Abstract
Policies to support clusters of firms and other territorially-rooted agents are as popular today as they have ever been. While contemporary cluster policy most commonly adopts a microeconomic perspective to support business competitiveness, cluster policy practice remains strongly influenced also by the social foundations that can be found in the industrial district concept. This paper critically analyses contemporary cluster policy by incorporating an institutional perspective that seeks to enable greater understanding of the relevance of local community, systems of values, and informal institutions for cluster policy practices. Supported by a brief analysis of the diversity of cluster policies that are found in seven European regions, the paper makes a first step in highlighting the potential space for cluster policies to work more explicitly on the social embeddedness of clusters in their territories. This agenda requires more research, which could build on Giacomo Becattini’s key ideas in responding to the increasing sensitivity of both academics and policy makers to the intractability of the economic and social aspects of territorial development processes.
Similar content being viewed by others
Notes
Clusters and industrial districts share some essential characteristics (Porter and Ketels 2009) and they do so alongside a range of other concepts that have emerged in other parts of the academic literature. For example Scott (1998) highlighted the rise of industrial spaces, while others have talked about local production systems (Crouch et al. 2001), local high-tech milieus (Keeble and Wilkinson 2002), local and regional innovation systems (Asheim and Gertler 2006; Cooke 2001; Cooke and Morgan 1998), or learning regions (Asheim 1996; Asheim and Clark 2001; Morgan 1997). A number of works have tried to systemise these related concepts, e.g. Rosenfeld (2005) or Delgado et al. (2016).
For example Brenner and Schlump (2011) see the cluster support areas in (a) education, (b) public research, (c) R&D support, (d) innovation culture, (e) start-ups support, (f) network organisation and cooperation, and (g) infrastructure and local conditions, and Maskell and Kebir (2005) argue that different types of policy support will be more or less appropriate at different stages of the cluster life-cycle.
The purpose of NIE is on both (1) to explain the determinants of institutions and their evolution in time, and (2) to evaluate their impact on economic performance efficiency (Kherallah and Kirsten 2001).
Territorial strategies or programmes that address a broad spectrum of areas, e.g. from industry, via innovation to education.
References
Asheim, B. (1996). Industrial districts as 'learning regions': a condition for prosperity. European Planning Studies, 4, 379–400.
Asheim, B., & Clark, E. (2001). Creativity and cost in urban and regional development in the ‘New Economy’. European Planning Studies, 9(7), 805–811.
Asheim, B., & Gertler, M. S. (2006). The geography of innovation: regional innovation systems. The Oxford Handbook of Innovation. http://oxfordindex.oup.com/view/10.1093/oxfordhb/9780199286805.003.0011. Accessed 27 June 2017.
Becattini, G. (1990). The Marshallian industrial district as a socio-economic notion. In F. Pyke, G. Becattini, & W. Sengenberger (Eds.), Industrial Districts and Inter-Firm Co-Operation in Italy (pp. 37–51). Geneva: International Institute for Labour Studies.
Becattini, G. (2002). From Marshall’s to the Italian ‘Industrial Districts’. A brief critical reconstruction. In Fortis M. & Curzio A. Q. (Eds.) Complexity and Industrial Clusters. Contributions to Economics. Heidelberg: Physica-Verlag HD.
Bellandi, M. (1997). Localised productive knowledge and industrial districts as learning regions. In 37th European Congress (August).
Borrás, S. (2008). Cluster Policies in Europe: Firms, Institutions and Governance. Cheltenham: Edward Elgar.
Brenner, T., & Schlump, C. (2011). Policy measures and their effects in the different phases of the cluster life cycle. Regional Studies, 45(10), 1363–1386.
Brusco, S. (1982). The Emilian model: productive decentralisation and social integration. Cambridge Journal of Economics, 6(2), 167–184. http://cje.oxfordjournals.org/content/6/2/167.full.pdf+html. Accessed 27 June 2017.
Coase, R. H. (1937). The nature of the firm. Economica, 4(16), 386–405. http://onlinelibrary.wiley.com/doi/10.1111/j.1468-0335.1937.tb00002.x/full. Accessed 27 June 2017.
Cooke, P. (2001). Regional Innovation Systems, Clusters, and the Knowledge Economy. Industrial and Corporate Change, 10(4), 945–974. https://academic.oup.com/icc/article-abstract/10/4/945/706922/Regional-Innovation-Systems-Clusters-and-the?rss=1&ssource=mfc. Accessed 27 June 2017.
Cooke, P., & Morgan, K. (1998). The Associational Economy. Firms, Regions, and Innovation. Oxford: Oxford University Press. https://global.oup.com/academic/product/the-associational-economy-9780198290186?cc=es&lang=en&. Accessed 27 June 2017.
Crouch, C., Galés, P. L., Trigilia, C., & Voelzkow, H. (2001). Local Production Systems in Europe: Rise or Demise? Oxford: Oxford University Press. https://global.oup.com/academic/product/local-production-systems-in-europe-rise-or-demise-9780199242511?cc=es&lang=en&#. Accessed 27 June 2017.
Delgado, M., Porter, M., & Stern, S. (2016). Defining clusters of related industries. Economic Geography, 16, 1–38.
