This monthly selection of articles is been carried out by Philippe Gugler and Basile de Raemy, the Center for Competitiveness, University of Fribourg. The entire selection, carried out since 2013, can be consulted on the academic articles page of our web.

A participatory approach to tracking  system transformation in clusters and innovation ecosystems-Evolving practice  in Sweden’s Vinnväxt programme

By: E. Wise, M. Eklund, M. Smith, J. Wilson. Research Evaluation, DOI: 10.1093/reseval/rvac006, April 2022.

Abstract: “For decades, cluster initiatives and funding programmes have been used as instruments of industrial and innovation policy—addressing system failures by strengthening linkages among actors, fostering innovation, and developing more effective innovation systems. More recently, a growing segment of these initiatives are also focused on driving system-level transformation and contributing to broader societal benefits. This segment is characterized by larger-scale and longer-term strategic efforts involving a variety of stakeholders across different parts of society, aimed at contributing to addressing societal challenges. These characteristics are shared with the emerging frame of transformative innovation policy, which highlights the importance of embedded practices of learning and reflexivity to enable continuous monitoring of progress and inform and adapt the direction of systemic change processes—requiring new approaches to governance and evaluation. Despite deep experience with implementing cluster programmes and other systemic innovation policy instruments, practitioners still struggle with monitoring and evaluation. Current approaches focus on evidencing strengthened innovation (and economic effects) on the level of firms and research actors, and fail to capture contributions on the level of the broader system. This article presents an evolving approach for tracking system transformation in clusters and collaborative innovation initiatives. Through an interactive, co-development process with initiatives in the Swedish Vinnväxt programme, this research proposes a definition and set of system effect categories for cluster initiatives. It tests a participatory approach for tracking their contribution to system-level change over time, providing an initial case on which to build and apply in other transformative innovation programmes.” [ABSTRACT FROM AUTHORS]

Evidencing the  benefits of cluster policies: towards a generalized framework of effects

By J. Wilson, E. Wise, M. Smith. Policy Sciences, DOI: 10.1007/s11077-022-09460-8, May 2022.

Abstract: “Regions around the world employ cluster-based policies as part of their industrial, innovation and development policy mixes. They have become a key tool in smart specialisation strategies and are increasingly used to address societal challenges. Given their popularity and longevity, there is significant demand to better measure and understand the impacts of cluster policies. Yet the diversity of cluster policies employed in different regional competitiveness policy mixes, a complex effect logic and a variety of (mostly intangible) outcomes, and few recognised norms for guiding cluster policy evaluation all hamper a more holistic understanding of their patterns of effects and broader impacts. There lacks a common frame to guide cluster policy evaluation. This paper reviews international evidence on the effects of cluster policy programmes from academic and policy literature, which is then used as an input into a co-creation process with groups of cluster policymakers, practitioners and researchers. The result is a proposal for a generalised framework of effects for cluster policies to support the structuring of cluster policy evaluations and strengthen international policy learning possibilities.” [ABSTRACT FROM AUTHORS]

The changing fortunes and future prospects of a traditional  industrial cluster: Woollen textile production in the Scottish Borders

By: A. J. Scott. The Journal of the Local Economy Policy Unit, DOI: 10.1177/02690942221093039, June 2022.

Abstract: “I examine the development and current situation of the woollen knitwear and woven fabric industry in the Scottish Borders. The paper opens with a brief theoretical exposition of the logic and dynamics of industrial clusters. An overview of the consolidation of the industry as a multifaceted spatial cluster or agglomeration in the 19th century is presented. I then describe changes in the locational structure and productive capacities of the industry over the last several decades. I provide a diagnosis of the industry’s decline in recent years together with an assessment of relevant stocks of region-based resources and capabilities. I argue that the Scottish Borders region lacks many of the pooled competitive advantages typically found in successful clusters but that carefully modulated policy could do much to improve local economic performance in the future. A number of specific policy guidelines focussed on inter-industrial relations, labour markets and institutional infrastructures are examined.” [ABSTRACT FROM AUTHOR]

How virtual clusters affect  innovation performance: Evidence from global hydropower industry

By: N. Kang, G. Xu, X. Mu, H. Yang, Y. Qiao. Journal of Cleaner Production, DOI: 10.1016/j.jclepro.2022.131554, June 2022.

