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.

Developing Methods to  Assess and Monitor Cluster Structures: The Case of Digital Clusters

By: T. Kudryavtseva, N. Kulagina, A. Lysenko, MA. Berawi, A. Skhvediani. International Journal of Technology, Vol. 11, Iss. 4, 2020.

Abstract: “The purpose of this work is to develop a methodology to assess and monitor cluster structures. The authors' proposed method assesses the level of cluster structure development by considering cluster transformation analysis in the information and communication sectors of the regional economy, prerequisites for cluster formation, and the current level of digital cluster development in the region. To evaluate the prerequisites of digital economy cluster formation, an integral indicator is calculated and a multi-parameter approach is used to evaluate cluster effectiveness. The integral indicator includes 17 values calculated using the scorecard evaluation method. To make conclusions about the stages of IT cluster development, the authors provide the scale used to interpret integral indicator values. This scale classifies cluster development using four levels: beginner, elementary, intermediate, and advanced. A comparative analysis of IT cluster development in the Kaluga and Bryansk regions of the Russia reveals that IT clusters in Kaluga are at an advanced level of development due to its highly developed infrastructure and workflow organization, while IT clusters in Bryansk are at the beginner stage. This shows that Kaluga has a more effective industrial policy for clusters. The proposed methodology allows researchers to compare clusters from different regions and monitor their development.” [ABSTRACT FROM AUTHORS]

Indicators of  Regional Innovation Clusters’ Effectiveness in the Higher Education System

By: I. Lysenko, S. Stepenko, H. Dyvnych. Education sciences, November 2020.

Abstract: “Under globalization conditions, the main priority of the state education policy in many countries of the world is to ensure higher education quality. This is possible through close and efficient cooperation between the state, higher education institutions, future specialists, employers and innovative structures (clusters). This study focuses on the development of indicators that can comprehensively assess the effectiveness of regional innovation clusters in the higher education system. The main attention is given to the analysis of innovations, business, education development and competitiveness, as indicators of the effectiveness of regional innovation clusters in the higher education system. The following methods have been used within the research: content analysis, statistical, correlation and regression analysis, econometric modeling and the graphical method. As a result of the research, indicators of the effectiveness of regional innovation clusters have been identified and the impact of these indicators on the higher education system has been evaluated. The authors have shown that there is a close relationship between the level of development of regional innovation clusters, indicators of business and innovations development, and the level of competitiveness. The direct impact of those on the higher education system has been established and confirmed by the provided calculations.” [ABSTRACT FROM AUTHORS]

How does knowledge flow in industrial  clusters? The comparison between both naturally and intentionally formed  industrial clusters in China

By: C.-H. Ai, H.-C. Wu, T-H. Huang, R. Wang. Asian Journal of Technology Innovation, November 2020.

Abstract: “This study uses a survey research method. Data were collected from 178 companies in Shenzhen Hi-Tech Industrial Park, which was considered to be an intentionally formed industrial cluster. A total of 286 questionnaires were collected from Huaqiangbei Commercial Zone, which was considered to be a naturally formed industrial cluster in China. This study applies structural equation modelling with the analysis of moment structure to test the hypotheses. The findings of this study show that there is different development between intentionally and naturally formed industrial clusters. In the intentionally formed industrial cluster, the results display that global connections positively influence formal cooperation, which in turn, positively results in explorative and exploitative innovation. In this model, local connections positively influence formal cooperation, which in turn, positively leads to explorative and exploitative innovations. In contrast, in the naturally formed industrial cluster, the result shows that global connections positively influence both formal and informal cooperation, which in turn, positively result in explorative and exploitative innovations. In the model, local connections positively influence informal cooperation, which in turn, positively leads to explorative and exploitative innovations.” [ABSTRACT FROM AUTHORS]

Two logics of regionalism: the development of  a regional imaginary in the Toronto – Waterloo Innovation Corridor

By: D. Wachsmuth, P. Kilfoil. Regional Studies, November 2020.

Abstract: “Why and how do regional politics develop outside the context of a coherent regional economy? Alongside the familiar logic of city-regional growth coalitions, we introduce a less familiar logic of regional imaginaries actively constructing strategies in novel scalar configurations. We explore this second logic of regionalism in the case of the Toronto–Waterloo ‘Innovation Corridor’. We highlight three important forces: the productive ambiguity of the region as a spatial and strategic concept; the centrality of regionalism entrepreneurs in constructing a political agenda; and the importance of extrospective policy- making for establishing a rationale for collaboration.” [ABSTRACT FROM AUTHORS]

Does light touch cluster  policy work? Evaluating the tech city programme

By: M. Nathan. Research Policy, https://doi.org/10.1016/j.respol.2020.104138, 2020.

