Are clusters and industrial  districts really driving sustainability innovation?

By: J-L. Hervas-Oliver, J. A. Márquez García, F. García-Chamizo, R. Rojas-Alvarado. Competitiveness Review, DOI: 10.1108/CR-06-2024-0109, August 2024.

Abstract: “Purpose – The purpose of this study is to explore and conducts a critical literature review to answer a fundamental question in the industrial district literature: are clusters and industrial (clusters/IDs) driving sustainability innovation? By intersecting different yet related strands of literature, the authors take stock of what the authors know about sustainability innovation in clusters/IDs. Design/methodology/approach – This paper reviews the literature for conceptualizing sustainability innovation in clusters/districts. Findings – Insights point out that the sustainability innovation process (development and diffusion) in clusters/IDs and their firms couples into mainstream cluster/IDs framework; clusters/IDs enable sustainability innovation through usual mechanisms, fostering collective change toward sustainability innovation, vis-à-vis other settings and strengthening firm sustainability innovation and performance. Sustainability innovation in clusters/IDs requires coupling different multi-scalar institutional systems effectively, and the cooperation of local organizations and policymakers for co-designing dedicated policies. Collective actions are important and firm heterogeneity needs to be considered in the clusters/IDs framework. Originality/value – This study is original because it provides state-of-the-art on sustainability innovation in clusters/districts, enabling the topic to advance in this direction. [ABSTRACT FROM AUTHORS]

Scientific and Technological Industrial Cluster as  Development Potential for the Future Economy

By: O. E. Pudovkina, O. S. Chechina, I. V. Korina, M. A. Brazhnikov. In: CEISD 2024, DOI: 10.1007/978-3-031-67372-6_18, August 2024.

Abstract: “In the current economic conditions, the cluster approach is relevant, since the most important advantages of clusters are their dynamism, flexibility and adaptability to changing market conditions. Clustering is important in the field of scientific and technological sphere in the industrial production. The research purpose is to develop methodological foundations for the formation of integrated organizational scientific and technological system in an industrial cluster. The authors identify some limitations for increasing the competitiveness of clusters in Russia, namely, there is a lack of organizational inter-subject cooperation ties and structural elements. The authors have developed an improved integrated model of a cluster as a scientific and technological system in the industrial production, consisting of ordered infrastructures. It is proposed, in addition to the existing basic subsystems, to include a complementary subsystem and a development mechanism. The functional tasks of each component of a cluster are outlined, where a special role is assigned to a coordination center, which will allow building optimal value chains for consumers and forming portfolios of relationships between the subjects of the cluster. Work on clusters confirmed the dominant position characteristic of the new economy through the advanced creation of high-level scientific and technological systems. The scientific results of the study complement and expand the theoretical and practical significance of scientific and technological cluster structures in the industrial production to improve their competitiveness.” [ABSTRACT FROM AUTHORS]

The conceptual foundations of research on the theory of  cluster development

By: B. Volodymyr, L. Andrii. Economics and Public Administration, DOI: 10.5281/zenodo.13292800, August 2024.

Abstract: “The article systematizes and summarizes scientific developments that have laid the conceptual foundations for the emergence and formation of the theory of cluster development. It also highlights the historical aspects of the development of cluster formations. It has been determined that the ideas and theses expressed by scientists over the past two centuries have formed a substantial scientific basis that explains the importance of cluster formation, primarily in the economic sphere, to enhance territorial-spatial and sectoral competitiveness. It is proven that existing scientific achievements lay the theoretical groundwork for the practical confirmation of the effectiveness of cluster formation. However, despite the success of cluster policies implemented in many countries worldwide, the functioning of international and regional cluster platforms and organizations, and the availability of numerous scientific works that have laid the foundation for the emergence and development of the theory of cluster development, there is still no comprehensive study on cluster formation. [ABSTRACT FROM AUTHORS]

Beyond “buzz”: knowledge interactions,  innovation, and neighborhood characteristics

By: N. Matsiuk, D. Doloreux, R. Shearmur. Journal of Economic Geography, DOI: 10.1093/jeg/lbae026, August 2024.

