The rise and fall of industrial clusters: experience from the resilient transformation in South Korea

DaHyun Kim (), Saehoon Kim () and Jae Seung Lee ()
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DaHyun Kim: Seoul National University
Saehoon Kim: Seoul National University
Jae Seung Lee: Seoul National University

The Annals of Regional Science, 2023, vol. 71, issue 2, No 5, 413 pages

Abstract: Abstract Clusters facing a crisis could have devastating effects on the economic conditions of the regions. Therefore, it is important to study how resilience works in the lives of clusters. The purpose of the current study is to more quantitatively understand the life path of the growth and decline of industrial clusters by verifying actual patterns. Also, it is to explain why these patterns were formed by qualitatively analyzing the process of utilizing resilience. The main contribution to the field of the lifecycle of clusters would be proving the theoretical concepts with data of the entire official industrial clusters in South Korea for 2 decades. Although previous works have attempted to define life paths by classifying the groups, most of their cases only dealt with one or two cases, making it difficult to generalize to a theory that can explain all types of clusters. This research used South Korean data as representative data for classification by analyzing the 1375 industrial clusters for 20 years. The trend of their life paths was calculated using a classic time-series decomposition method, and dynamic time series warping was adopted to measure the similarity between the paths. The k-medoids method from an unsupervised machine learning technique was adopted to classify the data. They were classified into three types: Malmo-type, Silicon Valley-type, and Detroit-type. The same classification method can be applied to other countries. Through this classification, the necessary or weak determinants of resilience in their clusters can be found. By making up for these shortcomings, continuous growth can be achieved.

JEL-codes: E32 O10 R10 R11 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s00168-022-01170-6

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