysis and the current Polish reality. Future detailed dedicated enquiries will address these constraints and provide a more comprehensive map of Polish clusters’ I4.0 maturity. Originality/value - This study identifies patterns of I4.0 implementation and diagnoses the role of clusters in the transformation towards I4.0. It investigates how advanced is the adoption of I4.0 solutions among the residents of Polish clusters and how they perceive the advantages of cluster membership for such transformation. Special attention was paid to the analysis of the automotive sector. Comparing the conclusions drawn from the analysis of the Polish PGM cluster in this case study to those from the literature on the subject, it becomes clear that the catalytic role of clusters in the implementation of I4.0 technologies by enterprises, as emphasised in the literature, is not yet fully reflected in the Polish reality.” [ABSTRACT FROM AUTHORS]

A model for understanding industry cluster development among  New World wineries

By: S. Lembke, L. Cartier, J. Fountain, N. Cradock-Henry, L-P. Dana. International Journal of Entrepreneurship and Small Business, DOI: 10.1504/IJESB.2024.137755, April 2024.

Abstract: “This paper proposes a cluster management model that is grounded in Porter's diamond framework and cluster thinking. This exploratory research examines secondary sources to understand the presence and development of clusters in two New World wine regions over two time periods (2000-2008 and 2009-2014). Whilst different in development trajectories and focus, and impacted by very different legislative frameworks, both wine regions displayed high quality strategic alignment during their inception stage but this deteriorated over time. The authors suggest that if the emerging lack of strategic alignment had been identified early, addressing it may have limited or halted the deterioration. This research introduces a pragmatic tool for industry assessment of cluster strength and decision making that is easy to use for regional development practitioners. Such an applied tool is valuable in agricultural clusters where challenges posed by climate change, the globalisation of markets, or the massive disruption caused by a global pandemic requires increasingly rapid cluster adaptation.” [ABSTRACT FROM AUTHORS]

Unveiling the impact of foreign investment entry in industrial clusters:  the case of Castelló and Sassuolo

By: F. Belussi, L. Martínez-Cháfer, F. X. Molina-Morales. European Planning Studies, DOI: 10.1080/09654313.2024.2307339, March 2024.

Abstract: “This paper explores the impact of foreign investment, through acquisitions and mergers of local firms, on leading industrial clusters. While previous research has highlighted the increasing involvement of cluster firms in internationalization and knowledge globalization, the role of foreign investment requires further investigation. Power asymmetries between MNEs and partner firms are prevalent in global value chains, joint ventures, and strategic alliances, shaping the contemporary global economy. By analysing two clusters specialized in ceramic tile production (Castelló, Spain, and Sassuolo, Italy), this study aims to evaluate the impact of foreign investment on leading clusters, specifically distinguishing between multinational enterprises (MNEs) and investment funds. The research examines the perceived effects through a qualitative analysis, capturing the subjective impressions of local actors involved in acquired firms, independent local firms, technological suppliers, and supporting institutions. This paper contributes to the literature by addressing contradictory findings and providing insights into the balance between knowledge absorption and spillovers from MNEs or investment funds to local firms.” [ABSTRACT FROM AUTHORS]

Poverty reduction and migration in  rural Vietnam: Role of local firm clusters

By: P. T. Thanh, K. Saito. Review of development Economics, DOI: 10.1111/rode.13098, March 2024.

Abstract: “Firm clusters are considered as a contributing factor to local economic development. However, there are limited studies on the effect of firm clusters on the wellbeing of rural communities, particularly in terms of income improvement, poverty reduction, and migration. Our research aims to shed light on these relationships at both the household and commune levels. For empirical analysis, we employ the propensity score matching method to mitigate endogeneity bias. Our results reveal the role of firm clusters in increasing income and reducing poverty. Firm clusters also contribute to decreasing labor emigration and attracting immigrants. However, the magnitude of these impacts is relatively small, with moderate effects on income and modest effects on poverty and migration. In particular, firm clusters reduce the commune poverty rate by around 2.36%–2.51% and enhance household annual income by approximately 16.46–17.08 million VND (725–752 USD). Furthermore, analyses at the household level highlight the significance of larger clusters in improving household income. Our research underscores policy implications for rural development with a specific emphasis on firm clusters.” [ABSTRACT FROM AUTHORS]

Transitioning or tinkering at a net-zero economy?  Introducing an assessment framework for industrial cluster decarbonisation in  the United Kingdom 

By: C. Ogwumike, A. Akponeware, A. Oyewole, H. Dawood, R. Pinedo-Cuenca, J. Ling-Chin, A. P. Roskilly, N. Dawood. Energy Research & Social Science, DOI: 10.1016/j.erss.2024.103459, April 2024.