Abstract: “We examine the link between neighborhood characteristics, the importance of knowledge exchange, and firm innovation in Montreal. To this end we combine two sources of data: place-of-residence census data from Statistics Canada and the results of an original firm survey. Through principal component analysis and subsequent clustering, we define five types of neighborhoods. The results revealed that firms assign higher importance to local knowledge exchange when located in dense, walkable neighborhoods with higher educated residents. Knowledge exchange, both local and global, correlates with incremental and radical innovation. Moreover, firms are innovative in any neighborhood, provided they engage in knowledge exchange.” [ABSTRACT FROM AUTHORS]

Agglomeration and the Italian  North-South divide

By: L. Buzzacchi, A. De Marco, M. Pagnini. Journal of Economic Geography, DOI: 10.1093/jeg/lbae025, August 2024.

Abstract: “This article offers new evidence on agglomeration economies by examining the link between total factor productivity (TFP) and employment density in Italy. We investigate whether and how the TFP–density nexus contributes to explaining a relevant share of the marked productivity gap between the northern and the southern Italian regions. We estimate TFP for a large sample of manufacturing firms and then aggregate it at the level of local labour market areas. We tackle the endogeneity issues stemming from the presence of omitted covariates and reverse causation with an innovative set of diagnostic tests and an instrumental variable approach that relies on geological and historical data. Our estimate of the TFP elasticity to the spatial concentration of economic activities is about 0.045, a magnitude comparable to those measured for other developed countries. We also show that no significant heterogeneity emerges in the intensity of agglomeration economies across the country and that the positive TFP difference in favour of the firms located in the North is not due to the tougher competition taking place in those areas.” [ABSTRACT FROM AUTHORS]

Tech hubs within cities – determinants and dynamics

By: V. Hellwig. The Annals of Regional Science, DOI: 10.1007/s00168-024-01299-6, July 2024.

Abstract: “This paper explores the microgeographic determinants of firm birth activity and relocation patterns in the digital economy simultaneously. The study investigates the spatial dynamics of young firms within Berlin, Hamburg, and Munich using geo-coded data of firm births and relocation from 2009 to 2016 aggregated at a 1 × 1 km² grid level. The panel fixed effect regression models examine the impact of changes within persistent city structures on the location choices using several control variables. The findings suggest that firm clustering, commercial building density, and higher rent prices positively influence firm births, while the impact of knowledge institutions in the neighborhood is mixed. Relocation patterns highlight the role of proximity to competitors, with higher prices in areas not deterring relocations. These findings contribute to understanding firm location choices within cities by considering the two avenues of growth and highlight the future need for further investigations on the microgeography of firm growth dynamics.” [ABSTRACT FROM AUTHOR]

The drivers of intra- and interregional labor mobility over the industry  life cycle of the high-tech sector

By: J. Simonen, P. McCann, S. Karhinen, R. Svento. Journal of Regional Science, DOI: 10.1111/jors.12724, August 2024.

Abstract: “In this article, we analyze how industry- and region-specific characteristics influence individual-level decisions on mobility within and between regions during the life cycle of the industry. Using uniquely detailed panel-type data from the Finnish high technology sector, our analysis demonstrates that the influence of different regional features varies for different types of job changes and labor mobility and also according to the industry life cycle. We find that the classic agglomeration-type arguments regarding labor search and matching only really operate in the early growth stages of an industry life cycle. These patterns change throughout the various stages of the industry life cycle, although in quite different ways according to different factors, and understanding how these patterns change helps to provide a richer understanding of the labor market roles of agglomeration and clustering.” [ABSTRACT FROM AUTHORS]

Socio-technical dynamics of carbon dioxide capture and storage: A  systems view on enablers and barriers at North Sea Port

By: F. Swennenhuis, V. de Gooyert, H. C. de Coninck. International Journal of Greenhouse Gas Control, DOI: 10.1016/j.ijggc.2024.104201, August 2024.

