Evolution of Industry Clusters through Spin-offs and the Role of Flagship Firms

Manuel Ferreira (), Ana Teresa Tavares and William Hesterly

Chapter 6 in Multinationals, Clusters and Innovation, 2006, pp 87-106 from Palgrave Macmillan

Abstract: Abstract The manner in which clusters emerge and evolve is important for public policy and corporate strategy. Understanding how and why clusters emerge and develop provides insights into agglomeration phenomena, innovation capacity, location advantages, and may influence local governments’ investments. Extant research has traced the origins of clusters to historical trajectories and to reasonably random and undefined exogenous events (Hendry et al., 2000). In other instances, scholars identify life-cycle patterns to show that clusters are living entities that thrive and fail in response to environmental shifts (Swann, 1998). Others focus on unusual entrepreneurial dynamism and innovation in some regions (Saxenian, 1994; Pinch and Henry, 1999; Feldman, 2001; Zander, 2003). Extant research has two main perspectives: first, the discussion on how innovation may or may not occur as the density of firms in the cluster increases; second, the idea that firms’ co-location induces isomorphic behavior.

Keywords: Domestic Firm; Strategic Management Journal; Parent Firm; Foreign Subsidiary; Industrial Cluster (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-62494-8_6

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DOI: 10.1057/9780230624948_6

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