The Importance of Clusters for Sustainable Innovation Processes: The Context of Small and Medium Sized Regions

The purpose of the current paper is to provide a critical state-of-the-art review of current research on clusters and its correlation to innovation dynamics in small and medium-sized regions. In particular, we focus on the systematization of the main concepts and theoretical insights that are tributary to the cluster overview in terms of its relevance for the sustainability of the innovation processes, knowledge production and diffusion, which take place inside small and medium-sized regions. The present working paper takes into account the initial studies on English industrial districts (in the nineteenth century), passing through the Italian industrial districts (in the 70s and 80s of the twentieth century), until the modern theories of business clusters and innovation systems. These frameworks constitute the basis of an approach to endogenous development, which gives a central role to the interaction between economic actors, the society and the institutions and to the identification, mobilization and combination of potential resources within a particular geographical area.Cluster; Innovation; Endogenous development; Territory.

Clusters Models, Factors and Characteristics

The industrial cluster concept has become a subject of intense research studies and economic analysis starting with the study conducted by Michael E. Porter regarding the competitive advantage of nations. This concept is an economic phenomenon that is placed in a competitive context in which many businesses simultaneously compete and collaborate to gain different economic advantages. The economic advantages of successful real economic clusters has proves an important reason for the increased attention that this economic model has received from the scientific community and the governmental structures. Despite the advances in cluster research, its model remains a complex one and something that it‘s hard to reproduce in a real economic environment. The paper highlights typologies of clusters, models of determinant factors and its characteristics by doing a survey of the cluster literature. The research is conducted starting with the analysis of the cluster concept, based on different accepted descriptions. From this point there are summarized the main characteristics and are described models of cluster determinants. The objective of the paper is to highlight the importance and advantages of clusters but also the complexity of the cluster model mainly because of its complex determinant factors.Cluster, characteristic, model, regional development

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

Development of Small and Medium-Sized Regional Enterprises: Creation of Priority Areas (the Case of Sverdlovsk Region)

This article presents the results of the research which deals with the current level of development of small and medium enterprises (SMEs) in Sverdlovsk region. The study analyses the statistics of entrepreneurship development as well as Russian and international experience in this sphere. It also includes a sociological survey of entrepreneurs’ satisfaction with the business climate in the region. The research was aimed at elaborating guidelines for the long-term development of a regional entrepreneurship support system. This system seeks to facilitate the implementation of the ‘Strategy for the Development of Small and Medium Enterprises in Sverdlovsk Region before 2030’. As a result, an amalgam of strategic responses for the development of SMEs is presented. The completed response comprises measures intended to address the problems entrepreneurs face by developing SME support tools; to solve the endemic problems of the sector by improving the system of regional SME support; and to promote the realization of concrete priority areas for entrepreneurship development.The research work was carried out in collaboration with the Ural Federal University n.a. the First President of Russia B. N. Yeltsin and OOO “Analytical Centre Expert-Ural’” at the request of Sverdlovsk Regional Entrepreneurship Support Fund. The research was conducted in the period of September-November 2014. The state programme of Sverdlovsk region ‘Development of Industry and Science in Sverdlovsk Region Before 2020’ (approved by the Order of Sverdlovsk government of 24 October 2013 № 1293-ПП)

Development of Rural Manufacturing SME Clusters in a Developing Country: The Indonesian Case

Development of manufacturing small and medium enterprises (SMEs) is a key engine to promote development of rural economy in developing countries. A common industrial organization among manufacturing SMEs, especially in rural areas, in Indonesia as in many other developing countries is clustering, where firms producing similar products concentrate in a certain area. This has led the Indonesian government to adopt a clustering approach as an important element in its rural development strategy to promote the development of rural industry, which consists mainly of SMEs. The main aim of this study is to identify critical success factors of development of rural manufacturing SME clusters in Indonesia. From a number of cases, it reveals that direct government supports are not the main successful factor, or the role is minimal. Instead, the most critical ones are strong inter-firms linkages in clusters and external networks between the clusters and institutions outside the clusters, especially large enterprises (LEs), through subcontracting and traders/trading companies in urban areas. Through such external linkages, firms in clusters secure their access to a wider market.SME, SME Cluster, rural economy, soccess factors, Tegal metalworking industry, Indonesia, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development,

