This monthly selection of articles is been carried out by Philippe Gugler and Samuel Ferreira Gomes, 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.

Ensuring product quality: luxury clusters in cognac and leather

By: B. Blancheton, M. Hlady-Rispal, Regional Studies, DOI: 10.1080/00343404.2020.1800626, 2020.

Abstract: “This paper analyses the theoretical and empirical specificities of clusters in luxury industries. These clusters are rooted in rich traditional regions and differ from classic clusters through unique projects based on excellence and ‘artification’. We use a comparative case study of two French luxury clusters: spirits in Cognac and leather in Périgord-Limousin, Nouvelle-Aquitaine, to examine the attributes that are unique to a particular luxury cluster. Interviews with actors for their perceptions of the effects of agglomeration show that quality guarantee is perceived as the most important effect of agglomeration in luxury clusters”. [ABSTRACT FROM AUTHORS]

Innovation catalysts: how multinationals reshape the global geography of  innovation

By: R. Crescenzi, A. Dyèvre, F. Neffke. LSE, Department of Geography and Environment, Geography and Environment Discussion Paper Series, Paper No. 7, 2020.

Abstract: “We study whether and when Research and Development (R&D) activities by foreign multinationals help in the formation and development of new innovation clusters. Combining information on nearly four decades worth of patents with socio-economic data for regions that cover virtually the entire globe, we use matched difference-in-differences estimation to show that R&D activities by foreign multinationals have a positive causal effect on local innovation rates. This effect is sizeable: foreign research activities help a region climb 14 percentiles in the global innovation ranks within five years. This effect materializes through a combination of knowledge spillovers to domestic firms and the attraction of new foreign firms to the region. However, not all multinationals generate equal benefits. In spite of their advanced technological capabilities, technology leaders generate fewer spillovers than technologically less advanced multinationals. A closer inspection reveals that technology leaders also engage in fewer technological alliances and exchange fewer workers in local labor markets abroad than less advanced firms. Moreover, technology leaders tend to set up their foreign R&D activities in regions with relatively low absorptive capacity. We attribute these differences to that fact that the trade-off between costs and benefits of local spillovers a multinational faces depends on the multinational’s technological sophistication. This illustrates the importance of understanding corporate strategy when analyzing innovation clusters.” [ABSTRACT FROM AUTHORS]

The geography of knowledge revisited: geographies of KIBS use by a new  rural industry

By: R. Shearmur, D. Doloreux, Regional Studies, DOI: 10.1080/00343404.2020.1800628, 2020.

Abstract: “It is difficult to define, let alone locate, knowledge. Research in regional studies suggests that cities are the focus of knowledge-intensive business services (KIBS), attract knowledge workers, and concentrate research and development (R&D) and universities: the implication is that knowledge is created in and diffused from urban centres. We suggest this may be a consequence of only studying knowledge that is relevant to, and used by, city-based industries: a growing number of researchers show that some types of knowledge are generated in non-urban or small-town clusters. This study focuses on the geography of KIBS (a proxy for knowledge inputs) used by Canadian winemakers (an emerging sector located in rural areas). After questioning what is meant by ‘knowledge’, we show that services incorporating knowledge of different types are sourced from different types of location. We conclude that there is no single geography of knowledge: for winemakers, different types of knowledge are sourced from cities, wine regions and also dispersed non-urban areas.” [ABSTRACT FROM AUTHORS]

Тhe Geography of  Unconventional Innovation

By: E. Berkes, R. Gaetani, The Economic Journal, ueaa111, 2020.

Abstract: “Using a newly assembled dataset of U.S. patents, we show that innovation activity is less concentrated in high-density locations than commonly believed. Yet, inventions based on atypical combinations of knowledge are indeed more prevalent in high-density urban centers. To interpret this relation, we propose that informal interactions in densely populated areas help knowledge flows between distant fields but are less relevant for flows between close fields. We build a model of innovation in a spatial economy that endogenously generates the pattern observed in the data: specialized clusters emerge in low-density areas, whereas high-density locations diversify and produce unconventional ideas.” [ABSTRACT FROM AUTHORS]

The Geography of Innovation and Development: Global Spread and Local  Hotspots

By: R. Crescenzi, S. Iammarino, C. Ioramashvili, A. Rodríguez-Pose, M. Storper. LSE, Department of Geography and Environment, Geography and Environment Discussion Paper Series, Paper No. 4, 2020.

