Thriving innovation amidst manufacturing decline: the Detroit auto cluster and the resilience of local knowledge production

Thomas J. Hannigan, Marcelo Cano-Kollmann and Ram Mudambi

Industrial and Corporate Change, 2015, vol. 24, issue 3, 613-634

Abstract: Analyzing the comprehensive 35-year patent data set associated with the Detroit auto cluster we confirm that innovation in clusters can increase in spite of a long-term decline in manufacturing activity. The "stickiness" of local knowledge is sustained by: (i) increasing technological specialization at the local level and (ii) growing connectedness to global centers of excellence. The very forces that bring about the decline in manufacturing in a cluster sustain their position as a global center of innovative excellence.

Date: 2015
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