Network Structure and Industrial Clustering Dynamics in the Aerospace Industry

Ekaterina Turkina, Ari Van Assche and Raja Kali

CIRANO Working Papers from CIRANO

Abstract: We use a new firm level dataset to study the network of formal firm linkages within and across 52 aerospace clusters in North America and Europe over the period 2002-2014. Applying community structure detection techniques, we find that the structure of the overall network has changed over time. We organize sub-networks by linkage type and find two important trends in their evolution. First, new linkages in the vertical buyer-supplier sub-network are generally formed in a hierarchical hub-and-spoke fashion, whereas new links in the horizontal partnership sub-network are generated in a more decentralized and cohesive manner. Second, the geographical scope of new linkages is different, with vertical buyer-supplier and investment linkages moving increasingly trans-local and partnership linkages becoming more localized. Taken together, our findings suggest that the overall network is evolving from a geographically partitioned community structure to a hierarchical community structure that is stratified along value chain stages.

Keywords: industrial clusters; local and trans-local linkages; community structure detection; small world analysis (search for similar items in EconPapers)
JEL-codes: F23 F61 L14 L62 (search for similar items in EconPapers)
Date: 2016-04-08
New Economics Papers: this item is included in nep-bec, nep-com, nep-cse, nep-geo, nep-pr~, nep-net and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:cir:cirwor:2016s-14

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