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 cluster’s internationalization as a catalyst for its innovation system’s access to global markets

Abstract: “Purpose – The paper aims to illuminate the platformcreated by a cluster organization to facilitate its internationalization andthereby enhance its regional innovation system partners’ competitiveness byproviding access to global value chains and boosting innovativeness. Design/methodology/approach – The studydraws upon the interaction approach, focusing on the interaction process,interaction partners, relationship atmosphere, and relationship environment. Aqualitative study was conducted at Future Position X, a Swedish clusterorganization. A total of 58 interviews were conducted, including 48face-to-face in-depth interviews between 2017 and 2019 with six key informantsat FPX, representatives from 28 SMEs, ten members of regional innovationsystems to which FPX belongs, and four process leaders of regional and localnetworks, in addition to online interviews with ten members of the regionalinnovation systems conducted via Microsoft Teams in March 2021. The time spanof the study provides a longitudinal perspective. Findings – The FPX cluster collaborates with actors in thequadruple helix, maintaining a mindset that has led to a number of new partneragreements in the global arena to secure the resources and expertise necessaryfor cluster activities, and thereby ensuring firms in FPX networks access toplatforms for international expansion. Internationalization thus expands thecluster’s knowledge base beyond the traditional environment of its memberfirms. Research limitations/implications– Very few innovations arise from the isolated work of a lone genius. Instead,most innovation is achieved through complex, interactive, iterative andcumulative learning processes in which a variety of actors are involved. TheFPX cluster organization’s internationalization platform is therefore vital tothe internationalization of its partners since cluster actors lack the time,resources, knowledge, experience, and networks required to break intointernational markets singlehandedly. Practicalimplications – This study suggests that, for practitioners and researchersalike, the growing importance and relevance of the regional innovation systemcannot be overemphasized. It also holds policy and societal implications inthat FPX’s global network helps regional SMEs to internationalize, in additionto inspiring international firms to establish operations in the Gävleborgregion, thereby helping to strengthen the overall GIS environment.Internationalization also expands the FPX cluster’s knowledge base beyond thetraditional environment of its firms, an example of this being the constructionstart of a Microsoft data centre in the region in 2020. Social implications – FPX is financed through taxation and grantfunding. By initiating projects, creating relationships and buildingcollaborations, FPX thus contributes to collaboration between business,academia and the public sector. FPX also contributes to knowledge developmentof new technology by creating meeting places and networks around digitalissues, such as GIS, AI, the IoT and blockchain technology. Originality/value – While earlierresearch has concentrated on endogenous gaps critical to cluster dynamics,comparatively little attention has been paid to exogenous gaps, i.e. linkagesbetween regional clusters and innovation partners elsewhere in the world. Thisstudy showcases the richness of interactions in the cluster against thebackground of wider, global innovation interactions. Future research shouldexamine other vital questions that remain unanswered, e.g. by measuring andexploring the extent to which regional innovation systems can contribute tolong-term economic growth for society.” [ABSTRACT FROM AUTHORS]

Characteristics and Determinants of China’s Ice-and-Snow  Tourism Industrial Cluster 

By C. Song, T. Yin, X. Li, W. Chen, S. Li. Journal of Resource and Ecology, DOI: 10.5814/j.issn.1674-764x.2022.04.003, June 2022.

Abstract: “Ice-and-snow tourism (IST) is a booming industry, and the development of its industrial clusters reflects its regional development quality. Taking 1985–2021 data for China's IST enterprises, this study used industrial cluster identification and industrial correlation analysis to explore the development of IST industrial clusters. The following results were obtained: (1) China's IST initially formed hotspot industrial clusters in Beijing-Tianjin-Hebei, the Northeast, the Yangtze River Delta, the Pearl River Delta, Chengdu-Chongqing, and Xinjiang regions. (2) Multiple industry forms failed to become deeply integrated into development, indicating a need to optimize the structure of the IST industrial chain. (3) The development environment of IST industrial clusters in each province showed differentiated characteristics. (4) IST industrial clustering was affected by both internal and external factors. External factors were grouped into climate and ice-and-snow resources, government policies and sports events, and economic fundamentals and market conditions. Internal factors included industrial association and industrial integration in the IST industrial cluster. Based on this study's identification of the characteristics of China's IST industrial clusters, countermeasures are proposed for their optimal development.” [ABSTRACT FROM AUTHORS]

Formal clusters supporting small  firms’ internationalization: a case of public-private interaction

By: E. Carloni. Journal of Business & Industrial Marketing, DOI: 10.1108/JBIM-06-2021-0283], June 2022.

Abstract: “Purpose – This study aims to explore the role played by a formal cluster initiative in supporting small firms’ internationalization processes. Taking a public–private interaction perspective, this study aims to understand interaction mechanisms within an internationalization project implemented by a formal cluster initiative. Design/methodology/approach – This study uses a qualitative approach based on a case study of a Swedish formal cluster initiative involved in an internationalization project. The case is analyzed through the industrial marketing and purchasing approach, relying on the Actors–Resources– Activities (ARA) framework. Findings – The analysis highlights the role of formal clusters as supporters and “accelerators” of internationalization processes. Based on the ARA framework, the roles of the public and private actors emerge: the cluster plays the role of orchestrator, supporter and financer, while on the businesses’ side, participants assumed the role of customers, displaying various degrees of interest and commitment and giving rise to a leader– follower pattern. Activities occurred at multiple levels, interorganizational, intraproject, interprojects, through different timings and typologies. The main resources at stake were the combination of knowledge, complementary capabilities and financial incentives. Originality/value – This empirical study provides novel empirical evidence and theoretical development over the phenomenon of formal clusters. This study contributes to the current debate on public–private interaction mechanisms and to the upgrading and circulation of international business knowledge.” [ABSTRACT FROM AUTHOR]

Modeling clusters from the ground  up: A web data approach

By: C. Stich, E. Tranos, M. Nathan. Urban Analytics and City Science, DOI: 10.1177/23998083221108185, June 2022.

