Cluster Life Cycles - Dimensions and Rationales of Cluster Development

Max-Peter Menzel () and Dirk Fornahl ()

No 2007-076, Jena Economics Research Papers from Friedrich-Schiller-University Jena

Abstract: We present a model that explains how a cluster moves through a life cycle and why this movement differs from the industry life cycle. The model is based on three key processes: the changing heterogeneity in the cluster describes the movement of the cluster through the life cycle; the geographical absorptive capacity enables clustered companies to take advantage of a larger diversity of knowledge and the stronger convergence of clustered companies compared to non-clustered companies results in a reduction of heterogeneity. We apply these processes to four stages of the cluster life cycle: emergence, growth, sustainment and decline.

Keywords: cluster evolution; life cycle; heterogeneity (search for similar items in EconPapers)
JEL-codes: L25 O30 R11 (search for similar items in EconPapers)
Date: 2007-10-30
New Economics Papers: this item is included in nep-cse, nep-geo, nep-ino and nep-tid
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Citations: View citations in EconPapers (35)

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Persistent link: https://EconPapers.repec.org/RePEc:jrp:jrpwrp:2007-076

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