This monthly selection of articles is been carried out by Philippe Gugler and Basile de Raemy, from 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.

Re-thinking cluster policies: the  role of shared vision and Place Leadership on the development of resilient  clusters

By: P. Ganske, C. Carbon. Leadership, Education, Personality: An Interdisciplinary Journal, DOI: 10.1365/s42681-023-00032-9, May 2023.

Abstract: “Facing increasing interregional and international competition, the need for innovating economic and socio-institutional structures is virulent. One possibility is establishing clusters to promote the idea that developing a network of companies with a mix of cooperative and competitive practices leads to competitive advantages for the respective area. Organizing clusters means developing a cluster culture, a communication strategy and a selection criterion for creating the desired mix of companies. We base our opinion paper on an extensive literature review of scientific sources about clusters, cluster policy and Place Leadership. We reveal that the prevailing cluster policy often does not lead to sustainably successful clusters. We conclude that we need a shared vision among cluster members to develop resilient clusters. Shared visions create a sense of belonging, social identity, and internalization of values and attitudes. This way, it is possible that a sustainable and trust-oriented network structure can develop, and knowledge spillovers within the cluster, necessary for resilient clusters, can occur. True Place Leadership is crucial to deal with the needed diversity of actors and stakeholders, some of whom are in competition, inspiring, motivating, and guiding shared, cooperative, and collaborative ways of working. Employing Place Leadership can outperform current policy measures in other regional, industrial and structural areas and might even make them redundant.” [ABSTRACT FROM AUTHORS]

SME upgrading in emerging market  clusters: The case of Taiwan’s bicycle industry

By: A. Gerke, M. Benson-Rea, D. Odlin. Journal of Business Research, DOI: 10.1016/j.jbusres.2023.113967, May 2023.

Abstract: “Existing arguments on the economic upgrading of small and medium-sized enterprises (SMEs) in emerging markets emphasise the role of multinational enterprises (MNEs) from developed markets in providing the necessary new knowledge based on a top-down logic. Adopting the Taiwanese bicycle industry cluster as a case study, we investigate alternative factors influencing the upgrading of SMEs in emerging markets through vertical and horizontal relationships within global value chains and clusters. The findings show that knowledge exchange and collaboration via horizontal, trust-based linkages between SMEs within a cluster and the development of formal and informal institutions by leading local MNEs are crucial for the upgrading of locally clustered SMEs. We provide typologies for vertical and horizontal interfirm linkages and show how the combination of linkages affects the upgrading of these emerging market SMEs. Our typologies can assist practitioners with identifying options for successful upgrading through strategic engagement and development in interfirm relationships.” [ABSTRACT FROM AUTHORS]

Research and development intensive  clusters and regional competitiveness

By: R. Kosfeld, T. Mitze. Growth and change: A journal of urban and regional policy, DOI: 10.1111/grow.12676, May 2023.

Abstract: “Modern cluster theory provides reasons for positive external effects that accrue from the interaction of spatially proximate firms operating in common and related fields of economic activity. In this paper, we examine the impact of R&D-intensive clusters as a key factor of regional competitiveness on productivity growth. In relying on a hybrid approach of cluster identification, we examine effects of cluster specialization and diversity for a panel of German NUTS-3 regions in 2003–2019. After controlling for regional characteristics and unobserved heterogeneity, a robust cluster strength effect (i.e., specialization) on productivity growth is found within the context of conditional convergence across German regions. With regard to the underlying mechanisms, we find that the presence of multiple R&D-intensive clusters in specific technological fields is most strongly linked to higher levels of regional productivity growth. We also find that advantages from cluster specialization are strongest in key industrial sector such as automobile production, machinery, chemical and pharmaceutical products. Overall, our estimates particularly highlight the working of Marshallian externalities in productivity dynamics, while Jacobs-type spillovers tend to be partially realized. These findings indicate that some but not all cluster-based regional development strategies are promising policy tools to foster regional growth processes.” [ABSTRACT FROM AUTHORS]

How do clusters drive firm  performance in the regional innovation system? A causal complexity analysis in  Chinese strategic emerging industries

By: L. Zhao, Y. Liang, H. Tu. Systems, DOI: 10.3390/systems11050229, May 2023.