Abstract: “Decarbonising industrial clusters globally is crucial in combating climate change and is integral to the United Kingdom's ambition of achieving a net-zero economy by 2050. The absence of holistic frameworks that provide a nuanced understanding of the broad spectrum of mitigation options for decarbonising industrial clusters, coupled with a deficiency in real-world empirical evaluations, present a substantial barrier in realising set targets for reducing CO2 emissions. The increasing fragmentations in industrial decarbonisation frameworks further exacerbates the challenge of identifying the necessary and sufficient actions for achieving optimal industrial decarbonisation and net-zero transitioning. This paper proposes an assessment framework for industrial cluster decarbonisation and aims to address the existing gaps, particularly in the assessment of social, economic, and environmental impact of any deployed technology. Focusing on a wide range of technologies, sectoral strategies, and regional dynamics, the proposed framework is driven by specific key performance indicators and a comprehensive human and data-driven analytical approach that reflects descriptive, diagnostic, and prescriptive insights on the Teesside industrial cluster in the United Kingdom. Following the validation of the proposed assessment framework, empirical findings from 30 in-depth semi-structured interviews, two workshops, focus group meetings and the literature on industrial decarbonisation reveal that the framework recognises the complex interplay of technology and decision-making in the transition to net-zero of industrial clusters. The article concludes that the proposed assessment framework can assist stakeholders, policymakers, and researchers in assessing the impacts of energy transition, which is critical to policy design and decision-making while also contributing to achieving sustainable decarbonisation goals.” [ABSTRACT FROM AUTHORS]

The role of industrial clustering: from layoff to self-employment after  the Chinese state-owned enterprise reform

By: Y. Zhang, K. Chen. Applied Economics Letters, DOI: 10.1080/13504851.2024.2332538, March 2024.

Abstract: “It is generally agreed upon that industrial clustering can stimulate the formation of new businesses. However, the role of industrial clustering in the transition from layoff to self-employment is rarely investigated. This study exploits the Chinese State-Owned Enterprise Reform as a policy shock to employment, for examining whether laid-off workers are more inclined to be self-employed in regions with highly developed industrial clustering. The empirical results first reveal that prefectures with a higher SOE workers ratio in 1995 experienced a larger increase in the new entry of self-employed households in the following years. Following that, we further detect the heterogeneous effect of regions with and without clusters. The results illustrate that the reform increased the number of new self-employed households in regions with industrial clusters, and the effect is insignificant in prefectures without industrial clusters. This study implies adopting a cluster-based development strategy in transitioning countries could alleviate the negative effect of mass unemployment.” [ABSTRACT FROM AUTHORS]

Industrial cluster and knowledge creation: a bibliometric analysis and  literature review

By: R. Tarazona, D. García-Hurtado, C. Deceve, V. E. Hoffmann. Multidisciplinary Journal for Education Social and Technological Sciences, DOI: 10.4995/muse.2024.21344, April 2024.

Abstract: “The interaction between the development of industrial clusters and knowledge generation has become a fundamental element in driving innovation systems. Examining industrial clusters in knowledge creation terms is interesting for policymakers, investors, businesses, and academia. This article provides a thematic and intellectual overview of the existing scientific literature on industrial clusters, their evolution, and their relationship with knowledge creation. The aim is to identify the scientific literature foundations in this area, different intellectual, conceptual, and social structures, and trends in the research field. The study is a bibliometric analysis, whose results show that researchers’ topics of interest have considerably evolved over the last four decades. Initially, most studies focus on policies for efficient clusters management and later, starting in the 2010s, they evolve towards the importance of the networks of resources and knowledge that clusters provide, and how to promote learning and innovation as a key activity for economic development.” [ABSTRACT FROM AUTHORS]