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Coordination Failures, Cluster Theory and Entrepreneurship: A Critical View

Bogdan Glavan

MPRA Paper from University Library of Munich, Germany

Abstract: Development policy has been energized in the last decades by a number of contributions emphasizing a new positive role the state can and should play in fostering economic growth. The central pillar of this literature is Michael Porter and his theory of clusters. This paper intends to provide a refutation of the idea that coordination failures as manifested in the inability of clusters to emerge can serve as a ground for government intervention. It uses mainly Porter, Rodrik and Rodriguez-Clare thesis as an example of this approach and criticizes the claim that coordination externalities prevent the market process to allocate resources optimally

Keywords: coordination failure; cluster theory; development economics (search for similar items in EconPapers)
JEL-codes: L10 L50 O10 (search for similar items in EconPapers)
Date: 2007-05
New Economics Papers: this item is included in nep-hpe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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