Abstract: “From a configurational perspective, this study aims to explain how clusters drive firm performance in the regional innovation system by considering the relationship between cluster and firm performance as causal complexity. Using an original dataset comprising 292 Chinese firms in strategic emerging industries (SEIs), this study employs a fuzzy set qualitative comparative analysis (fsQCA) to investigate the conjunction effects of interorganizational dependence, network embeddedness, and ambidextrous innovation on cluster firms’ performance. The results showed that the fsQCA method uncovers causal combinations of these cluster factors that lead to high performance. These configurations imply two alternative pathways to enhance performance, where exploitative innovation is identified as the core causal condition.” [ABSTRACT FROM AUTHORS]

Creating and maintaining film clusters: Synthetic control  method analysis of the enactment and repeal of US state film incentives

By: D. S. Rickman, H. Wang. Regional Science, DOI: 10.1111/pirs.12728, April 2023.

Abstract: “The proliferation of US state incentives for film production led to numerous studies of whether the incentives affected production location, including case studies of key early incentive-adopting states. The overall evidence on the efficacy of incentives is mixed. We carry out numerous additional case studies using the synthetic control method (SCM). A unique contribution of the paper is an examination of both the adoption and repeal of incentives. We also assess whether incentives have spillover effects between production and other activities within the film industry, whether spatial spillovers affect the SCM estimates, and whether the incentive effects are long lasting.” [ABSTRACT FROM AUTHORS]

Identification of creative clusters and understanding its  relation with heritage building clusters in Bandung, Indonesia

By: B. Vikri Prayuko, Y. Karyadi Kusliansjah. International Journal of Multidisciplinary and Current Educational Research, vol. 5, no. 3, pp. 58-70, April 2023.

Abstract: “The city of Bandung stands as a UNESCO Creative City Network in the Design sub-category in 2015 and has urban spaces with distinctive physical-spatial aspects and city characteristics, but so far there has been no in-depth study related to creative clusters in the city of Bandung which are linked to physical aspects. Spatial, and urban character. The purpose of this study was to identify the location of the creative cluster and relate it with the location of the heritage building cluster. The type of research carried out is quantitative-descriptive by processing creative industry. The data analysis method was carried out using the Geographical Information System approach through Nearest Neighbor Analysis and the Density-Based Spatial Clustering of Applications with Noise Clustering method to identify creative clusters. The same method was also used to identify clusters of heritage buildings. The results of research are the identification of thirteen creative clusters were identified. There are findings of spatial physical character relations in the creative cluster with the heritage building cluster. It was found that eleven out of thirteen creative clusters had more than 70% intersected areas of the heritage building cluster. This research shows that there is a close relationship between the existence of the creative cluster and the heritage building cluster in the city of Bandung, and this finding is in line with similar research that has been carried out in other case studies on creative cluster research in cities around the world.” [ABSTRACT FROM AUTHORS]

Decarbonisation strategies in industry: going beyond  clusters

By: I. Rattle, A. Gailani, P. G. Taylor. Sustainability Science, DOI: 10.1007/s11625-023-01313-4, April 2023.

Abstract: “An effective and just industrial transition is necessary both to mitigate climate change and protect jobs, and as a precursor to enable other sectors to decarbonise. Activity is at an early stage and examples of successful sector-wide interventions to decarbonise industry do not yet exist. Governments of industrialised countries are beginning to develop policy and provide funding to support deployment of carbon capture and low-carbon hydrogen infrastructures into high-emitting industrial clusters, but options for sites outside of clusters, denoted here as ‘dispersed sites’, are also required. This paper takes a mixed methods approach to provide the first analysis of the issues facing dispersed industrial sites on their route to decarbonization and to suggest solutions to the challenges they face. Using the UK as a case study, it first characterises dispersed sites in terms of location, emissions released, sectors involved, and size of companies affected. It then shows how these features mean that simply expanding the geographical scope of the present UK decarbonisation strategy, which focuses on the provision of carbon capture and low-carbon hydrogen, would face a number of challenges and so will need to be broadened to include a wider range of abatement options and other considerations to meet the needs of dispersed sites. While the solutions for each place will be different, these are likely to include some combination of the expansion of shared infrastructure, the development of local zero-carbon hubs, research into a wider range of novel abatement technologies and facilitating local participation in energy planning. The paper concludes with a discussion of remaining knowledge gaps before outlining how its findings might apply to industrial decarbonisation strategies in other countries.” [ABSTRACT FROM AUTHORS]