Greif, A. (1994). Cultural beliefs and the organization of society: a historical and theoretical reflection on collectivist and individualist societies. Journal of Political Economy, 102(5), 912–950.
Hospers, G. J., & Beugelsdijk, S. (2002). Regional cluster policies: learning by comparing? KYKLOS. International Review for Social Science, 55(3), 381–402.
Keeble, D., & F. Wilkinson. (2002). High-technology clusters, networking and collective learning in Europe. GeoJournal 56(2), 167–169. https://www.jstor.org/stable/41147679?seq=1#page_scan_tab_contents. Accessed 27 June 2017.
Ketels, C. (2011). Clusters and Competitiveness: Porter’s Contribution. In Huggins, R. & Izushi, I. (Eds.) Competition, Competitive Advantage, and Clusters: The Ideas of Michael Porter. Oxford: Oxford University Press. https://global.oup.com/academic/product/competition-competitive-advantage-and-clusters-9780199578030?cc=es&lang=en&. Accessed 27 June 2017.
Kherallah, M., & Kirsten, J. (2001) The new institutional economics: applications for agricultural policy research in developing countries. MSSD discussion paper, vol. 41, pp 1–50.
Kiese, M. (2008). Cluster Approaches to Local Economic Development: Conceptual Remarks and Case Studies from Lower Saxony. In: Blien, U., & Maier, G. (Eds.) The Economics of Regional Clusters. Networks, Technology and Policy. Cheltenham: Edward Elgar.
Konstantynova, A., & Wilson, J. R. (2017). Looking into the Context. Regional SWOT Analysis Report. https://www.interregeurope.eu/clusters3/library/. Accessed 27 June 2017.
Marshall, A. (1890). Principles of Economics. Philadelphia: Porcupine Press.
Martin, R., & P. Sunley. (2003). Deconstructing clusters: Chaotic Concept or Policy Panacea? Journal of Economic Geography, 3(1), 5–35. http://apps.webofknowledge.com/full_record.do?product=UA&search_mode=MarkedList&qid=70&SID=W1almxTVSKqmLuCPjq7&excludeEventConfig=ExcludeIfFromFullRecPage&page=1&doc=11. Accessed 27 June 2017.
Maskell, P., & L. Kebir. (2005). What qualifies as a cluster theory? DRUID Working Paper 05-09. http://econpapers.repec.org/paper/aalabbswp/05-09.htm. Accessed 27 June 2017.
Morgan, G. (1997). Images of Organization. Thousand Oaks: Sage Publications.
Nee, V. (2003). New institutionalism, economic and sociological. Handbook for Economic Sociology, pp 1–7 (October).
North, D. C. (1991). Institutions. The Journal of Economic Perspectives, 5(1), 97–112.
Ottati, G. D. (1996). The remarkable resilience of the Industrial Districts of Tuscany. In Cossentino, F., Pyke, E., & Sengenberger, E. (Eds.) Local and Regional Response to Global Pressure. The Case of Italy and Its Industrial Districts. Geneva: International Labour Office (ILO).
Porter, ME. (1990). The competitive advantage of Nations. Harvard Business Review. https://hbr.org/1990/03/the-competitive-advantage-of-nations. Accessed 27 June 2017.
Porter, M. E. (1998). On Competition. Boston: Harvard Business School Press.
Porter, ME., & Ketels, C. (2009). Clusters and Industrial Districts: common roots, different perspectives. A handbook of industrial districts, 172–183. https://scholar.google.com/citations?view_op=view_citation&hl=en&user=e6Rwdr0AAAAJ&citation_for_view=e6Rwdr0AAAAJ:W7OEmFMy1HYC. Accessed 27 June 2017.
Rosenfeld, S. A. (2005). Industry clusters: business choice, policy outcome or branding strategy? Journal of New Business Ideas and Trends, 3, 4–13.
Scott, A. J. (1998). Regions and the World Economy: The Coming Shape of Global Production, Competition, and Political Order. Oxford: Oxford University.
Sölvell, Ö., Lindqvist, G., & Ketels, C. (2003). The Cluster Initiative Greenbook. 1st. Stockholm: Bromma tryck AB.
Valdaliso, J.-M., & Wilson, J. R. (2015). Strategies for Shaping Territorial Competitiveness. Abingdon: Routledge.
Williamson, O. E. (2000). The new institutional economics: taking stock, looking ahead. Journal of Economic Literature, 38(September), 595–613.
World Bank. (2009). “Clusters for competitiveness: a practical guide and policy implications for developing cluster initiatives.” SSRN Working Paper Series (February). http://search.proquest.com/docview/189871873?accountid=10297%5Cnhttp://ssrn.com/abstract=1392479. Accessed 27 June 2017.
Acknowledgement
The authors acknowledge Interreg Europe Cluster3 Project, Basque Government Department of Education, Language Policy and Culture and anonymous reviewers.
Author information
Authors and Affiliations
Corresponding author
Ethics declarations
Conflict of interest
On behalf of all authors, the corresponding author states that there is no conflict of interest.
Rights and permissions
About this article
Cite this article
Konstantynova, A., Wilson, J.R. Cluster policies and cluster institutions: an opportunity to bind economic and social dimensions?. Econ Polit Ind 44, 457–472 (2017). https://doi.org/10.1007/s40812-017-0081-x
Received:
Revised:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s40812-017-0081-x