This monthly selection of articles has been carried out by Philippe Gugler and Damiano Lepori, 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.

Clusters, economic performance, and social cohesion: a system dynamics  approach

By: H. Rocha, M. Kunc, D. B. Audretsch. Regional Studies, DOI: 10.1080/00343404.2019.1668550, 2019.

Abstract: “Cluster policies pervade all regions of the world to promote employment growth, innovation and entrepreneurship. Yet, research mostly focuses on cluster economic performance, but less on regional social cohesion, which is important when economic growth coexists with deprivation, poverty and inequality. The paper’s aim is to understand both the economic and the social dynamics of clusters by developing a theoretical model based on system dynamics. It shows that clusters with positive economic performance do not necessarily lead to regional social cohesion. Multiple positive economic-related feedback processes can be mitigated by negative social-related feedback processes. Implications for academics and policy-makers are proposed.” [ABSTRACT FROM AUTHORS]

A shot in the dark? Policy influence on cluster networks

By: H. Graf, T. Broeckel. Utrecht University, Human Geography and Planning, Papers in Evolutionary Economic Geography, No. 19.27, 2019.

Abstract: “Cluster policies are often intended and designed to promote interaction in R&D among co- located organisations, as local knowledge interactions are perceived to be underdeveloped. In contrast to the popularity of the policy measure little is known about its impact on knowledge networks, because most scientific evaluations focus on impacts at the firm level. Using the example of the BioRegio contest, we explore cluster policy effects on local patent co-application and co-invention networks observed from 1985 to 2013, in 17 German regions. We find that the initiative increases network size and innovation activities during the funding period but not afterwards. The impact of the BioRegio contest on network cohesion is moderate. In contrast, general project-based R&D subsidisation is found to support cohesion more robustly.” [ABSTRACT FROM AUTHORS]

Pushing regional studies beyond its borders

By: J. Harrison, M. Delgado, B. Derudder, I. Anguelovski, S. Montero, D. Bailey, L. De Propris. Regional Studies, DOI: 10.1080/00343404.2019.1672146, 2019.

Abstract: “This paper explores how to push the field of regional studies beyond its present institutional, conceptual and methodological borders. It does this from five perspectives: innovation and competitiveness; globalization and urbanization; social and environmental justice; local and regional development; and industrial policy. It argues that the future of regional studies requires approaches that, in combination, result in the pushing on (by creating), pushing off (by consolidating), pushing back (by critiquing) and pushing forward (by collectively constructing) the field.” [ABSTRACT FROM AUTHORS]

The role of regional contextual factors for science and technology  parks: a conceptual framework

By: A. Poonjan, A. Nygaard Tanner. European Planning Studies, DOI: 10.1080/09654313.2019.1679093, 2019.

Abstract: “Literature on science and technology parks (STPs) lacks a systematic understanding of how regional contextual factors affect the performance of STPs. Most studies focus on park- internal factors and neglect the regional context and connections when evaluating STPs’ performance. This paper provides new insight on the role of regional factors for STPs by combining and discussing existing studies on STP performance with literature on regional innovation systems. We conduct an exploratory, systematic literature review of 64 papers that refer to park-external factors in their studies of STP performance. We identify five regional factors (university and research institutes, industrial structure, institutional settings, financial support and urbanization) and assess how these factors have been shown to play a role for STP performance in previous studies. Based on this review, the paper develops a comprehensive framework of how regional contextual factors influence the performance of STPs, which can be used in designing and/or improving STP-performance while taking regional characteristics and needs into consideration. We believe a dynamic and comprehensive understanding of these regional connections can help improve designs of STPs, and thereby their performance.” [ABSTRACT FROM AUTHORS]

How the practice of clustering shapes cluster emergence

By: A. M. Stephens, J. Sandberg. Regional Studies, DOI: 10.1080/00343404.2019.1667967, 2019.

Abstract: “How successful clusters emerge remains unclear. The paper investigates how the exercise of system-level agency contributes to cluster emergence. It applies a practice perspective and finds that system-level agency is enabled by the ‘practice of clustering’: a recurring set of coordinated and future-oriented activities through which regional actors collectively attempt to restructure the regional context to support cluster emergence better. The findings suggest that the specific practice of clustering that takes root in a given region helps explain why some nascent agglomerations develop into a functioning and viable cluster, while others do not.” [ABSTRACT FROM AUTHORS]

Coming home and (not) moving in? Examining reshoring firms’ subnational location  choices in the United States

By: S. Rasel, I. Abdulhak, P. Kalfadellis, M. L. M. Heyden. Regional Studies, DOI: 10.1080/00343404.2019.1669784, 2019.

Abstract: “The relation between firm characteristics (i.e., size) and domestic location choice (i.e., home state versus other) of reshoring firms, contingent on place (i.e., labour cost, innovation intensity, regulatory incentives) and space (i.e., agglomeration) features of regions is examined. The findings from US manufacturing firms’ reshoring activities from 2008 to 2017 suggest that larger firms are less likely to reshore to their home state. This tendency is strengthened when cost of production in a home state is higher, but offset when states provide higher incentives and have higher levels of agglomeration. Technological innovativeness in the home state did not influence this relation.” [ABSTRACT FROM AUTHORS]

FDI and regional development policy

By: S. Iammarino. FDI and regional development policy. Journal of International Business Policy, ISSN 2522-0691, 2018.

Abstract: “The transformations in the worldwide division of labour brought about by globalisation and technological change have shown an unintended negative effect, particularly evident in advanced economic systems: uneven spatial distribution of wealth and rising within-country inequality. Although the latter has featured prominently in recent academic and policy debates, in this paper we argue that the relevance of connectivity (here proxied by foreign capital investments, FDI) for regional economic development is still underestimated and suffers from a nation-biased perspective. As a consequence, the relationship between the spatial inequality spurred by the global division of labour and the changes in the structural advantages of regions remains to be fully understood in its implications for economic growth, territorial resilience and industrial policy. Furthermore, even though connectivity entails bi-directional links – i.e. with regions being simultaneously receivers and senders – attractiveness to foreign capital has long been at the centre of policy attention whilst internationalisation through investment abroad has been disregarded, and sometimes purposely ignored, in regional development policy agendas. We use three broad-brushed European case-studies to discuss some guiding principles for a place-sensitive regional policy eager to integrate the connectivity dimension in pursuing local economic development and territorial equity.” [ABSTRACT FROM AUTHORS]

Market imperative and cluster evolution in China: evidence from Shunde

By: T. Fu, C. Yang, L. Li. Regional Studies, DOI: 10.1080/00343404.2019.1673329, 2019.

Abstract: “Drawing upon the notion of lock-in in evolutionary economic geography perspective and concept of market imperative in global production network 2.0 theory, this study explores the role of market imperatives of local suppliers in the evolution of local industrial clusters in China. Through a case study of the furniture cluster in Shunde, this paper argues that market imperatives of furniture firms have changed dramatically, urging furniture firms to de-lock from previous low-end domestic markets in China and expand to different market segments in China as well as in other emerging economies. The changing market imperatives led to the breaking-out of lock-ins and the transformation of local clusters in the changing institutional context.” [ABSTRACT FROM AUTHORS]