Abstract: “Through successive industrial revolutions, the geography of innovation around the globe has changed radically, and with it the geography of wealth creation and prosperity. Since the Third Industrial Revolution, high incomes are increasingly metropolitan, leading to a renewal of inter-regional divergence within countries. These metropolitan areas are also hotbeds of innovation. At the same time, global networks for the production and delivery of goods and services have expanded greatly in recent decades. The globalization of production is mirrored in the globalization of innovation. The paper argues that the emerging geography of innovation can be characterised as a globalized hub-to-hub system, rather than a geography of overall spread of innovation and illustrates these trends using patent data. Although much attention has been given to explaining the rise and growth of innovation clusters, there is as yet no unified framework for the micro-foundations of the agglomeration and dispersion of innovation. In addition, there appear to be strong links between growing geographical inequality of innovation and prosperity, particularly within countries. This is particularly relevant in the context of declining overall research productivity, which could be driving growing geographical concentration. All in all, there is a rich agenda for continuing to investigate the relationship between the geography of innovation, economic development and income distribution.” [ABSTRACT FROM AUTHORS]

The role of technology and relatedness in regional  trademark activity

By: K. Drivas, Regional Studies, DOI: 10.1080/00343404.2020.1808883, 2020.

Abstract: “This paper provides insights into trademark activity at the regional level via two objectives. First, it examines the relationship between technological capabilities and new trademark applications. Second, it considers whether regions branch out to new trademark specializations that are related to their existing specializations. The paper employs European Union Intellectual Property Office’s (EUIPO) data to study 218 European NUTS-2 regions (16 countries) over the period 2000– 16. Results show that increased technological stock is associated with more trademark applications and that existing trademark relatedness induces new specializations. These findings contribute to a better understanding of trademark activity and policies related to regional diversification including Smart Specialisation.” [ABSTRACT FROM AUTHOR]

Circular  economy and eco-innovation in Italian industrial clusters. Best practices from  Prato textile cluster

By: F. Mazzoni, Insights into Regional Development, Vol. 2, Iss. 3, pp. 661-676, 2020.

Abstract: “The transition of Italian industrial clusters towards more circular and sustainable models of production could lead to substantial environmental, economic and societal benefits. The aim of this paper is to analyse which specific types of eco-innovations could lead to the implementation of circular economy in industrial clusters. The paper intends to do so not only performing a theoretical analysis but also exploring the case study of the Prato textile industrial cluster that, through the introduction of different circular and symbiotic measures has been able to significantly reduce its environmental impact and at the same time thrive and succeed.” [ABSTRACT FROM AUTHOR]

Inter- and intra-city networks: how networks are shaping China’s film  industry

By : H. Wen, Q. Zhang, S. Zhu, Y. Huang, Regional Studies, DOI: 10.1080/00343404.2020.1807492, 2020.

Abstract: “While existing studies have mapped out various networks with some visualization techniques, we move one step forward by examining if city/firm performance is dependent not only on intra-city networks, as proposed by the clustering literature, but also on inter-city networks, the core concept in the world city network literature. Our second contribution is to investigate the complementarity between inter- and intra-city networks, and how it could affect the performance of firms and cities. In doing so, we provide some preliminary evidence that studies on clustering and the world city network could benefit from having more dialogues with each other.” [ABSTRACT FROM AUTHORS]

The Role of Clusters in the Smart Specialisation  Process: The Case of Inovcluster in Portugal

By: T. Paiva, C. Domingues, L. Farinha, M. Ranga, Regional Helix Ecosystems and Sustainable Growth. Studies on Entrepreneurship, Springer, pp. 147-158, 2020.

Abstract: “Clusters are a key driver of the competitiveness and economic growth of a region, and they become even more important when the region has a smart specialisation strategy that involves clusters as dynamic innovation stakeholder. This chapter illustrates how Inovcluster, an agri-food cluster oriented on SMEs and microbusiness, operates within the Research and Innovation Strategies for Smart Specialisation (RIS3) of the centre region of Portugal, promoting regional business competitiveness. The chapter also examines the ways in which Inovcluster acts in order to effectively improve the market position and behaviour of its members.” [ABSTRACT FROM AUTHORS]

Overcoming geographical barriers to international  presence. The case of the emerging Romanian Tuscany wine cluster

By: M. Expósito-Langa, O. Bărbulescu, J.-V. Tomás-Miquel, European Planning Studies, DOI: 10.1080/09654313.2020.1817863, 2020.

Abstract: “This research contributes to the debate on the determining factors that support access to global value chains by companies belonging to emerging clusters in transition economies. The role of these economies is becoming increasingly relevant in a global world, where discovering new opportunities is focused on increasing market knowledge in order to offer the appropriate products. From a geographical approach, managing both the knowledge flows circulating within the cluster and those coming from external sources can have a positive effect on the companies’ international presence. To analyse these research questions, the wine industry cluster in the Muntenia-Oltenia region of Romania was studied. This wine-growing territory is also known as Romanian Tuscany due to its geographical location. In this area, the wineries have different characteristics depending whether or not they have international projection. The results suggest that local knowledge of the cluster, managed through the network of connections, is necessary for the international presence of the cluster. Moreover, there is a multiplier effect in those wineries where there is foreign ownership, due to their international entrepreneurial character. In summary, this paper contributes to a better understanding of how companies in an emerging cluster work in order to access global value chains.” [ABSTRACT FROM AUTHORS]