Abstract: “Carbon dioxide capture and storage (CCS) is considered an option for energy-intensive industry to reduce its greenhouse gas emissions. Although it is well known that CCS faces technological, economic and societal challenges, how these challenges interact in a real-life industry has not yet been investigated collectively in a place-specific context. This study fills that gap by looking at the dynamic interactions between technological, economic and societal aspects, with the aim of clarifying enablers for and barriers to the implementation of industrial CCS in the North Sea Port industrial cluster, and identifying a course of action. The analysis was based on literature, interviews and group model building. By using group model building, expert stakeholders were brought together from industry, government and environmental non-governmental organizations. The participants built a qualitative model of the system dynamics of the implementation of industrial CCS in the North Sea Port industrial cluster jointly and on the spot. Enablers and barriers, such as costs, government's decisiveness and public support, are strongly interrelated. Public support plays a key role in multiple feedback loops in the system of industrial CCS implementation. The interdependence of societal and techno-economical elements needs to be acknowledged and responded to. There is need for transparent public engagement to build public support for CCS, and decisiveness and commitment from industry and government to transform that public support into successful and responsible CCS implementation.” [ABSTRACT FROM AUTHORS]

Adherence to governance patterns: How do institutional work and  knowledge dissemination influence the institutionalization of Brazilian  industrial clusters? 

By: M. Jacometti, S. Aparecido Gonçalves, L. Bonfim, L. C. de Oliveira. REVISTA BRASILEIRA DE GESTÃO DE NEGÓCIOS, DOI: 10.7819/rbgn.v26i02.4261, July 2024.

Abstract: “Purpose – This article examines how the institutional work of inducing agents and the dissemination of knowledge among induced immersed actors have influenced adherence to governance standards in Brazilian industrial clusters. Theoretical framework – We use institutional theory to frame the relationships between embedded firms through regulatory, normative, and cultural-cognitive pillars and the view of field-level agents engaged in institutional work, who share knowledge to induce adherence to governance standards. Design/methodology/approach – We adopted a mixed methods research design, examining 96 companies in three Brazilian industrial clusters. We used WABA analysis to test our model within and between clusters using one-way ANOVA tests, and we tested our hypotheses using correlations identified in t-tests between independent samples and multiple linear regression to build the model. Findings – The findings reveal that institutional work affects the dissemination of knowledge at multiple levels, influencing companies’ adherence to cluster governance standards. We show that less adherence to new governance standards can be explained by the lack of internalization of disseminated knowledge. The institutional structures that historically existed before the implementation of formal governance prevail over the new ones, since the knowledge disseminated in these clusters tends to maintain current economic and institutional conditions, with little support for the creation of new institutions. Practical &  social implications of research – Cognitive aspects of the internalization of explicit, effective, and institutional knowledge suggest that its dissemination influences firms’ adherence to the industrial cluster’s governance patterns. Originality/value – Little attention has been paid to how knowledge dissemination and institutional work can lead to the creation of and adherence to industrial cluster governance standards; and the dissemination of knowledge is more effective when social relations are included in the analysis model.” [ABSTRACT FROM AUTHORS]

Regional drivers of industrial decarbonization: a spatial econometric  analysis of 238 EU regions between 2008 and 2020

By: C. Vagnini, L. Canal Vieira, M.Longo, M.Mura. Regional Studies, DOI: 10.1080/00343404.2024.2380369, August 2024.

Abstract: “The European context of socio-economic integration and physical proximity likely plays an essential role in explaining the decarbonisation outcomes of industrial sectors. However, there is hardly any spatial regional analysis on CO2 emissions drivers in European countries. This study investigates the role of geographical space and regional determinants in industrial decarbonisation by analysing how socio-economic drivers and their interregional relationships impact industrial carbon emissions in European regions. We employ a spatial panel data econometric model to a novel panel dataset comprising 13 years (2008–20) of carbon emissions from hard-to-abate industrial sectors from 238 NUTS-2 regions across 27 European Union countries. Results indicate the presence of endogenous spatial interactions and high-time persistence between CO2-eq emissions in European Union regions. As such, industrial carbon emissions of regions follow similar patterns to their neighbours, supporting the evolutionary economic geography and growth theory assumptions of the spatial interaction of carbon emissions between regions. Furthermore, the use of a spatial econometric model illustrates the negative direct and spillover effects that higher levels of education and regional investment in research and development have on industrial CO2-eq emissions.” [ABSTRACT FROM AUTHORS]