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.

FDI policy revisited: the role of  clusters

By: M. Götz, B. Jankowska. In Handbook of International Business Policy, DOI: 10.4337/9781035308682, April 2024.

Abstract: “Business digital transformation has wider consequences for shaping the attractiveness of host location. It implies growing relevance of new set of factors such as digital competencies, infrastructure, adequate skills, and so on. This chapter refers to the role of location for FDI in the new context of Industry 4.0. It analyses the role of clusters which provide specific locational advantages for foreign investors. In this sense, the chapter employs a descriptive approach developed by Ethridge. The authors try to speculate on how the realm of Industry 4.0 may affect the cluster-specific advantages for foreign investors and answer the question of how they perceive the attractiveness of clusters in that new reality. The novelty of this study is based on contrasting conceptual considerations focused on foreign direct investment and clusters with the aspects of Industry 4.0. The chapter contributes to the wider political and economic discourse embedded in reflections on the attractiveness of clusters for FDIs. By doing that, it adds to the understanding of links between cluster and FDI in the reality of Industry 4.0.” [ABSTRACT FROM AUTHORS]

Examining the dynamics of European renewable energy  clusters: insights into the technological collaboration

By: E. Sabbadin. European Planning Studies, DOI: 10.1080/09654313.2024.2342987, April 2024.

Abstract: “With an emphasis on the European Renewable Energy Clusters (RECs), the study examines the impact of local and global collaborations on technological competitiveness within RECs. Drawing on illustrative examples from wind and solar energy clusters in Europe, the research challenges the prevailing notion of the need for extensive global collaborations for innovation. Instead, it highlights the pivotal role of local collaborations and technologically homophile community ties in sustaining technological competitiveness within green high-tech clusters. The article contributes to the green-tech innovation and clusters literature by providing valuable insights into how companies in clusters engage in patent collaborations, particularly in the context of green energy technologies. The study spans the period from 1998 to 2018, offering a comprehensive analysis of collaborations in two mature renewable energies: wind and solar. It particularly investigates the Wind cluster in Navarra, Spain and the Munich Solar cluster in Germany.” [ABSTRACT FROM AUTHOR]

The possibilities of Cooperation among Family Firms within a  Cluster Environment

By: J. Staszewska, M. Smolarek, J. Foltys, D. Wotzka, P. Fracz. European Research Studies Journal, DOI: 10.35808/ersj/3375, April 2024.

Abstract: “Purpose: The aim of the article is to analyze the potential for effective implementation of clusters in the context of family businesses operating in the Polish market. Design/Methodology/Approach: The article seeks to address the question of whether and what are the possibilities of implementing clusters in the operations of Polish family firms. It investigates the factors contributing to the success or failure of cluster initiatives among family businesses. The hypothesis posited is that family firms in the Polish market operate in isolation, and exhibit limited willingness to collaborate, yet despite these constraints, they are capable of engaging in clusters as a solution to some of their market challenges. The research methodology comprised Computer-Assisted Telephone Interviews (CATI) and In-Depth Interviews (IDI) conducted in 2023 on a representative sample of 448 family firms. Findings: The article presents the results of research on family firms in Poland, focusing on their market situation, analysis of constraints, and opportunities for utilizing networks in the development of these enterprises. According to the research findings, the majority of family firms are not familiar with the cluster concept, but some have experience in operating within networks. Family firms demonstrate a weak willingness to collaborate with other entities, as they highly value their autonomy and independence. They are generally not interested in influencing regional strategy, workforce transfer, or collaboration with academic and research centers. Factors essential to the essence of clusters are rejected by these firms. Family firms attribute the failures of clusters to a lack of conviction in the cluster concept itself, top-down cluster stimulation, clusters emerging as a response to trends, lack of appropriate personnel, and a lack of communal action habits typical for clusters. Family firms recognize that access to markets, innovative technologies, and entrepreneurialism are the primary drivers of cluster success. However, the research results indicate that increased awareness of clustering stimulates actions that contribute to cluster success. Therefore, despite the family firms' distant approach to clusters, it is acknowledged that these firms need to be made aware of the necessity of forming clusters as a way out of isolation and focusing on their own activities. To this end, a cluster-building procedure tailored to family firms has been developed, as engaging in cluster collaboration can be an opportunity for the development of these firms. This has the potential for success because the pursuit of cost reduction is one of the main benefits of participating in a cluster, and family firms are interested in this aspect. Practical  Implications: Current market trends, along with prevailing quality requirements, increase the significance of clusters in shaping growth and development processes based on a set of criteria grounded in sustainability attributes. Consequently, the analysis of cluster utilization not only becomes a topical research issue but also a practical tool supporting the enduring and sustainable development of these firms. Originality/Value: While numerous studies have focused on family firms and their management, relatively few of these studies have addressed the potential application of clusters by family firms. The research undertaken has yielded insights into the clustering of family firms, identifying causes of failures as well as the benefits of collaboration, which may serve as a valuable source of information, utilized, among other contexts, in the decisionmaking process regarding engagement in long-term agreements. In this regard, the present article seeks to fill a gap in the realm of cluster formation by family firms. [ABSTRACT FROM AUTHORS]

