Clusters as an adaptable regional development measure to mitigate perceived competitive disadvantages

Tine Lehmann and Carola Jungwirth

International Journal of Globalisation and Small Business, 2019, vol. 10, issue 2, 105-126

Abstract: European public policy is intensively supporting clusters as instruments for regional development. Clusters seem to be ubiquitous across Europe. However, economic conditions and institutional constraints in European regions differ substantially. This paper analyses which competitive disadvantages local companies perceive and how the offered cluster services are tailored to address these perceived problems. With the value adding web perspective we analyse two groups of economically weaker regions: transition economies and structurally weaker regions in non-transition economies. We show that the perceived competitive disadvantages differ essentially. Companies in transition economies mainly face obstacles that are rooted in institutional voids. Companies in structurally weaker regions are confronted with blind spot disadvantages. The article demonstrates, that clusters are adaptable to perceived disadvantages and blind spot disadvantages are perceived as 'less important' local problems. This contributes to recognise clusters as a tool to spur regional development and to the debate on smart specialisation of regions.

Keywords: cluster; regional development; institutional voids; blind spots; competitive disadvantage; organisational change; changing institutional environments. (search for similar items in EconPapers)
Date: 2019
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