This monthly selection of articles is been carried out by Philippe Gugler and Samuel Ferreira Gomes, 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.

Do clusters create  shared value? A social network analysis of the motor valley case

By: F. G. Alberti, F. Belfanti. Competitiveness Review, DOI: 10.1108/CR-05-2020-0077, 2021.

Abstract: “Purpose: This paper aims to contribute to the debate about creating shared value (CSV) and clusters, by shedding light on how clusters might generate shared value, i.e. cause social and business benefits, hence focusing on the following research question “do clusters create shared value?” Design/methodology/approach: The study relied on social network analysis methods and techniques. Data have been collected from both primary and secondary sources, in the empirical context of the Motor Valley cluster in Emilia-Romagna. The authors computed three independent and four dependent variables to operationalize the concept of cluster development and shared value creation. A multiple regression quadratic assignment procedure and, more specifically, the most accurate model of that procedure, that is the double semi-partialling method, has been carried out to answer the research question. Finally, empirical evidence has been complemented with other cluster-level data recently collected by the Italian Cluster Mapping project. Findings: The findings confirm how the development of the Motor Valley cluster in Emilia-Romagna contributed to the creation of economic and social growth opportunities for all the actors. The study shows that clusters do create shared value and the chosen cluster development variables do explain much of the business and social impact variables at a very high statistical significance level. Originality/value: The paper contributes to the under-explored research on clusters and CSV with a very first attempt in providing quantitative evidence of the phenomenon.” [ABSTRACT FROM AUTHORS]

The organizational  adaption of universities to smart specialization: the emergence of strategic  network interface units

By: L. Fonseca, C. Rodrigues, J. L. Capelleras. European Planning Studies, DOI: 10.1080/09654313.2020.1854188, December 2020.

Abstract: “Universities are increasingly expected to engage in regional innovation policy. This has reinforced the need for organizational adaptation of university structures to respond to these new challenges. Recently, a variation in the typical knowledge transfer structures has emerged: strategic network interface units. These units are multidisciplinary and cluster-like formal networks led by universities in collaboration with businesses, government authorities and other organizations. This paper compares the organizational adaptation of two universities – the University of Aveiro and the Autonomous University of Barcelona – as they assume increased responsibilities in regional innovation dynamics. Through interview-based analysis, findings suggest these interface units were created to support the alignment of the universities with smart specialization strategies and EU priority areas for accessing funding. However, while the original aims of these units are very similar, their institutional and operational configuration has led to different cooperative arrangements. Transversal communication based on trust and capacity-building was an important supporting factor in the innovation impact of these units.” [ABSTRACT FROM AUTHORS]

Industrial Clusters, Networks  and Resilience to the Covid-19 Shock in China

By: R. Dai, D. Mookherjee, Y. Quan, X. Zhang. NBER Working Papers, No 28000, 2020.

Abstract: “We examine how exposure of Chinese firms to the Covid-19 shock varied with a cluster index (measuring spatial agglomeration of firms in related industries) at the county level. Two data sources are used: entry flows of newly registered firms in the entire country, and an entrepreneur survey regarding operation of existing firms. Both show greater resilience in counties with a higher cluster index, after controlling for industry dummies and local infection rates, besides county and time dummies in the entry data. Reliance of clusters on informal entrepreneur hometown networks and closer proximity to suppliers and customers help explain these findings.” [ABSTRACT FROM AUTHORS]

Regional entrepreneurship and innovation:  historical roots and the impact on the growth of regions

By: A. Del Monte, S. Moccia, L. Pennacchio. Small Business Economics, DOI: 10.1007/s11187-020-00425-w, 2020.

Abstract: “This paper proposes a conceptual framework in which a historical cultural environment based on scientific knowledge and creativity is an important driver of long-term regional entrepreneurship and innovation. These two factors, in turn, foster the growth of regions. This framework is empirically tested in Italy using current and historical data at the NUTS 3 geographical level and applying structural equation modeling to a system of three equations. The empirical evidence supports the conceptual framework and shows that the cultural environment has an indirect effect on regional growth through entrepreneurship and innovation. Historical scientific knowledge, proxied by the presence of universities, and past creativity, proxied by the presence of scientists and inventors in the area, positively affect long-term regional entrepreneurship and innovation. Regions with higher levels of entrepreneurship and innovation grow faster than other regions. Lastly, entrepreneurship plays a crucial role by also strengthening the positive impact of innovation on growth.” [ABSTRACT FROM AUTHORS]

Dynamics and Factors  of Innovation Gap Between the European Union and China

By: A. M. Kowalski. Journal of the Knowledge Economy, DOI: 10.1007/s13132-020-00699-1, 2020.

