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Download PDF by Kerstin Press: A Life Cycle for Clusters?: The Dynamics of Agglomeration,

By Kerstin Press

ISBN-10: 3790817104

ISBN-13: 9783790817102

ISBN-10: 3790817635

ISBN-13: 9783790817638

The phenomenon of non-random spatial concentrations of corporations in a single or few similar sectors (clusters) is intensively debated in fiscal idea and coverage. The euphoria approximately winning clusters even if neglects that traditionally, many thriving clusters did become worse into previous commercial parts. This e-book reviews the determinants of cluster survival by means of reading their adaptability to alter within the monetary atmosphere. Linking theoretic wisdom with empirical observations, a simulation version (based within the N/K strategy) is constructed, and is the reason whilst and why the cluster's structure assists or hampers adaptability. it really is came upon that architectures with intermediate levels of department of labour and extra collective governance types foster adaptability. Cluster improvement is therefore direction based as architectures having developed over the years impression at the chance of destiny survival.

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Extra info for A Life Cycle for Clusters?: The Dynamics of Agglomeration, Change, and Adaption (Contributions to Economics)

Sample text

As the industry matures, a dominant product design is developed and increasingly adopted by users. Growing demand alongside more fixed product characteristics then allow for a greater integration of production (less division of labour) and firm growth. In addition, the industry’s technology becomes more standardised. As a result, the importance of proximity for knowledge transfer and inter-firm co-ordination declines. The second stage of the cycle would therefore see a consolidation of firm numbers and a growth of the cluster as a whole.

By allowing for a random order in the sequence of firm entry, historical accident (in terms of the location choice of early entrants) leads to a path dependent process yielding different spatial distributions of the industry. Areas ending up as hosts to industry clusters once more grow to their carrying capacity. An exhaustion of these clusters can be brought about by external events changing the benefits conveyed by area-intrinsic factors or those related to agglomeration externalities. Depending on the strength and direction of their impact (increase/ decrease of benefits), such events can lead to a redistribution of the industry, implying exhaustion of existing clusters.

On the one hand, all areas exhibit location-intrinsic factors like raw materials or access to transportation networks. These factors convey a certain geographic benefit to firms, which differs according to firms’ (randomly distributed) locational preferences. On the other hand, the benefits to locating in a site are influenced by the number of local firms as the latter generate agglomeration benefits, which are identical for all enterprises. The total benefits to locating in any area are then the sum of geographic and agglomeration benefits.

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A Life Cycle for Clusters?: The Dynamics of Agglomeration, Change, and Adaption (Contributions to Economics) by Kerstin Press


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