Abstract: “Cluster policies are popular with policymakers, but we know surprisingly little about their effectiveness. This paper evaluates the causal impact of a flagship UK technology cluster programme that uses ‘light touch’, market- orientated interventions. I build a simple framework and identify effects using synthetic controls plus placebo tests to handle programme endogeneity concerns. I implement this design on rich workplace-level microdata from the Business Structure Database, alongside a range of other administrative sources. I explore mechanisms through further tests for timing, cross-space variation, scaling and churn. The policy grew and densified the cluster, but has much weaker, partial effects on tech firm performance. I also find most policy ‘effects’ began before rollout, raising questions about the programme’s added value. More careful policy design could make future interventions more effective.” [ABSTRACT FROM AUTHOR]

Transnational economic clusters: The case of  the Iberian Peninsula

By: V. D. Martinho, M. D. Sanchez-Carreira, P. R. Mourao. Regional Science Policy and Practice, DOI: 10.1111/rsp3.12346, 2020.

Abstract: “Spain and Portugal are two neighbouring countries, sharing regions with specific socio-economic challenges. These challenges arise now as promising sources of regional co-operation, namely in supporting the design of more tailored regional policies. In this context, the main aim of this paper is to discuss how neighbouring spaces within the Iberian Peninsula can be identified as sources for positive economic effects on the surrounding area. For this purpose, we will use Eurostat regional data, taking advantage of spatial autocorrelation analysis. Based on the developments related to Verdoorn's law, we explored the spatial approach for studying the latent correlations between the Iberian regions, in terms of local production. The results show that there are several Iberian contexts of economic success that can be considered as benchmarks for other regions. We also posit that policies' frameworks between neighbouring regions should be enhanced. These findings are relevant outputs to be considered by public institutions in the design of regional policies that promote more regional co-operation and support spreading effects from poles of development to neighbouring regions (reduction asymmetries).” [ABSTRACT FROM AUTHORS]

Systemic  intermediaries and the transition toward forest-based bioeconomy in the North

By: A. Klitkou, S. Jolly, N. Suvinen. Review of Evolutionary Political Economy, November 2020.

Abstract: “The activities of cluster initiatives operating as systemic intermediaries and supporting networking activities have been discussed in prior studies. We integrate insights from the cluster theory and the literature on sustainability transitions to study the activities of clusters acting as systemic intermediaries in the different phases of the development of a forest-based bioeconomy, namely (1) predevelopment and exploration; (2) takeoff; (3) acceleration and (4) stabilisation. We study three regional cluster initiatives in three different Nordic regions: forest bioeconomy, Central Finland, Finland; Paper Province, Värmland, Sweden, and Arena Skog, Trøndelag, Norway. The paper highlights that the crises in the forest- based industries in Värmland and Trøndelag were the starting point for forest- based cluster development in these regions, while in Central Finland the development was a part of the general economic restructuring of the Finnish economy during the first phase. In the fourth phase, the discontinuity of developed collaboration structures created opportunities for project-oriented collaboration in the case of Central Finland while in the Värmland and the Trøndelag case, the cluster initiatives have broadened the focus of the cluster but also continued the core activities.” [ABSTRACT FROM AUTHORS]

Physical distance vs.  clustering as influences on contracting complexity for biopharmaceutical  alliances

By: J. Kim, S. Globerman. Industry and Innovation, Vol. 27, Iss. 8, November 2020.

Abstract: “We examine whether the presence of alliance firms in the same regional cluster or in close physical proximity influences contracting behaviour of biopharmaceutical companies by enhancing coordination and mitigating the need for control. The literature addressing geographical proximity and alliance contracting fails to make a clear distinction between physical co-location and co-location within a cluster, although the two attributes are conceptually distinct. We find that geographic proximity is not related to contracting behaviour. The impact of co-location within a cluster is more nuanced. Specifically, we find that co-location in the San Francisco Bay Area cluster is associated with less complex contracting; however, co- location in other biotechnology clusters does not seem to be related to contracting behaviour. We believe that the informal business environment characterising the Bay Area cluster, as well as unique roles played by venture capital and law firms located in the Bay Area account for the distinct result.” [ABSTRACT FROM AUTHORS]

Industrial Clusters,  Networks and Resilience to The Covid-19 Shock in China

By: R. Dai, D. Mookherjee, Y. Quan, X. Zhang. NBER, DOI 10.3386/w28000, 2020.

Abstract: “We examine how exposure of Chinese firms to the Covid-19 shock varied with a cluster index (measuring spatial agglomeration of firms in related industries) at the county level. Two data sources are used: entry flows of newly registered firms in the entire country, and an entrepreneur survey regarding operation of existing firms. Both show greater resilience in counties with a higher cluster index, after controlling for industry dummies and local infection rates, besides county and time dummies in the entry data. Reliance of clusters on informal entrepreneur hometown networks and closer proximity to suppliers and customers help explain these findings.” [ABSTRACT FROM AUTHORS]