Michael Porter's Cluster Theory as a local and regional development tool – the rise and fall of cluster policy in the UK

There has been much written on industrial agglomeration, but it is Michael Porter’s cluster theory, above all others, which has come to dominate local and regional economic development policy. His work has been adopted by the OECD, EU, national and local governments the world over. He and his consultancy group have led reviews of national economic growth strategies in dozens of countries. This rise to prominence, however, is in the face of widespread critique from academics. Cluster theory’s theoretical foundations, its methodological approach and practical implementation have all been unpicked, leading some to label little more than a successful brand riding the wave of new regionalist fashions. Despite libraries of incredibly useful books and articles on clusters, there remains an absence of work which interrogates the translation of clusters into, and then through local and national policy. The aim of this article is to go some way to remedying the situation by examining the influence of Porter’s cluster theory charted through an examin- ation of UK regional development policy in the 1990s and 2000s. To help map the journey of clusters into and through UK economic development policy actor-network theory is adopted as an explanatory framework

Beyond the Knowledge-Based Theory of the Geographic Cluster

The knowledge-based theory of the geographic cluster represents a major attempt to re-conceptualize clusters, in essence arguing that the localization of firms in similar and related industries stimulates learning and innovation, giving a competitive advantage to clustered firms. This paper critically examines the knowledge-based theory the cluster, arguing that it has greatly overstated the advantages of co-location to firms and misidentified the mechanisms through which learning occurs in clusters. In particular, the theory is criticized on three points: the flexible, under-specified way that it defines its object of study; the focus on firms as an explanatory variable instead of more fundamental processes of resource accumulation; and the functionalist mode of theory that employs as an explanation. Ways to address of each of these issues are discussed. In a final section I suggest that the rather static notions of learning put forward in the knowledge-based theory of the cluster be replaced by a developmental theory of regional dynamics that focuses on both learning and structural transformation.geographic cluster, localization, relatedness, knowledge-based theory

Disentangling agglomeration and network externalities : a conceptual typology

Agglomeration and network externalities are fuzzy concepts. When different meanings are (un)intentionally juxtaposed in analyses of the agglomeration/network externalities-menagerie, researchers may reach inaccurate conclusions about how they interlock. Both externality types can be analytically combined, but only when one adopts a coherent approach to their conceptualization and operationalization, to which end we provide a combinatorial typology. We illustrate the typology by applying a state-of-the-art bipartite network projection detailing the presence of globalized producer services firms in cities in 2012. This leads to two one-mode graphs that can be validly interpreted as topological renderings of agglomeration and network externalities

Do creative industries cluster? Mapping Creative Local Production Systems in Italy

An important debate on the role of creativity and culture as factors of local economic development is distinctly emerging. Despite the emphasis put on the theoretical definition of these concepts, it is necessary to strengthen comparative research for the identification and analysis of the kind of creativity embedded in the territory as well as its determinants. Creative local production systems are identified in Italy and Spain departing from local labour markets as territorial units, and focusing on two different kinds of creative industries: traditional cultural industries (publishing, music, architecture and engineering, performing arts) and technology-related creative industries (R&D, ICT, advertising). The results suggest the existence of different patterns of concentration of creative industries in both countries and the concentration of creative industries in thecreative industries, creative local systems, agglomeration economies

Spaces of Innovation: learning, proximity and the ecological turn

Contrary to the fashionable “death of distance” thesis, the socio-spatial context for innovation remains as important as ever for firms, networks and the public institutions that tend to be neglected in orthodox narratives of learning. In this article we explore the changing socio-spatial dynamics of innovation through the medium of three arguments: (i) that the “learning region” debate was worth having because it triggered a fruitful dialogue between innovation theorists and economic geographers; (ii) that geographical proximity remains central to our understanding of learning and innovation and should not be reduced to, or conflated with, physical co-location; and (iii) that “the ecological turn” challenges conventional conceptions of learning, innovation and development, posing unsettling questions about the forces of path dependency, especially in less favoured regions.Learning, regions, innovation, proximities

