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.

Collective Entrepreneurship in the Spanish Hotel Industry: The Internationalization of a Domestic Cluster

By: J. Hernández-Barahona, T. Mateo, A. Gil-López. Yan, E. San Román. Collective Entrepreneurship in the Contemporary European Service Indutries: A long Term Approach, DOI: 10.1108/978-1-80117-950-820231002, July 2023.

Abstract: “This chapter studies the tourism cluster of Majorca and its connection with collective entrepreneurship. To this end, the authors review the history of four world leading Spanish hotel companies, from their beginnings, in Majorca, in the 1950s, to their internationalization, in the 1980s and 1990s: Barceló, Meliá, Riu, and Iberostar. This allows us to identify common patterns of behaviour among them over time, which in turn illustrate the dynamics of the tourism cluster and the role played by its context. This qualitative and historical research allows us to make the following contributions: first, in line with other studies in the economic history of Spanish tourism, the four cases support the identification of Majorca as a tourism cluster. Second, the authors highlight several important characteristics of the island which reinforced and strengthened the cluster and boosted collective entrepreneurship, through an intense flow of information between the companies. Third, the authors illustrate coopetition as the key nature of the relationship between the clustered companies in a simultaneous process of competition and cooperation. Finally, the authors show how the strength of the tourism cluster, in Majorca, drove the companies to replicate the same dynamics and structures abroad.” [ABSTRACT FROM AUTHORS]

Network Position and Firms’ Exploration Strategies: A Study of Two Regional Industry Clusters in Norway

By: Y. Lin, J. Aarstad, A. I. Rokkan. International Journal of Innovation and Technology Management DOI: 10.1142/S0219877023500475, June 2023.

Abstract: “Management research has examined environmental and organizational antecedents for firms’ exploration. We complement this research by applying a network perspective to explain how firms adjust exploration strategies based on their interorganizational network positions. We particularly focus on two network constructs, closeness centrality and local cohesion. Closeness centrality captures a firm’s independent access to network knowledge and resources, and local cohesion reveals the connections between a focal firm’s associates. Combining network and survey data for 64 firms in two Norwegian regional industry clusters reveals exploration strategies’ association with network position. The positive effect of local cohesion is stronger than closeness centrality’s. Our findings indicate that network drivers act as antecedents of exploration.” [ABSTRACT FROM AUTHORS]

Competition, open innovation, and growth challenges in the semiconductor industry: the case of Europe’s clusters

By: R. Huggins, A. Johnston, M. Munday, C. Xu. Science and Public Policy, DOI: 10.1093/scipol/scad005, June 2023.

Abstract: “In recent years, public policymakers in Europe have become increasingly aware of the need to support Europe’s failing semiconductor industry. This is an emerging policy area, and this paper examines the current state of the industry in Europe and assesses its potential future. It contends that the competitiveness of the industry will be related to its innovative capacity, especially its capability to engage in processes of open innovation. The industry in Europe is largely located in a number of discrete regional clusters, and the analysis focuses on data collected from a series of interviews with lead representatives of these clusters. The analysis indicates that the challenges facing the industry stem from the structure of the industry in Europe and the structure of the wider European technology industry. It is concluded that policies, such as the introduction of the European Chips Act, are likely to have a limited, or even negative, impact on the types of open innovation–led growth that will improve long-term competitiveness.” [ABSTRACT FROM AUTHORS]

Clusters, Business Planning and Economic Growth: Stockholm’s Artificial Intelligence and Big Data Cluster

By: G. Cãlinescu. Sciendo, DOI: 10.2478/picbe-2023-0142, July 2023.

Abstract: “Clusters, which are examples of Porter's diamond in action, may foster creativity. Regional economic development, innovation efforts, and clusters are interdependent. Artificial Intelligence and Big Data can perform activities at a higher level than humans. Recent studies indicate that they are gaining popularity because they can be used to collect, organize, and analyze vast, varied data sets in order to reveal hidden patterns and trends that may be applied to a number of problems. How can Stockholm's Artificial Intelligence and Big Data cluster enhance its competitiveness in light of these factors? How can it be made more appealing? To address these research issues, qualitative research was undertaken using the case study approach and statistical data mostly gathered from the Global Competitiveness Report. Among the most important aspects of this article are the analyses of competitiveness, cluster performance, and main actors of the cluster. The study indicates that Stockholm, the capital of Sweden, has the potential to become one of the world's largest proponents of Artificial Intelligence and Big Data, since it is far more developed than other cities. In addition, a strategy to strengthen the cluster's competitiveness by stressing the implemented actions is proposed. This paper was co-financed by The Bucharest University of Economic Studies during the PhD program.” [ABSTRACT FROM AUTHOR]

Agricultural mechanization in Ethiopia: hiring service transactions, mechanization clusters and land consolidation

By: Y. D. Tefera, B. G. Awoke. Journal of Agribusiness in Developing and Emerging Economies, DOI: 10.1108/JADEE-06-2022-0127, June 2023.

