Geoscience Reference
In-Depth Information
12
Cluster Life-Cycles, Entrepreneurship
and Regional Economic Development
with a Case Study of the Korean
Shipbuilding Cluster
Roger R. Stough
Abstract
This paper views industrial clusters as complex systems composed of multiple
interdependent dimensions, firms and enterprises, organizations. A literature
review is used to construct a life-cycle framework for assessing cluster dynamics
and guiding related policy development. The framework is erected on seven
dimensions along with measures and development related patterns associated
with the different life-cycle stages. Examples of policy guidelines are provided
across all seven dimensions and by stage of cluster development. Finally, a case
study of the South Korea shipbuilding cluster is provided in an effort to illustrate
how the framework can be used to analyze cluster dynamics and to guide related
policy responses. Conclusions and future research opportunities are presented in
the final part of the paper.
12.1
Introduction
The purpose of this paper is to develop and apply a framework for assessing cluster
dynamics and providing policy guidelines. The cluster concept is well known and
often the basis for contemporary policy and practice in economic development
following the work of Michael Porter (
1990
). Clusters are organized around one or
more industries and attract investment and related companies and organizations
because they enable benefit capture from Marshallian positive externalities such as
reduced procurement costs, strong knowledge spillovers, and lower transaction
costs. These and other advantages such as improved market knowledge and infor-
mation are amplified as strong internal and later external networks evolve (Porter
1998
and Rocha
2004
). Further, empirical studies by Rocha and Sternberg (
2005
)
and Delgado et al. (
2010
) provide convincing evidence that clusters also motivate