Assessing overall network structure in regional innovation policies: a case study of cluster policy in the West Midlands in the UK

Revisiting the theoretical roots of the key concepts of “embeddedness” and “networks” that underpin many recent regional innovation polices, this paper strives to achieve a more systematic understanding of the overall network structure of geographic agglomerations, which helps to form a more convincing model of regional development based on learning. This also helps to establish an analytical framework with indicators to assess the overall network structure in regional innovation policies. Employing the framework, the examination of cluster policy in the West Midlands highlights its weakness in addressing the overall cluster network structure and the contingent factors influencing the structure. The analysis suggests that there may be similar weaknesses in other regional innovation policies and the theories underpinning them as they share a common weakness in addressing the structural characteristics of overall networks

The Space Between Us; Taking Stock, Looking Ahead

The attempt to theorise certain concepts like “the region†or "spatial development" should begin with the conceptualisation of the very basic element of them that is space. In the fields of contemporary economic geography and geographical economy there are two broad perspectives of “spaceâ€, which both have formed the basis of a long standing debate in multiple dimensions (eg. deduction- induction, quantitative- qualitative etc). The first perspective sees space as a container of action. Action is clearly demarcated from space, which has become “neutral†and no dynamic relation exists between them. Regions then can be compared and the measurable elements of action can be analysed and modelled through positivism. Scholars from the second perspective partially reject that way of thinking and tend to emphasise on the role of past and that of embeddedness of action in time-space. These see space as a medium for action. Every region (or locality) here is an existent alterity (historically produced) with its own politics, institutions and culture that cannot be compared with other regions in a positivistic sense, nor best practices can be easily transferred. What matters is the inter-relational action that produces space and at the same time it is influenced by space. Action and space form a duality in time. Instead of the statistical comparative methodology and modelling of the first perspective, what is of importance here, not only in terms of methodology but also in terms of policy making, is the deep relational experience of the researcher/ policy-maker with the space. The paper argues that what is needed is not a demarcation line between those two streams of literature but an interdisciplinary approach that gives an emphasis not on the sum of them but in the synthesis of logics and methodologies in an approach that promotes holisticity.

Regional Innovation Systems: Current Discourse and Challenges for Future Research

In recent years, the concept of Regional Innovation Systems has evolved into a widely used analytical framework generating the empirical foundation for innovation policy making. Yet, the approaches utilizing this framework remain ambiguous on such key issues as the territorial dimension of innovation, e.g., the region, and the apparently important role played by “institutions” or the institutional context in the emergence and sustenance of regional innovation systems. This paper reviews and summarizes the most important ideas and arguments of the recent theorizing on regional innovation systems to provide the basis for a critical examination of such issues as (1) definition confusion and empirical validation; (2) the territorial dimension of regional innovation systems; and (3) the role of institutions. Key-words: Regional innovation systems, institutions, regions, research, policy JEL CODES: O31, R58

Deriving Supply-side Variables to Extend Geodemographic Classification

The traditional proprietary geodemographic information systems that are on the market today use well-established methodologies. Demographic indicators are selected as a proxy for affluence and are then often linked to customer databases to derive a measure of the level of consumption expected from the different area typologies. However, these systems ignore fundamental relationships in the retail market by focusing upon demand characteristics in a ‘vacuum’ and ignore the supply side and consumer-supplier interaction. This paper argues that there may be considerable advantages to including supply-side indicators within geodemographic systems. Whilst the term ‘supply’ in this context might imply the number of consumer services already in an area, equally important for understanding demand are variables such as the supply of jobs and houses. We suggest that profiling an area in terms of its labour market characteristics gives a better insight into the income chain while the supply of houses could be argued to be a crucial factor in household formation that in turn will impact upon demographic structure. Using the regional example of Yorkshire and Humberside in northern England, we indicate how a suite of supply-side variables relating to the labour market can be assembled and used alongside a suite of demand variables to generate a new area classification. Spatial interaction models are calibrated to derive some of the variables that take into account zonal self-containment and catchment size