A typology of declining clusters in thin regions: socioeconomic challenges and policy responses

Mads Bruun Ingstrup, Arnault Morisson and Heike Mayer

Chapter 2 in Beyond Innovation Hotspots, 2024, pp 17-33 from Edward Elgar Publishing

Abstract: This chapter investigates cluster decline in thin regions by considering broader socioeconomic challenges beyond institutional and firm-specific aspects. While clusters in thick regions benefit from a critical mass of actors and knowledge, facilitating new path developments, clusters in thin regions face lock-in situations and limited opportunities for diversification. Drawing on established theoretical frameworks encompassing cluster types, sources of cluster decline, and thin region characteristics, a comprehensive typology is created that categorises the susceptibility of clusters to decline across three types of thin regions. Supported by illustrative cases, this chapter offers specific policy recommendations tailored to thin regional contexts, aiming to inform strategic interventions that foster new cluster dynamics.

Keywords: Economics and Finance; Geography; Innovations and Technology; Urban and Regional Studies (search for similar items in EconPapers)
Date: 2024
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