Abstract: “This paper proposes a new methodological framework to identify economic clusters over space and time. We employ a unique open source dataset of geolocated and archived business webpages and interrogate them using Natural Language Processing to build bottom-up classifications of economic activities. We validate our method on an iconic UK tech cluster – Shoreditch, East London. We benchmark our results against existing case studies and administrative data, replicating the main features of the cluster and providing fresh insights. As well as overcoming limitations in conventional industrial classification, our method addresses some of the spatial and temporal limitations of the clustering literature.” [ABSTRACT FROM AUTHORS]

New business capacity of developed, developing and least  developing economies: inspection through state-of-the-art fuzzy clustering and  PSO-GBR frameworks

By: I. Ghosh, R. K. Jana, P. Pramanik. Benchmarking: An International Journal, DOI: 10.1108/BIJ-09-2021-0528, June 2022.

Abstract: “Purpose – It is essential to validate whether a nation’s economic strength always transpires into new business capacity. The present research strives to identify the key indicators to the proxy new business ecosystem of countries and critically evaluate the similarity through the lens of advanced Fuzzy Clustering Frameworks over the years. Design/methodology/approach – The authors use Fuzzy C Means, Type 2 Fuzzy C Means, Fuzzy Possibilistic C Means and Fuzzy Possibilistic Product Partition C Means Clustering algorithm to discover the inherent groupings of the considered countries in terms of intricate patterns of geospatial new business capacity during 2015–2018. Additionally, the authors propose a Particle Swarm Optimization driven Gradient Boosting Regression methodology to measure the influence of the underlying indicators for the overall surge in new business. Findings – The Fuzzy Clustering frameworks suggest the existence of two clusters of nations across the years. Several developing countries have emerged to cater praiseworthy state of the new business ecosystem. The ease of running a business has appeared to be the most influential feature that governs the overall New Business Density. Practical implications – It is of paramount practical importance to conduct a periodic review of nations’ overall new business ecosystem to draw action plans to emphasize and augment the key enablers linked to new business growth. Countries found to lack new business capacity despite enjoying adequate economic strength can focus effectively on weaker dimensions. Originality/value – The research proposes a robust systematic framework for new business capacity across different economies, indicating that economic strength does not necessarily transpire to equivalent new business capacity.” [ABSTRACT FROM AUTHORS]

Aerospace sector innovation in Portugal and Andalusia: a  search for cross-border collaboration opportunities

By: A. Lorenzo-Espejo, M. L. Munoz-Diaz, J. Munuzuri, B. Ribeiro. European Planning Studies, DOI: 10.1080/09654313.2022.2101879, July 2022.

Abstract: “The aerospace industry is one of the main drivers of the economies of Portugal and Andalusia (Spain), where it generates more than 30,000 jobs and sales of over 4000 million euros. This study analyses the needs and capacities regarding innovation of companies and R&D centres in the aerospace sector of both regions. 277 entities of Portugal and Andalusia provided valid responses to a questionnaire concerning 107 innovation resources. Regional and cross-border collaboration opportunities have been detected utilizing the survey data. The results show that the productivity and innovation capacity of companies in the sector could increase in both territories through better use of the existing resources. A significant set of identified needs can be addressed by capacities existing in the neighbouring region, which supports the urgency to enhance cross-border collaboration. Additionally, a basis for the prioritization of future investments is provided through the identification of several fields with weak innovation capacity.” [ABSTRACT FROM AUTHORS]

Firm growth in the Portuguese  footwear industry: the location dilemma

By: R. Vaz. The Annals of Regional Science, DOI: 10.1007/s00168-022-01152-8, June 2022.

Abstract: “The purpose of this paper is to empirically address the relationship between regional firm density and the growth of firms in the Portuguese footwear industry. Although 80% of the firms belonging to this cluster are mainly geographically concentrated in two poles, we find that location is not significantly correlated with growth. To understand our disparate results on location, we adopted a graphical criterion to separate firms into two groups, taking firms surrounded by 200 firms as a threshold. We fit a separate linear regression for these two subsets of data to find that there exist two different patterns for regional firm density: location is negatively correlated with growth for the group of firms surrounded by less than 200 firms and positively correlated for the group surrounded by more than 200 firms. This allows us to propose a suggestive explanation: firms surrounded by few firms have more access to resources and can grow fast, whereas firms within a cluster are benefited from the location externalities. Our findings are relevant to guide entrepreneurs wishing to start a new business in this industry, and to Portuguese policymakers to draw public policies aimed to affect entrepreneurs’ location decisions in this sector through subsidies and incentives.” [ABSTRACT FROM AUTHOR]

World City Innovation and Service  Networks and Economic Growth

By: R. Belderbos, F. Benoit, B. Derudder. The Regional Science Association International, DOI: 10.1111/pirs.12687, June 2022.

Abstract: “In addition to their often-cited role as global service hubs, world cities are also global innovation hubs with their connectivity in knowledge networks crucial for the innovation clusters they harbour. While both aspects of world cities' global connectivity may allow their urban economies to grow, we argue that specialization in one of these two networks may increase economic performance. We provide systematic evidence of this substitution effect by examining the changing positions of 129 world cities in inter-city innovation and service firm networks (2000–2012). Fixed effects panel analysis of city GDP growth confirm that the two networks are partial substitutes.” [ABSTRACT FROM AUTHORS]