Industrial clusters, firm location and productivity – Some empirical evidence for Danish firms

According to the economic literature, industrial clusters are groups of firms on the same location composing a production system with spillovers that can be vertical and/or horizontal. This paper focuses on horizontal clusters by exploring the spatial distribution of industrial clusters in Denmark. The key issue in the theoretical part of the paper is whether firms located in industrial clusters are more productive than their counterparts located separately outside industrial agglomerations. Firms located in clusters are potentially more productive than other firms because of the agglomeration advantages of e.g. networks, knowledge spillovers, human capital mobility etc. In the empirical part of the paper, industrial clusters are identified using municipalities as the spatial dimension. In the first part of the analysis, clusters are identified at the NACE-2 digit industrial level. Next, using firm-level data for the 1990s the relative ‘cluster-firm’ productivity is estimated. The study finds evidence of a significantly higher productivity in clusters. However, the magnitude of the cluster advantages varies a lot across industries and is highest in textile.Industrial clusters; productivity

Industrial clusters and economic performance in Brazil

Industrial clusters, which are commonly targeted to receive financial support allocated to locally based development projects, are seen as an effective industrial policy tool for improving productivity and generating employment. Nevertheless, identifying clusters and assessing their economic performance is a challenge for policymakers. This paper aims to address this challenge by identifying the location of clusters based on neighbor relationships and specialization in Brazil and providing some insights on their effects on employment generation. The paper uses both Location Quotient and Local Indicator of Spatial Association to identify potential clusters in 27 industrial sectors in 5564 Brazilian municipalities. In addition, it uses annual municipal panel data for 2006-2009 to assess whether the presence of potential clusters is correlated with employment generation. The results show that clusters located in municipalities whose neighbors have similar industrial structures perform better than those that present industry specialization only

The Identification of Industrial Clusters – Methodical Aspects in a Multidimensional Framework for Cluster Identification

We use a combination of measures of spatial concentration, qualitative input-output analysis and innovation interaction matrices to identify the horizontal and vertical dimension of industrial clusters in Saxony in 2005. We describe the spatial allocation of the industrial clusters and show possibilities of vertical interaction of clusters based on intermediate goods flows. With the help of region and sector-specific knowledge interaction matrices we are able to show that a sole focus on intermediate goods flows limits the identification of innovative actors in industrial clusters, as knowledge flows and intermediate goods flows do not show any major overlaps.industrial clusters, qualitative input-output-analysis, innovation interaction matrix

Studies of Clusters as a Basis for Industrial and Technology Policy in the Danish Economy

The main focus of the paper is on the recent development of clusters defined as “resource areas”. The concept has been a cornerstone in the technology and industrial policies laid out from the Danish Ministry of Business and Industry, since 1993. Earlier studies (industrial complexes) identified clusters using transactions, often in an input-output framework, while the present clusters are to a larger degree based upon a demand perspective. The paper firstly describes and assess the earlier industrial complex studies, and other related case studies of clusters of particular positions of strength in the Danish economy. The industrial complexes and micro-founded studies of Danish clusters, have all been either a direct input, or a reference point when developing the resource areas. However, the most direct influence have been the Danish Porter studies. Denmark participated as one of ten countries in M. E. Porter’s analysis of clusters of competitive advantages. Accordingly, the Danish Porter studies are summarised. In continuation hereof, the development of the methodology applied for developing the resource areas, is discussed in a historical perspective. Furthermore, different techniques for identifying industrial clusters are considered, including input-output approaches. Finally, the paper warns that theoretically based studies and practical policy actions do not always combine easily. Striking a balance between allowing for pragmatic policy making (with more than a single aim) on the one side, while not losing the theoretical foundation on the other, is an important task.Cluster based policies; industrial complexes; resource areas, innovative clusters

Mapping Local and Regional Potentials for Inter-sectoral Technology Flows in Industrial Clusters – Empirical Results for Germany

The paper explores the potential for inter-sectoral technology flows in industrial clusters in Germany. With the help of a product-embodied R&D flow matrix, calculated using data on input–output tables and sectoral R&D employment, we construct industrial cluster based networks of technology provider and user relationships and examine the regional embeddedness of different sectors in the technological diffusion network of industrial clusters. As a result, the paper shows that simple graphical representations of relevant product-embodied R&D flows illustrate substantial differences in potentials for technological relations within industrial clusters.

IT Clusters as a Special Type of Industrial Clusters

Economic and industrial clusters have become in the last years the object of a new economic theory that has proved important for regional and even national (Porter, 1990) development. The papers objective is to emphasize the particularities of IT clusters, especially their characteristics that are derived from the special features of this type of technological clusters. IT clusters represent an important type of technology clusters and at global view they represent most successful and efficient examples of clusters. The paper describes the characteristics that are behind the creation, the continuous development and the success of the IT cluster and aims to emphasize those particular features which define an IT cluster and separate it from another type of industrial cluster. In order to emphasize the importance factors, there are described different types of IT clusters.Quality, Cluster, Characteristic, IT

Agent-Based Models of Industrial Clusters and Districts

Agent-based models, an instance of the wider class of connectionist models, allow bottom-up simulations of organizations constituted byu a large number of interacting parts. Thus, geogrfaphical clusters of competing or collaborating firms constitute an obvious field of application. This contribution explains what agent-based models are, reviews applications in the field of industrial clusters and focuses on a simulator of infra- and inter-firm communications.Agent-based models, industrial clusters, industrial districts

Internalistation, Industrial Policy and Clusters

This paper analyses industrial policy in a high wage open economy hosting an agglomeration consisting of vertically linked upstream and downstream firms. Optimal policy towards upstream and downstream industries differ radically in this setting. However the restriction that the agglomeration should be sustained may restrict the otherwise welfare maximising policy.agglomeration; clusters; taxes

Industrial Agglomeration, Production Networks and FDI Promotion The Case Study of China

Chinas Industrial clustering is a distinguished economic phenomenon over the last 20 years. It began to enter into its fast track in the mid-1990s and developed rapidly in recent years. Both market-driven force and government-driven force contribute to Chinese industrial clusters. The opening and stable macroeconomic policies create a favorable climate for the industrial clustering. Local government has made its contribution to construction on both hardware and software environments for industrial clusters. The major contribution of FDI to the local industrial clustering lies in helping integrating Chinese domestic industries into international division of labor and at the same time forging a relatively integrated production chain for Chinese domestic industries. At present, China has stepped into the new phase of industrial clusters upgrading. Chinese government is gradually improving the local software infrastructure for industry clustering.Industrial Agglomeration, China, Production Networks, FDI, foreign direct investment