Promoting Industrial Clusters: Evidence from Ireland

Anne Marie Gleeson, Frances Ruane () and Julie Sutherland

Chapter 7 in Multinationals, Clusters and Innovation, 2006, pp 107-119 from Palgrave Macmillan

Abstract: Abstract New economic geography focuses on the importance of the location of industries within economies and emphasizes the role of centripetal and centrifugal forces that affect the spatial concentration and sectoral specialization of industry. The tendency for enterprises conducting innovative economic activity to cluster has been found to be higher in industries where external economies of scale and new economic knowledge play an important role. When this knowledge is tacit, geographical boundaries will exist (Audretsch and Feldman, 1996). Enterprises will locate within close geographic proximity to each other in order to benefit from potential knowledge externalities and to gain access to skilled workers endowed with a high level of industry-specific human capital. The spatial concentration and sectoral specialization of enterprises thus have significance for regional and industrial policy as the establishment of high-technology clusters has the potential to increase economic activity and enhance regional development.

Keywords: Foreign Direct Investment; Sectoral Specialization; Industrial Policy; Spatial Concentration; Industrial Cluster (search for similar items in EconPapers)
Date: 2006
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DOI: 10.1057/9780230624948_7

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