Knowledge Flows through Informal Contacts in Industrial Clusters Myths or Realities?

The role of informal networks in the development of regional clusters has received a lot of attention in the literature recently. Informal contact between employees in different firms is argued to be one of the main carriers of knowledge between firms in a cluster. This paper empirically examines the role of informal contacts in a specific cluster. In a recent questionnaire, we ask a sample of engineers in a regional cluster of wireless communication firms in Northern Denmark, a series of questions on informal networks. We analyze whether the engineers actually acquire valuable knowledge through these networks. We find that the engineers do share even valuable knowledge with informal contacts. This shows that informal contacts are important channels of knowledge diffusion.Informal contacts, regional clusters, communication technology

Technoligical Life Cycles Regional Clusters Facing Disruption

The phenomenon of technological life cycles is argued to be of great importance in the development of regional clusters. New 'disruptive' technologies may initiate the emergence of new regional industrial clusters and/or create new opportunities for further development of existing ones. However, they may also result in stagnation and decline of the latter. The term disruptive refers to such significant changes in the basic technologies that may change the industrial landscape, even in the shorter run. The paper examines the key features of a regional cluster, where the economic development patterns are quite closely related to the emergence of new key technologies.Technological life cycles, regional clusters, communication technology

Entrepreneurial Founder Effects in the Growth of Regional Clusters How Early Success is a Key Determinant

How can the growth of regional clusters be explained? This paper studies in great detail the growth of the wireless communication cluster in Northern Denmark. Unlike the dominant theories, we argue that initial success of the first firms are the main driving force behind the generation of new firms that eventually lead to the formation of clusters. The success of the first firms tends to generate spin-offs, which become successful themselves due to the background of the founders.Agglomeration, Clusters, Spin-offs, Knowledge Diffusion

Entry by Spinoff in a High-tech Cluster

Recently empirical studies have focused on how capabilities of new entering firms are important for the evolution of industries over time. The performance of new entrants appears to be significantly influenced by their pre-entry background. The general impression of the literature is that firms founded by former employees of successful incumbents have shown larger propensities to survive than other categories of new entrants. In the present paper, we use this approach to study the emergence and growth over the past three decades of a wireless telecommunications cluster around Aalborg in North Jutland, Denmark (NorCOM). The aim is to analyse the dominating forces behind the growth of NorCOM using detailed information about the founding events and organizational background of the individual entrants in the cluster. We show that the technological successes of firms in the region have powered a spinoff process, which can account for the majority of the growth in number of firms and employment in the cluster.Clusters, Spinoffs, Evolution of Industries, Entrepreneurs