Abstract: “With the fast development of information communication technologies, firms break through geographic restrictions and form into virtual clusters for innovation. Existing studies mostly explore the innovation ecosystem by applying either a macro-level perspective or a micro-level perspective, which cannot answer how firms establish connections in their virtual clusters to promote innovation. Therefore, using large-scale patent data and topological clustering algorithms, this study explores the impacts of firms’ characteristics within the virtual cluster on their innovation in the global hydropower industry from 1987 to 2019. The findings suggest that firms have better innovation performance with higher degree centrality and more structural holes within the virtual cluster. Moreover, small firms benefit more from degree centrality within the virtual cluster than big firms. This paper makes up for the lack of recent research on virtual clusters and provides implications for managers and policymakers.” [ABSTRACT FROM AUTHORS]

Local Employment Impacts of  Connectivity to Regional Economies: The Role of Industry Clusters in Bridging  the Urban-Rural Divide

By: C. K. McFarland, E. H. Grabowski. Economic Development Quarterly, DOI: 10.1177/08912424221094496, May 2022.

Abstract: “This article proposes a new economic development framework – regional economic connectivity – to address the deep and growing urban-rural divide. Regional economic connectivity calls attention to the benefits to local communities of fostering connectivity to industry clusters and economic specializations that are already present in their broader regions. This analysis examines the relationship between growth and connectivity across all U.S. counties and their regions from 2010 to 2016 and finds that local cluster employment grows faster when those jobs are part of regional clusters. The magnitude of the relationship between growth and connectivity varies across the urban-rural hierarchy, with particularly strong results for micropolitan communities. A targeted analysis of Virginia is presented to illustrate these trends and implications for practice.” [ABSTRACT FROM AUTHORS]

Understanding spatial networking and industrial district  evolution from firms’ strategies

By: J. L. Hervas-Oliver, C. Boronat-Moll, M. Peris-Ortiz, R. Rojas-Alvarado. European Planning Studies, DOI: 10.1080/09654313.2022.2078659, June 2022.

Abstract: “Positioned in the study of firm heterogeneity in industrial districts (IDs), this study analyses how mergers and acquisitions (M&A) differ between local and non-local acquirers, impacting district evolution. Focusing on the Castellon ceramic tile district transformation, from acquisitions over 2012–2022, M&A and their implication for the local district are discussed, cross-fertilizing strategy and IDs literatures. Findings, from using mixed-methods, reveal that in IDs, the M&A process remarkably differs between local and non-local firms. While local firms tend to specialize in the related focal business, targeting local acquisitions to achieve internal synergies from a better valuation and integration of acquisitions, foreign firms seek access to tacit knowledge through relational and network synergies through diversification. Effects on the territory from M&A are also discussed.” [ABSTRACT FROM AUTHORS]

The role of social capital in  territorial development: the case of a French post-industrial region

By: A. Gerke, Y. Dalla Pria. Regional Studies, DOI: 10.1080/00343404.2022.2069237, May 2022.

Abstract: “This article analyses the role of social capital in territorial development by investigating the case of a post-industrial territory in France. We use semi-structured interviews with actors in the territory that are linked through a cluster network. The results are structured according to three dimensions of social capital (relational, cognitive and structural) and provide insights for policymakers and members of local business networks. Our study reveals micro-economic factors that lead to social capital formation in a specific territory and sheds light on the impact of social capital on territorial development.” [ABSTRACT FROM AUTHORS]

Study on the Expansion of Flower and Seedling Industrial  Cluster in Taobao Village Driven by Multi-Factors-Cases of the Shuyang County  in in China

By: C. Guo. Preprints, DOI: 10.20944/preprints202206.0231.v1, June 2022.

Abstract: “China’s rural e-commerce has been developing rapidly. Taobao Villages are combination of e-commerce and rural industries. When rural e-commerce coverage evolves from Taobao village to Taobao town, the scale of industrial clusters has been expanding synchronously. This paper investigates flower and seedling industrial cluster in Xinhe Town, Yanji Town and Miaotou Town of Shuyang County, China, and conducts the econometric analysis of the expansive determinants of flower and seedling industrial cluster of Taobao Villages. An effective sample of 263 was obtained through a face-to-face survey of e-merchants of flower and seedling in the Shuyang County of Jiangsu Province. Bases on the structural equation modeling, series of test results show that the data can be used to calculate the path regression. The outcomes shows that creation of e-merchants of flower and seedling, integration of e-commerce platform, supply chain friendliness, involvement of e-commerce service providers, and governmental policy guidance are driving expansion of flower and seedling industrial cluster together, moreover, the five forces interact with each other. This implies that expansion of flower and seedling industrial cluster is a systematic process, each stakeholder needs to pay attention to the role of other forces, and five forces achieve a balanced situation in the cluster.” [ABSTRACT FROM AUTHOR]