Abstract: “Purpose – Agriculture in Ethiopia relies heavily on traditional farm power sources and is designated by the lowest farm machinery access, in contrast to other Sub-Sahara African (SSA) countries. The purpose of this research is to analyze the heterogeneity of mechanization service transactions and factors determining farmers’ cooperation in mechanization clusters and willingness to accept land consolidation. Design/methodology/approach – The authors conducted a cross-sectional survey of producer households in major crop production areas in the Oromia, SNNPR, Amhara and Tigray regions. The sampling design involved three stages: districts were selected using a stratified sampling approach accompanied by simple random samples of kebele units and producer households in the second and final stages, respectively. Findings – This study’s results show that mechanization service costs, service relationships, clustering and land consolidation exhibit significant heterogeneity across the study areas. Cluster farming was found to be advantageous against diseconomies, rationalized by upgrading the mechanization scale. The probit model parameterization of the probability distributions reveals that household, land, crop, mechanization service, remoteness and location-related factors determine participation in mechanization clusters and willingness to accept land consolidation. Research limitations/implications – Fostering cooperation by focusing on constraints and demand of users is suggested to reduce transaction costs and expand hired mechanization services to unaddressed areas. The findings are relevant to most SSA countries where mechanization development is hampered by land fragmentation. Originality/value – Limited information is available on agricultural mechanization development for smallholder farmers, particularly in Ethiopia, and this study adds empirical evidence about the synergy between cluster farming and mechanization, horizontal coordination and alternative supply models.” [ABSTRACT FROM AUTHORS]

The impact of institutional interactions on cluster response to innovation: The case of Montreal and neural machine translation

By: M. J. Girard, E. Turkina. Canadian Journal of Administrative Sciences, DOI: 10.1002/cjas.1733, June 2023.

Abstract: “Despite the importance of institutions in the cluster literature, scholarship has struggled with its conceptualization of institutions, resulting in an incomplete portrait of diverse phenomena. In response, we crystallize a hybrid stream of institutionalism that has emerged in the economic geography literature and propose the construct of institutional interactions to provide structural and relational insight into cluster-wide resistance to innovation. By pairing network analysis with a genealogical study of the Montreal translation cluster, we isolate the impact of institutional interactions and find preliminary support for the redundancies created by institutional brokers and institutional network characteristics. We demonstrate how to use the construct of institutional interactions to diagnose constraints to innovation in an institutional environment.” [ABSTRACT FROM AUTHORS]

The green to circular bioeconomy transition: Innovation and resilience among Italian enterprises

By: M. R. Alfano, C. Cantabene, A. Lepore, S. Palermo. Business Strategy and the Environment, DOI: 10.1002/bse.3474, June 2023.

Abstract: “The bioeconomy is an essential part of the transition from a linear to a circular production model, which repositions production systems to favour sustainability and innovation. There are two

main contributors to the development of this process: the choices made by public decision-makers (national and European), and the strategies adopted by companies and the recent increased diffusion of new business networks and clusters in Europe, which favour industrial and technological transformation processes. We move from analysis of the international context and how Italy's positioning in the new circular bioeconomy is evolving to focus on the diffusion of business clusters and networks in Europe linked to the circular bioeconomy to propose a preliminary empirical study of corporate behaviour. For this we use survey data on Italian bio-industries that are part of the cluster SPRING (Sustainable Processes and Resources for Innovation and National Growth). The results show how SPRING cluster firms are pushed to improve their positioning in numerous fields characterizing the most innovative business models.” [ABSTRACT FROM AUTHORS]

Tech firm births and agglomeration economies: (un)related variety, specialization, and spatial externalities

By: N. Xiong, Y. Wu, Y. D. Wei. Cities, DOI: 10.1016/j.cities.2023.104349, July 2023.

Abstract: “This paper examined the multi-scalar effects of different types of agglomeration economies, namely, specialization, related variety, unrelated variety, and urbanization economies, on tech firm births in Salt Lake County, Utah, U.S. We found that these agglomeration economies affected tech firm births simultaneously, but their spatial externalities differed across various scales. Specialization and related variety operated at all scales including neighborhood scale while urbanization economies only worked at city-wide scale. Unrelated variety did not affect tech firm births at all scales. Specialization externalities appeared more pronounced at neighborhood scale and its spatial scope was larger than that of related variety. These findings partially explain the recent trend of multiscale clusters of the tech industry and suggest that spatial externalities of agglomeration economies should be understood in different types with a multi-scalar framework. Policymakers and urban planners should highlight this to maintain sustainable development and secure urban success. These findings also imply that distinguishing related and unrelated variety is necessary at neighborhood scale and should not be ignored in local development planning.” [ABSTRACT FROM AUTHORS]

Do creative industries enhance employment growth? Regional evidence from Colombia

By: M. Campi, M. Dueñas, T. Ciarli. Regional Studies, DOI: 10.1080/00343404.2023.2210620, June 2023.

Abstract: “Do creative industries have positive spillovers for the local economy in middle-income countries? While in high-income countries several studies have shown that creative industries are highly innovative and productive, positively impacting the local economy, the evidence is scarce for middle-income countries. Using employment data, we studied the agglomeration patterns of creative industries in Colombia between 2008 and 2017. We found a positive relationship between creative industries’ agglomeration and employment in non-creative services industries. However, using a shift–share instrumental variable approach, we found no significant causality of an increase in creative industries’ employment on employment growth in other industries.” [ABSTRACT FROM AUTHORS]