Medical institutions in the geography of innovation:  evidence from public tertiary hospitals and biotech start-ups in Chinese cities

By: X. Nie, H. Liu. Regional Studies, DOI: 10.1080/00343404.2023.2199780, May 2023.

Abstract: “Concerning China’s growth in biotechnology, the research on biotech start-ups in China yields significant implications. However, studies have not given enough attention to hospitals, which are critical players in the biotech industry. Because of the hospital-centric healthcare system, public tertiary hospitals in China are important partners for biotech start-ups. This study investigates the geographical relationship between public tertiary hospitals and biotech start-ups in Chinese cities. The findings suggest evidence of collocation, which reflects their alliances. This research thereby contributes to the existing knowledge of the biotech industry by integrating the healthcare system into the location of biotech firms.” [ABSTRACT FROM AUTHORS]

The role of state agency in path  development: a longitudinal study of two Norwegian manufacturing regions

By: M. Steen, H. Brynthe Lund, A. Karlsen. Regional Studies, DOI: 10.1080/00343404.2023.2195880, May 2023.

Abstract: “The role of the state remains underdeveloped in the regional path development literature. This paper analyses how the Norwegian state via different roles (regulator, purchaser, owner, facilitator) directly and indirectly has enabled and influenced path development in two defence-related high-tech manufacturing regions in Norway since the end of the Second World War, notably by contributing to the modification of localised assets and the strategic coupling of those assets to extra-regional defence-related and civilian markets.” [ABSTRACT FROM AUTHORS]

The role of time management of female tech entrepreneurs in  practice: Diary and interview results from an innovative cluster

By: S. Brecht, S. Le Loarne-Lemaire, S. Kraus, A. Maalaoui. Journal of Business Research, DOI: 10.1016/j.jbusres.2023.113914, April 2023.

Abstract: “This paper focuses on what female tech entrepreneurs who grow their business in innovative clusters are doing in practice. Based on longitudinal data on female entrepreneurs who develop their innovative venture in the cluster of San Diego, and based on an Entrepreneurship as Practice (EAP) theoretical lens, we reveal what innovative entrepreneurs are doing in practice. We show that despite their call for freedom in terms of organization, they are adopting somewhat classical working practices, adapting their working life to the daily routines of their stakeholders. Beyond a huge investment into seeking new clients and project management, these women are spending a significant amount of time on family responsibilities. Results are discussed regarding the role of the innovative ecosystems on these working practices. The contribution relies on the study of practices while innovating and while being a woman and on the use of calendars as a data collection method.” [ABSTRACT FROM AUTHORS]

Towards regenerative regional development in responsible  value chains: an agentic response to recent crises

By: M. Grillitsch, B. T. Asheim. European Planning Studies, DOI: 10.1080/09654313.2023.2205890, May 2023.

Abstract: “In this paper, we empirically and theoretically present regenerative regional development in responsible value chains as an alternative to the prevailing traditional, neoliberal economic rationale of globalization. We develop the argument on the back of a longitudinal in-depth case study on actors’ engagement in the recurring crises in the maritime industry in Sunnmøre/Norway. The alternative perspective is an agentic response from the business community in the wake of recent crises. It builds on advanced manufacturing capabilities, automation and precision technologies, which promise local economic regeneration while reducing the reliance on low-cost labour, substantially cuts emissions through reduced long-haul transport, use of green energy and more energy-efficient production processes. To succeed, however, it calls for policies that promote the building of local capabilities and penalize practices causing environmental and social harm in global value chains, making it possible to move towards responsible and shorter value chains.” [ABSTRACT FROM AUTHORS]