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Industrial dynamics and economic geography: a survey

Koen Frenken (), Elena Cefis and Erik Stam ()

No 11-07, Working Papers from Eindhoven Center for Innovation Studies

Abstract: We review the literature on clusters and their effects on industrial dynamics as well on various lifecycle dynamics underlying the process of cluster formation and cluster dynamics. The review shows that there is little evidence that clusters enhance firm growth and survival. In the absence of localization economies, the emergence of clusters is best understood as an evolutionary process of capability transmission between parents firms and their spinoffs. We discuss various future research avenues and call for theorising based on firm heterogeneity as well as empirical research based on common methodological standards.

Keywords: entry; exit; cluster; localization economies; lifecycle; firm heterogeneity (search for similar items in EconPapers)
JEL-codes: L10 L20 R10 (search for similar items in EconPapers)
Date: 2011-10, Revised 2011-10
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Persistent link: https://EconPapers.repec.org/RePEc:ein:tuecis:1107

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