Abstract: “The article focuses on the problem of innovation gap in the world economy, as there are in general countries with developed national innovation systems, playing the role of technology leaders, and those with developing innovation systems, acting as innovation followers. Western European economies belong usually to the first group whereas China is traditionally classified in the second group; however, the analysis conducted in this study reveals a continuous catch-up process of this country towards the European Union in terms of the level of innovativeness of the economy. The purpose of this paper is to measure the dynamics of innovation gap between China and the EU average, and to identify the determinants of its evolution. Although for most of the analyzed indicators related to innovation, China’s performance is much below the EU average, the growth rates for Chinese economy in 2008–2018 have been higher than these of the EU, indicating convergence process. The key to development success in China lies in closing the technological gap by importing existing technology and strengthening internal capabilities to utilize and improve on those technologies. Different reasons for China’s economy improvement in terms of innovativeness are analyzed, including external factors (e.g., foreign direct investments, which are concentrated mostly in eastern provinces, and associated technology transfer) and internal aspects (like science, technology and innovation policy, investment in research and development, and emergence of innovative regional clusters). The conclusion is that dynamic processes of increasing innovative potential of China provide with a solid fundamental for further convergence and diminishing innovation gap between this country and the European Union.” [ABSTRACT FROM AUTHOR]

Circularities and proximities within  resource valuation systems: insights from territory-based initiatives in the  forestry sector

By: J. Lenglet, V. Peyrache-Gadeau. European Planning Studies, DOI: 10.1080/09654313.2020.1846686, 2020.

Abstract: “The multiplication of local-based labelling systems in the forestry sector seems to echo a growing pressure from both globalization and sustainability expectations. Recent prospects in territorial economics invite us to consider not only the way specific resources are activated, but the terms of their valuation as well. We do this through the examination of six case studies in three French mountain ranges: the Alps, the Vosges and the Jura. We analyse the way institutionalized groups of actors shape and use value portfolios and highlight their role in implementing new types of circularities. We show that wood product labels are increasingly built upon territorial values, notably through the activation of various forms of proximities (spatial and relational). Although very recent, these initiatives attempt to legitimize themselves as ‘counter-norms', questioning the dominant production-distribution model.” [ABSTRACT FROM AUTHORS]

Integrated Approach for Assessing the  Economic Security of a Cluster

By: A. Polyanin, L. Pronyaeva, A. Pavlova, O. Fedotenkova, D. Rodionov. International Journal of Technology, Vol. 11, Iss. 6, November 2020.

Abstract: “The aim of the study is to develop scientific and methodological recommendations that can contribute to the timely identification of real and potential economic threats in a cluster. In present-day conditions, clusterization is one of the most effective ways to overcome systemic challenges and crisis phenomena in the economy. Integration of independent organizations into clusters, based on principles of localization, integration and synergy, has the purpose of increasing their competitiveness. At the same time, cluster functioning is connected to various risks and threats that reduce sustainable development and affect the level of economic security of both the cluster and its participants. During the research, general scientific methods, such as the generalization, synthesis and analysis of the accumulated scientific results were evaluated in terms of ensuring the economic security of organizations, including their cluster. A number of techniques and methods were applied to develop the proposed integrated approach to assessing the economic security of clusters: typology, identification, rating-and-scores, and the indicative method. A critical assessment of the existing methods for assessing the economic security of clusters was given. It was revealed that the main drawback of these methods is that they do not consider the complicated internal management structure of a cluster. We created a methodology for assessing the economic security of a cluster, which is characterized by a comprehensive approach considering all the possible risks and threats in the functioning of the individual components of the cluster structure.” [ABSTRACT FROM AUTHORS]

How ‘smart’ are Smart Specialisation strategies?

By: M. Di Cataldo, V. Monastiriotis, A. Rodríguez-Pose. Human Geography and Planning, December 2020.

Abstract: “The introduction of Smart Specialisation (S3) as a fundamental pillar of the 2014 reform of the European Union (EU) Cohesion Policy has represented a significant strategic shift in European development intervention. S3 strategies are aimed at mobilising the economic potential of each country and region of the EU, by allowing a more place-based and bottom-up approach to development. However, despite the salience that S3 has acquired in a short period of time, there has been no European-wide evaluation of the extent to which S3 strategies truly reflect the economic characteristics and potential of the territories where they are being implemented. This paper examines the characteristics of S3 strategies across Europe “by focusing on their development axes, economic/scientific domains, and policy priorities“ to assess whether this is the case. The results show that S3 strategies display a proliferation of objectives, a problem which particularly affects those areas with weaker government quality. Moreover, strategies are generally loosely connected with the intrinsic conditions of each region and mostly mimic what neighbouring areas are doing. The lack of more concise and focused S3 strategies is likely to undermine the effectiveness of what is, otherwise, a very interesting and worthwhile policy experiment.” [ABSTRACT FROM AUTHORS]

The local co-evolution of firms and  governments in the Information Age

By: S. Lundan, J. Cantwell. Journal of International Business Studies, Vol. 51, pp. 1516–1528, 2020.

Abstract: “The governance structures of the value-creating activities of MNEs have evolved towards more networked forms that are geographically highly concentrated and involve partnering with diverse actors. The experimentation that takes place within these corporate networks has a parallel on the government side, where subnational governments, and particularly cities as hubs of economic activity, have increased their profile and level of cooperative activity. We argue that engagement in these partnerships is an essential way in which firms and governments co-evolve and create the basis for sustainable economic growth in the Information Age. While the origins of this collaborative form of governance reside in the increasing knowledge intensity of value creation, its implications go far beyond MNE value creation and capture, extending to issues of global governance such as climate change and sustainable development goals. We examine the implications of this process of co-evolution both in terms of the costs of developing the requisite corporate capabilities as well as the legitimacy of these efforts as part of a deliberative democracy.” [ABSTRACT FROM AUTHORS]