Getting Into Networks and Clusters: Evidence on the GNSS composite knowledge process in (and from) Midi-Pyrénées

This paper aims to contribute to the empirical identification of clusters by proposing methodological issues based on network analysis. We start with the detection of a composite knowledge process rather than a territorial one stricto sensu. Such a consideration allows us to avoid the overestimation of the role played by geographical proximity between agents, and grasp its ambivalence in knowledge relations. Networks and clusters correspond to the complex aggregation process of bi or n-lateral relations in which agents can play heterogeneous structural roles. Their empirical reconstitution requires thus to gather located relational data, whereas their structural properties analysis requires to compute a set of indexes developed in the field of the social network analysis. Our theoretical considerations are tested in the technological field of GNSS (Global Satellite Navigation Systems). We propose a sample of knowledge relations based on collaborative R&D projects and discuss how this sample is shaped and why we can assume its representativeness. The network we obtain allows us to show how the composite knowledge process gives rise to a structure with a peculiar combination of local and distant relations. Descriptive statistics and structural properties show the influence or the centrality of certain agents in the aggregate structure, and permit to discuss the complementarities between their heterogeneous knowledge profiles. Quantitative results are completed and confirmed by an interpretative discussion based on a run of semi-structured interviews. Concluding remarks provide theoretical feedbacks.Knowledge, Networks, Economic Geography, Cluster, GNSS

Clusters as a vehicle for industrial development in the Eastern Cape

This study examines the cluster approach as a means for promoting industrial development in the Eastern Cape Province, Republic of South Africa. The Province is unevenly developed, with pockets that are well-integrated into the national and global economies, but with some areas being severely underdeveloped. However, the Province retains a high potential for industrial revitalisation and expansion. The option of applying the cluster approach, most closely associated with Michael Porter’s work, The Comparative Advantage of Nations, to unlock this potential is examined, with a particular focus on the factors affecting the efficiency of the cluster as a vehicle for promoting industrialisation. Existing works on success factors for clusters and comparative case studies are examined, while responses from a survey among provincial stakeholders on the adaptation of the cluster concept to the circumstances of the province are analysed. The study finds that the management of a cluster is critical to its success or demise. Further to this, the key role that exists for industry is in building inter-firm co-operation, improving government and business cooperation, skills development of local labour pools and facilitating interactions between buyers and sellers. While Government Policy is not always necessary for establishment of clusters, in the specific circumstances of the Eastern Cape, it is desirable due to underdevelopment in most regions. The case for introduction of a cluster policy is supported by global experiences with clusters. A cluster approach for promotion of industrialisation is therefore recommended for the Province, with steps that may be taken towards the formation of clusters suggested

From Concept to Policy: Building Regional Innovation Systems in Follower Regions

In the spirit of “The Lisbon strategy”, public policies are redirecting support from investment-driven policies to knowledge building as the main driver for competitiveness and innovation. This re-orientation poses different challenges to regions and RIS concept may be the central element, simultaneously goal and toolbox, for devising innovation promotion policies. The RIS framework stresses the need to combine a systemic and inclusive view of innovation along with territorially embedded specificities. In this paper we explore how to operationalize the concept of RIS in terms of innovation policy, arguing against a “one size fits all” approach. Concentrating our analysis on follower regions, we bridge the concept of RIS with the structural deficiencies and challenges posing to this kind of regions, for which innovation policy should seek an adequate combination between science push and demand pull perspectives. We also address the importance of taking advantage of the catching-up status, building upon R&D cost-advantages and clustering around external initiatives as well as the correction of important constraints to the construction of a RIS.Innovation, Regional Innovation Systems, Innovation Policy, Follower Regions