Industrial clusters and carbon emission reduction: evidence from China

By: Y. Liu, Y. Wu, X. Zhu. The Annals of Regional Science, DOI: 10.1007/s00168-024-01268-z, May 2024.

Abstract: “In the context of carbon peaking and neutrality goals, this paper examines the impact of industrial clusters on firms’ carbon emissions based on listed manufacturing firms in China from 2008 to 2020. To avoid the endogeneity issue, we constructed an industrial cluster database ten years earlier than the sample period. The results of the empirical analysis suggest that industrial clusters are conducive to decreasing carbon emissions. The stronger the industrial cluster, the lower the carbon intensity. Examining the channel reveals that industrial clusters have an emission reduction effect through digital transformation. The heterogeneity analysis demonstrates that the variations in industrial clusters, including pollutant emissions, energy intensity, and energy consumption structure, significantly affect a firm’s carbon emission reduction performance. In addition, environmental policies and the internal and external green development impetus of firms also affect emission reduction behavior. Our findings provide the rationale for governments to promote green transformation and enhance digital competitiveness through industrial cluster development.” [ABSTRACT FROM AUTHORS]

Towards Sustainable Prosperity?  Policy Evaluation of Jiangsu Advanced Manufacturing Clusters

By: T. L. Xu, Y. Hu. Technology in Society, DOI: 10.1016/j.techsoc.2024.102583, May 2024.

Abstract: “The government of China, to hone manufacturing’s competitive edge, has adopted a series of regional industrial policies to stimulate advanced manufacturing clusters as facilitators of agglomeration effects, utilisers of factor endowments, and implementers of innovation solutions, by playing the role of facilitating state. Focusing on advanced manufacturing cluster policies in East China’s Jiangsu Province, the research employs a mixed data analysis methodology on a sample of 52 documents collected from the Jiangsu government and affiliated units. The policy orientations and priorities are examined under the triple analytical framework in terms of themes, instruments, and controls, applying textual mining and the PMC index model. The results reveal the alignment of policy themes with high-quality development strategy, the government preferences for the supply dimension in policy instruments, the emphasis on planning directive in policy controls, together with the relatively high internal consistency of the AMC policy toolkit by Jiangsu. Therefore, the research spotlights the importance of leveraging comparative strengths based upon the facilitating state institution, and of deploying internally coherent, scientific, and efficient initiatives that exploit more potential of advanced manufacturing clusters to foster sustainable prosperity from the perspective of New Structural Economics.” [ABSTRACT FROM AUTHORS]

A patent mining approach to accurately identify innovative industrial  clusters based on multivariate DBSCAN algorithm

By: W. Lin, T. Wang, Z. Chen, R. Xiao. Energy Research & Social Science, DOI: 10.2139/ssrn.4811589, April 2024.

