Beyond the Knowledge-Based Theory of the Geographic Cluster

Alexander Cole ()

No 708, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

Abstract: The knowledge-based theory of the geographic cluster represents a major attempt to re-conceptualize clusters, in essence arguing that the localization of firms in similar and related industries stimulates learning and innovation, giving a competitive advantage to clustered firms. This paper critically examines the knowledge-based theory the cluster, arguing that it has greatly overstated the advantages of co-location to firms and misidentified the mechanisms through which learning occurs in clusters. In particular, the theory is criticized on three points: the flexible, under-specified way that it defines its object of study; the focus on firms as an explanatory variable instead of more fundamental processes of resource accumulation; and the functionalist mode of theory that employs as an explanation. Ways to address of each of these issues are discussed. In a final section I suggest that the rather static notions of learning put forward in the knowledge-based theory of the cluster be replaced by a developmental theory of regional dynamics that focuses on both learning and structural transformation.

Keywords: geographic cluster; localization; relatedness; knowledge-based theory (search for similar items in EconPapers)
Pages: 34 pages
Date: 2007-11, Revised 2007-11
New Economics Papers: this item is included in nep-cse, nep-geo, nep-knm and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:egu:wpaper:0708

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