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.

The Impact of Industry Clusters on the Performance of High Technology Small and Middle Size Enterprises

By: T. Tong, N. Binti Zainudin, J. Yan, A. Abd Rahman. Sustainability, DOI: 10.3390/su15129333, June 2023.

Abstract: “Based on the theory of independent innovation and competitive advantage, this paper takes industry cluster as the independent variable, long-term high-technology small and middle size enterprises (high-tech SMEs) performance and short-term high-tech SMEs’ performance as the dependent variable, and introduces independent innovation as the mediator variable to explore the impact of industry cluster on high-tech SMEs’ performance. SPSS22.0 was used to test the reliability and validity of the questionnaire distributed to 310 high-tech SMEs in Sichuan, China. SPSS is used for statistical analysis, integrating data entry, organization, and analysis functions. Its basic functions include data management, statistical analysis, chart analysis, and output management. A confirmatory factor analysis was conducted. Amos 24.0 is the structural equation model analysis software. After using Amos 24.0 to construct the SEM (Structural Equation Modelling) to verify the hypothesis, it was found that industry cluster has a significant positive impact on long-term and shortterm high-tech SMEs’ performance, independent innovation has a significant positive impact on longterm and short-term high-tech SMEs’ performance, and independent innovation plays a mediator role in the relationship between industry cluster and high-tech SMEs’ performance. Based on the research results, this paper puts forward the following suggestions: (1) attach importance to independent innovation, introduce relevant technical talents, and improve innovation; and (2) accelerate the formation of clusters to improve the high-tech SMEs’ performance of the whole industry.” [ABSTRACT FROM AUTHORS]

Framework for assessing the sustainability of ESG performance in industrial cluster ecosystems in a circular economy

By: A. Babkin, E. Shkarupeta, L. Tashenova, E. Malevskaia-Malevich, T. Shchegoleva. Journal of Open Innovation: Technology, Market, and Complexity, DOI: 10.1016/j.joitmc.2023.100071, June 2023.

Abstract: “The study conceptualizes the ecosystem of an industrial cluster based on circular economy as an umbrella for co-evolving concepts, such as circular economy, cluster economy and industrial ecology (also comprising the concepts of industrial symbiosis and its subcategory, industrial mutualism). We propose an algorithm for estimating the circularity index in an industrial cluster ecosystem as a metric of sustainable ESG performance. The algorithm consists in calculating the integral circularity index of an industrial cluster ecosystem and its inverse, the circular gap. The algorithm developed relies on calculating the estimates for four projections: waste and emissions;

consumption efficiency; resource efficiency; investments in environmental protection. We then formulated the key drivers of successful ESG strategies in circular industrial ecosystems, also providing metrics, evidence-based data and measurements of the progress in bridging the circularity gap. We used statistical data available from the Rosstat SDG Platform, Platform for Intelligent Environmental Monitoring, Our World in Data, and Food and Agriculture Organization. The approach was validated for an industrial cluster ecosystem based on the circular economy model, evolving in the Russian Federation from 2012 to 2021. The practical significance of our findings is that the theoretical framework, along with the insights gained and the recommendations developed, can be used for integrating the policies based on sustainable development, environmental management, ESG transformation, circular economy, closed-loop economy for industrial ecosystems. The results obtained can serve for constructing strategies, policies, programs, roadmaps and business models for circular industrial ecosystems at the macro-, meso- and micro-levels.” [ABSTRACT FROM AUTHORS]

Innovation districts as strategic urban projects: the emergence of strategic spatial planning for urban innovation

By: H. Kalliomäki, P. Oinas, T. Salo. European Planning Studies, DOI: 10.1080/09654313.2023.2216727, June 2023.

Abstract: “This paper contributes to the emerging research on innovation districts (IDs) by conceptualizing them as strategic urban projects. IDs connect innovative activities to their spatial foundations and thus provide a territorial framework for strategic spatial planning efforts. The extant literature on IDs, focusing mainly on ID characteristics and placemaking, has failed to acknowledge that

ID development requires an integrated planning approach to realize the so-called new union between form and function, which is often executed via strategic urban projects. Integrated planning, as discussed in the literature on strategic spatial planning, emphasizes coordination both between a range of stakeholder interests and between administrative sectors and spatial scales. This, in turn, is often rooted in path-dependent connections between diverse sectors and organizations. A case study examines the gradual adoption of the new strategic planning approach while the Turku Science Park area in the city of Turku, Finland, was being transformed into an ID. It demonstrates the rise of a new integrated rationale in contemporary urban planning and economic development, one that strategically envisions a spatial form for economic development objectives. The case offers lessons for academic and policy debates on ID development, underscoring competence building in strategic spatial planning.” [ABSTRACT FROM AUTHORS]

Artificial intelligence, big data, algorithms and Industry 4.0 in firms and clusters

By: L. Lazzeretti, R. Bois Domenech, J. L. Hervas-Oliver, N. Innocenti. European Planning Studies, DOI: 10.1080/09654313.2023.2220490, June 2023.

Abstract: “This collection on ‘Artificial intelligence, big data, algorithms and Industry 4.0 in firms and clusters’ is introduced exploring the themes discussed by the nine papers and grouped into three categories to uncover new dynamics and identify future research opportunities for clusters and organizations in these transformative times. The first group explores theoretical aspects of AI and its evolution in social sciences, focusing on industry 4.0, smart cities, big data, and other related topics. The second group examines the role of industrial robots in employment, productivity, and knowledge

absorption in industrial districts. The third group discusses innovation in the context of local production systems, AI ecosystems, and the growth and potential of the Metaverse.” [ABSTRACT FROM AUTHORS]

Formation of Agricluster on the Priority of Including Small Farms: Case From Egypt

By: D. El Kayaly. In: Industry Clusters and Innovation in the Arab World, DOI: 10.1108/978-1-80262-871-520231013, June 2023.

