The role of MNEs in the genesis and growth of a resilient entrepreneurial ecosystem

This article reports on a longitudinal process study of the critical role of anchor MNEs in the metamorphosis of a high-tech industrial cluster into a local entrepreneurial ecosystem. It draws on entrepreneurial ecosystem and international business literatures to frame the study of the genesis and evolutionary processes of an entrepreneurial ecosystem that emerged from two MNE subsidiaries, both of which had evolved into advanced R&D centres of excellence around a technology specialism. It shows how multiple new venture spinouts by former MNE employees introduced technological heterogeneity that catalysed into a resilient entrepreneurial ecosystem. The theoretical and policy implications that can be drawn from this case study emphasize the existence of both technology specialism and heterogeneity for resilience in an entrepreneurial ecosystem, and that reaching such a position is evolutionary in nature.Science Foundation Irelan

A Balancing Act: Managing the global-local dimensions of industrial clusters through the mechanism of 'lead' organisations

The purpose of this paper is to investigate 'leading' organisations in a region to understand how the balance between the global and local dimensions can be managed by clusters. Two cases of industrial clusters are employed to examine how certain organisations can occupy a 'lead' position and how - if at all - such organisations generate an agglomerative effect in a cluster, given that firms engage in extra-local inter-organisational linkages in order to remain competitive. The study shows that when large firms enact a leading role by influencing the technology trajectory of the region and stimulating the local dynamic they can generate agglomerative effects thereby enhancing the relevance and sustainability of clusters. Most significantly, it shows how leading organisations act as an important facilitator in connecting the global and local dimensions of clusters even in the absence of extensive formal local linkages. While the study substantiates previous research on the significance of temporary and organised forms of proximity it also shows the value of permanent geographical proximity, thereby contesting recent research that downplays the relevance of the clustering institution (e.g. Wickham and Vecchi 2008, Lorentzen 2007).peer-reviewe

Inward foreign investment and the clustering process: the case of the medical technology sector in Ireland

This paper investigates how, if at all, inward foreign investment can instigate a clustering process when such investment is initially attracted to a region as a result of targeted public policy rather than the existence of local sectoral capabilities. The case of the medical technology cluster in Galway on the west coast of Ireland is used to examine if FDI (foreign direct investment) can create a clustering effect in FDI-generated agglomerations. The study incorporates the collection of quantitative data from a postal questionnaire survey of the cluster member firms and qualitative data from semi-structured interviews with a sample of both indigenous and foreign-owned firms in the cluster. The empirical evidence shows that the presence of large foreign-owned MNCs (multinational corporations) results in local knowledge transfers and regional reputation effects, which together give rise to a clustering process. The research contests the view that there are generally limited local spillovers in FDI-generated clusters (De Propris and Driffield 2006) and contrary to other perspectives (Phelps 2008), it shows that external economies can be captured locally from FDI in such clusters.peer-reviewe

Local Clusters and Global Entrepreneurship: The significance of spatial and relational propinquity in new firm formation

This paper explores the significance of local proximity for new firm formation in particular industries. Within the literature, entrepreneurs are viewed as critical to industrial cluster formation and development in regions, while at the same time clusters are assumed to foster entrepreneurship by providing established linkages and access to knowledge flows. Entrepreneurship is therefore modelled as an inherently local process within industrial clusters. However, given that firms, particularly in high-tech sectors, are often globally oriented the significance of local proximity both geographically and relationally is ambiguous. Therefore, the research questions addressed in this paper are; How "local" is new firm formation in an industrial cluster in terms of the networks created to establish and develop a globally-oriented firm and the influence of the cluster in the formation of such a firm? And how significant, if it all, is being located in a cluster for a globally-oriented firm? To answer these questions, globally-oriented firms within the medical technology cluster in Galway were analysed. Data was gathered from twelve interviews with entrepreneurs in the cluster. Analysis of this data shows that even though these firms are established to serve an international market from the outset, the entrepreneurs use the local cluster and local networks to facilitate them in accessing international networks. Locating in the cluster is found to be significant for the entrepreneurs in three main ways: access to a specialised labour pool, a quality of life factor that makes it easier to attract and retain labour and the international reputation of Galway as a medical device hub that facilitates entrepreneurs in establishing global networks. Moreover, local networks in the form of mentorship between serial and more inexperienced entrepreneurs were found to be particularly important for building the credibility of such start-up firms and their international connections

Inward foreign investment and the clustering process: the case of the medical technology sector in Ireland

This paper investigates how, if at all, inward foreign investment can instigate a clustering process when such investment is initially attracted to a region as a result of targeted public policy rather than the existence of local sectoral capabilities. The case of the medical technology cluster in Galway on the west coast of Ireland is used to examine if FDI (foreign direct investment) can create a clustering effect in FDI-generated agglomerations. The study incorporates the collection of quantitative data from a postal questionnaire survey of the cluster member firms and qualitative data from semi-structured interviews with a sample of both indigenous and foreign-owned firms in the cluster. The empirical evidence shows that the presence of large foreign-owned MNCs (multinational corporations) results in local knowledge transfers and regional reputation effects, which together give rise to a clustering process. The research contests the view that there are generally limited local spillovers in FDI-generated clusters (De Propris and Driffield 2006) and contrary to other perspectives (Phelps 2008), it shows that external economies can be captured locally from FDI in such clusters

A Balancing Act: Managing the global-local dimensions of industrial clusters through the mechanism of \u27lead\u27 organisations

The purpose of this paper is to investigate \u27leading\u27 organisations in a region to understand how the balance between the global and local dimensions can be managed by clusters. Two cases of industrial clusters are employed to examine how certain organisations can occupy a \u27lead\u27 position and how - if at all - such organisations generate an agglomerative effect in a cluster, given that firms engage in extra-local inter-organisational linkages in order to remain competitive. The study shows that when large firms enact a leading role by influencing the technology trajectory of the region and stimulating the local dynamic they can generate agglomerative effects thereby enhancing the relevance and sustainability of clusters. Most significantly, it shows how leading organisations act as an important facilitator in connecting the global and local dimensions of clusters even in the absence of extensive formal local linkages. While the study substantiates previous research on the significance of temporary and organised forms of proximity it also shows the value of permanent geographical proximity, thereby contesting recent research that downplays the relevance of the clustering institution (e.g. Wickham and Vecchi 2008, Lorentzen 2007)