Co-evolution of firms, industries and networks in space

Abstract

The cluster literature suffers from a number of shortcomings: (1) cluster studies tend to relate the performance of cluster firms to their cluster location, without controlling for firm-specific capabilities; (2) cluster studies tend to overemphasize the importance of place and underestimate the role of networks; (3) cluster studies do not address the evolution of clusters. Our aim is to overcome these shortcomings and propose an exploratory theoretical framework that describes how clusters co-evolve with: (1) the industry they adhere to; (2) the (dynamic) capabilities of the firms they contain; and (3) the industry-wide knowledge network they are part of.