Abstract: “Micro-, small-, and medium-sized enterprise (MSME) sectors have a strong influence on the Egyptian economy. Yet, effective formulation of integrated cluster along the value chain can lead MSMEs to become international actors in export-oriented activities. An Agro-Industrial Park is an integrated cluster taking into consideration synergetic agglomeration of agribusiness MSMEs assisting in decreasing deprivation of rural territories. This research aims to present the needs of agriculture MSMEs in Egypt, to describe challenges faced by this specific sector, and to set guidelines for a business model integrating small farmers and producers into an integrated agribusiness cluster. The researcher followed purposive/nonprobability sampling technique of 100 MSMEs research participants. A combination of questionnaires and open-ended interviews were the research instruments of choice along with secondary data. This research focused on agribusiness only and specifically MSMEs in Egypt. There is no agribusiness-integrated cluster in Egypt, even though the agricultural land increased significantly in the past 5 years, leading us to believe that it is imperative to develop agribusiness-integrated clusters in the coming few years.” [ABSTRACT FROM AUTHOR]

Industrial Clusters and the Five Drivers of Regional Productivity in Egypt

By: E. M. M. Abousafi, M. Abouelhassan Ali, J. L. Iparraguirre. In: Industry Cluster and Innovation in the Arab World, DOI: 10.1108/978-1-80262-871-520231008, June 2023.

Abstract: “This chapter applies the five drivers of productivity framework to regional microdata for Egypt and extends it by introducing an index of industrial clusters as an explanatory factor of the productivity performance of local private sector firms. Applying structural equation models, the geographic concentration of sectoral economic activity is found to have a positive and statistically significant effect on labor productivity. The transmission mechanism is conjectured to be the positive spillovers that are created, which local firms can tap into. In contrast, a higher concentration of skilled workers in an industrial sector in a region is associated with lower levels of labor productivity – a finding that suggests there may be structural deficiencies in the allocation of skilled workers. Regional policy should focus on net investments in gross capital formation throughout the country, for which the national and regional governments should improve how public investments are managed and the institutional framework – including the rule of law, bureaucracy and red tape, conflict of interest, transparency, and governance – so that private investment (both local and foreign) may substantially increase.” [ABSTRACT FROM AUTHORS]

Industrial Clusters: Ambassadors for Regional Development: Case Study of Agadir Agreement

By: S. Hammad. In: Industry Clusters and Innovation in the Arab World, DOI: 10.1108/978-1-80262-871-520231014, June 2023.

Abstract: “Building industrial clusters is getting much more political attention and strategic orientation in all developing countries. This study started by revising the conceptual and theoretical frameworks for industrial clusters, followed by some insights and contributions about empirical bases for clusters' dynamics and processes. The study focused on the case of Agadir Agreement between four Arab countries (Egypt, Jordon, Morocco, and Tunisia), which was initiated after the Euro-Mediterranean partnerships, and the rationale of the agreement was based on the concept of cumulative value-added origin. The study based its methodology on analyzing the international and bilateral trade flows of six industrial goods from the automotive sector among the four countries and with the EU countries to detect the degree of industrial collaboration and the achieved success of each country in this sector. The study indicated that the four countries used the concept of industrial clusters for economic development, but the results of the analysis showed that till now Agadir Agreement only achieved a shallow integration, while failed to deeply integrate as one big collaborative industrial cluster.” [ABSTRACT FROM AUTHOR]

Knowledge Sharing Mechanisms and Challenges in a Government-Driven Industry Cluster: A Saudi Arabian Case Study

By: A. Zafer. In: Industry Cluster and Innovation in the Arab World, DOI: 10.1108/978-1-80262-871-520231004, June 2023.

Abstract: “In the context of Saudi Arabia, this chapter investigates how clustering promotes knowledge sharing and transfer in an emerging, government-directed industry cluster. It is determined that lateral actors play a key facilitating role, and formal and informal mechanisms and interpersonal links among actors support that cluster knowledge exchange. Limited social capital strength and depth and a lack of trust that prevents knowledge sharing are partially explained by the cluster's limited vertical and horizontal actors.” [ABSTRACT FROM AUTHOR]

Role of Promotion Policies to Stimulate the Dynamics and Innovation of Clusters: The Case of Palestine

By: S. Sultan, M. P. van Dijk. In: Industry Cluster and Innovation in the Arab World, DOI: 10.1108/978-1-80262-871-520231009, June 2023.

Abstract: “This study aims to analyze the challenges facing five Palestinian clusters and to understand their dynamics and level of development. Using multiple sources of evidence, the research questions are answered using semi-structured interviews and focus group discussions. Content analysis was used to analyze the data obtained. The five clusters in Palestine are located in a complex environment that imposes a mix of challenges that adversely affect their performance. The challenges facing Palestinian clusters are different in terms of their degree of complexity. The common challenges facing the Palestinian clusters are the fundamental lack of innovative stimulation policies or incentives in the Palestinian ecosystem, lack of trust, unfair competition, limited access to finance, lack of access to promising markets, and the limited collaboration between different parties. More focused policies are suggested to the Palestinian authorities.” [ABSTRACT FROM AUTHORS]