Entrepreneurship, knowledge and the regional dimension: Where do we stand on theory and empirical evidence? Roundtable at the DIME-LIEE/NTUA 2006 Conference.

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Chapter 10: Location effects, economic geography and regional policy
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Entrepreneurship, knowledge and the regional dimension: Where do we stand on theory and empirical evidence? Roundtable at the DIME-LIEE/NTUA 2006 Conference in Athens “Entrepreneurship, Knowledge, Learning and the Evolution of Industrial/Territorial Clusters and Regions” Bent Dalum DRUID-IKE Group and CTIF/SEIT Department of Business Studies Aalborg University

2 (1) ‘Cleaning’ of concepts In my view it would be a major step forward, if somebody could initiate a standardization process concerning the concept of clusters. Confusion is more or less universal. Dahmén’s concept of development blocks somehow well defined. Perroux’s filière somehow well defined. Marshall’s industrial districts well defined.

3 Porter’s cluster definition “Clusters are geographic concentrations of interconnected companies, specialised suppliers, service providers, firms in related industries, and associated organisations (such as universities, standard agencies, trade associations) in a particular field linked by commonalities and complementarities. There is competition as well as cooperation.” In principle OK, but too elastic.

4 Cluster definition – Giuliani and Marshall Cluster: “…a geographical agglomeration of firms operating in the same industry” (Guiliani, RP 2005, p. 272). Industrial district …a concentration of “large numbers of small businesses of a similar kind in the same locality” (Marshall, 1920).

5 Martin and Sunley’s critique (2003) of Porter’s cluster definition “First, a concept so elastic as the cluster can not provide a universal and deterministic model on how agglomeration is related to regional and local economic growth” (p. 28). “Second,….just because there is an association between some high-growth industries and various forms of geographical concentration does not mean that this concentration is the main cause of their economic growth or relative success” (p. 29).

6 Feldman and Martin (RP, 2005): ”Constructing jurisdictional advantage” Regional agglomeration – cluster – jurisdiction. Cluster: ”…spatially defined epistemic communities of common interest” (p. 1237). Jurisdiction focused at the ’city-region’, ”…because the literature on clustering and agglomeration increasingly points to the importance of small and compact geographic units” (p. 1239).

7 (2) The role of policy in cluster formation Feldman and Martin (RP, 2005): Two outer poles Agressive central planning Straight-forward laissez faire

8 Feldman and Martin (RP, 2005): The role of policies in cluster formation ”Previous work on clusters has emphasized the ramdom nature of geographical location” (p. 1247). Krugman (1991) in more general; Klepper on e.g. Detroit. ”In contrast we argue that clusters may be constructed, but not in the way that policy typically proceeds by targeting an industry that is poised to take off in another location. Instead we argue that policy may be fruitfully employed by building upon unique place-specific assets” (p. 1247).