The relationship between multinational fi rms and innovative clusters - Evolutionary Economic Geography - page 191

Table 8 . 2 Industrial clusters: knowledge, technology and cluster dynamics

Characteristics Pure

agglomeration

Industrial
complex

Social network (SN)
New SN Old SN

Nature of
technical
knowledge

Codii ed, explicit
and mobile
Transmitted
by way of
information

Mixed, systemic,
routinised,
R&D- intensive
Specii c, based
on non-
transferable
experience

Tacit, new,
generic, non-
systemic,
sticky and leaky
Transmitted
within cognitive
networks

Mixed, mature,
incremental
Transmitted
within
localised
networks

Technological
trajectory

Oriented to
processes,
problem-
solving

Oriented to
complex
products, cost-
cutting

Oriented to
radically new
products

Oriented to
processes,
customer-
driven

Dynamics Stochastic Strategic Mixed Mixed

Sources of
innovation

External to the
i rm

Internal to the
i rm

Mixed External to the

i rm

Appropriability
of innovation
returns

Low, perfect or
monopolistic
competition

High, private
creation of new
knowledge,
oligopolistic
competition

Mixed,
public-private
creation of new
knowledge

Low,
collaboration
and
competition

Technological
opportunities

Variable Low Very high,

uncertain

Low

Degree of
cumulativeness

Low High Low High

Knowledge- base Diversii ed Specialised Research-based Specialised

along the
i lière

Modes of
governance

Market Hierarchies Relational and

cognitive
networks

Social and
historical
networks

Examples
of industrial
specialisation

Finance,
banking,
insurance,
business
services,
retailing

Steel, chemicals,
automotive,
pharmaceuticals,
machine
tools, medical
instruments,
ICT hardware

SME high-tech
clusters in
general purpose
technologies

Customised
traditional
goods textiles,
footwear,
furniture,
tourism

Example of
cluster

'Silicon Valley'
(California)

'Silicon Glen'
(Scottish
Electronics
Industry)

'Silicon Fen'
(Cambridge,
UK)

Italian industrial
districts
(Emilia-
Romagna)

Pavitt
classii cation

Information-
intensive,
supplier
dominated
i rms

Production-
intensive i rms
(scale- intensive
and specialised
suppliers)

Science- based
i rms

Supplier-
dominated
i rms