Abstract: “Innovative Industrial Clusters (IIC), characterized by the geographical aggregation and technological collaboration among technology enterprises and institutions, serve as pivotal drivers of regional economic competitiveness and technological advancements. Prior research on cluster identification, crucial for IIC analysis, has predominantly emphasized geographical dimensions while overlooking technological proximity. Addressing these limitations, this study introduces a comprehensive framework incorporating multiple indices and methods for accurately identifying IIC using patent data. To unearth latent technological insights within patent documents, Latent Dirichlet Allocation (LDA) is employed to generate topics from a collection of terms. Utilizing the applicants' names and addresses recorded in patents, an Application Programming Interface (API) map systems facilitates the extraction of geographic locations. Subsequently, a Multivariate Density-Based Spatial Clustering of Applications with Noise (MDBSCAN) algorithm, which accounts for both technological and spatial distances, is deployed to delineate IIC. Moreover, a bipartite network model based on patent geographic information collected from patent is constructed to analyze the technological distribution on geography and development mode of IIC. The utilization of the model and methodologies are demonstrated through a case study on China flexible electronics industry (FEI). Findings reveal that the clusters identified via this novel approach are significantly correlated with both technological innovation and geographical factors. Moreover, the MDBSCAN algorithm demonstrates notable superiority over other algorithms in terms of computational precision and efficiency, as evidenced by the case analysis.” [ABSTRACT FROM AUTHORS]

Assessing the role of technological districts in regional innovation  policies: a network analysis of collaborative R&D projects

By: A. De ludicibus, L. Prota, F. Savoia. The Journal of Technology Transfer, DOI: 10.1007/s10961-024-10088-4, May 2024.

Abstract: “As highlighted in systemic approaches to innovation, regions play an increasingly important role in designing and implementing place-based innovation policies. A wide debate has emerged on the limits and validity of different policy models, for example, between “platform” and “district-based” approaches or between a “corporatist” and an “evolutionary” Triple Helix. Within the EU Cohesion Policy framework, a number of technological districts (TDs) have been established since 2005 in the Italian “Convergence” regions to foster competitiveness, innovation, and research industry linkages. TDs have become critical actors in knowledge and technology transfer processes, and a significant amount of funding has been devoted to their development in the National Operational Programme for Research and Competitiveness (PON-R&C). In this work, we use methods drawn from social network analysis to locate TDs within the wider collaboration networks established through the PON-R&C programme. We highlight the specificity of TDs within the general policy and assess their ability to promote organisational and sectoral heterogeneity among project participants. We find that different network architectures coexist under the same policy umbrella and relate this variety to the ideal models identified in the literature.” [ABSTRACT FROM AUTHORS]

How digitalization and information technology adoption affect firms’  innovation performance: evidence from Chinese automotive firms

By: F. Zhou, S. Xu. European Journal of Innovation Management, DOI: 10.1108/EJIM-09-2023-0788, April 2024.

Abstract: “Purpose – This study aims to explore how the application of digital technology and information technology can help firms improve their innovation performance and examines the mediating mechanisms of supply chain agility and supply chain integration. Design/methodology/approach – This study conducted a questionnaire survey of 320 business managers in an automotive cluster in China and analyzed the collected data using structural equations. Findings – Digital technology applications (DTA) have a positive impact on innovation performance, while supply chain agility and integration mediate this impact. In addition, information technology applications (ITA) also has a positive impact on innovation performance, while supply chain agility and integration mediate between the two. Supply chain agility (SCA) and supply chain integration (SCI) significantly enhance the positive impact of technology adoption on firms’ innovation performance. Originality/value – This study confirms the impact of digital technology and information technology applications on innovation performance and explores the mediating role played by supply chain agility and integration.” [ABSTRACT FROM AUTHORS]