R&D Productivity and the Organization of Cluster Policy: An Empirical Evaluation of the Industrial Cluster Project in Japan

Junichi Nishimura and Hiroyuki Okamuro

No 10-06, DRUID Working Papers from DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies

Abstract: Industrial clusters have attracted increasing attention as important locations of innovation. Therefore, several countries have started promotion policies for industrial clusters. However, there are few empirical studies on cluster policies. This paper examines the effects of the “Industrial Cluster Project” (ICP) in Japan on the R&D productivity of participants, using a unique dataset of 229 small firms, and discusses the conditions necessary for the effective organization of cluster policies. Different from former policy approaches, the ICP aims at building collaborative networks between universities and industries and supports the autonomous development of existing regional industries without direct intervention in the clustering process. Thus far, the ICP is similar to indirect support systems adopted by successful European clusters. Our estimation results suggest that participation in the cluster project alone does not affect R&D productivity. Moreover, research collaboration with a partner in the same cluster region decreases R&D productivity both in terms of the quantity and quality of patents. Therefore, in order to improve the R&D efficiency of local firms, it is also important to construct wide-range collaborative networks within and beyond the clusters, although most clusters focus on the network at a narrowly defined local level. However, cluster participants apply for more patents than others without reducing patent quality when they collaborate with national universities in the same cluster region.

Keywords: Industrial cluster; University-industry partnership; Small and medium enterprise; R&D; Patent (search for similar items in EconPapers)
JEL-codes: O23 O32 O38 R38 (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-cse, nep-eff, nep-geo, nep-ino, nep-ipr, nep-pr~, nep-ppm, nep-sbm and nep-ure
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Citations: View citations in EconPapers (11)

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Related works:
Journal Article: R&D productivity and the organization of cluster policy: an empirical evaluation of the Industrial Cluster Project in Japan (2011)
Working Paper: R&D productivity and the organization of cluster policy: An empirical evaluation of the Industrial Cluster Project in Japan (2009)
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