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and support increased new firm formation. More general discussions of the rela-
tionship between clusters and entrepreneurship appear in Stough et al. (
2014
).
12.2
Cluster Dimensions
Despite evidence that clusters contribute to strong regional economic growth and
development as above, Martin and Sunley (
2011
) recently observe that it is the
increasing returns part of clustering that has tended to be recognized by earlier
cluster investigators. Consequently, serious attention to all parts of the full pattern
of cluster development are lacking if not missing. To the extent that cluster
dynamics have been considered it is mostly with respect to life-cycle theory
(Bergman
2008
; Bode and Alig
2011
; Martin and Sunley
2011
; Lefebvre
2012
;
and Tichy
1998
) and largely in the recent past.
1
In this paper the dynamics of
clusters are viewed from the perspective of merging the life-cycle approach with
concepts from the fields of social complexity and general systems theory.
Dynamic industry clusters are defined in this paper as complex systems com-
posed of multiple interdependent dimensions and multiple firms and enterprises.
Thus clusters are understood as integrated ensembles of interdependent dimensions
whose values or weights of relevance change over time. The dimensional element
of this conception was first envisioned in a study of the shipbuilding cluster in
Northern Ireland (Klink and De Langen
2001
). The dimensions used in the present
study are derived in part from the Klink and De Langen (
2001
) study but also have
been merged with others that have appeared repeatedly in the cluster literature
(Baptista and Mendonca
2010
; Bergman
2008
; Brocker and Soltwedel
2010
;
Karlsson
2008
; Martin and Sunley
2011
; Menzel and Fornahl
2009
; Stough
et al.
2014
) to create a seven dimension manifold for analyzing cluster dynamics.
These dimensions are important because life-cycle theory implies that certain
states or stages are reached as a system (cluster) evolves through the life cycle.
2
At each stage these dimensions are envisioned to have specific values or
qualities thus providing the basis for estimating how well a cluster follows the
theoretical development path. The dimensional profiles also provide targets or
guides for policy intervention. Based on a review of the cluster literature the
dimensions are:
1. Spatial concentration—greater in early and more dispersed in later stages
2. Industrial cluster strength—scale and scope increase; decrease in later stages
1
However, some alternative views consider cluster dynamics from an adaptive cycle and nested
systems theory (Martin and Sunley
2011
) perspective and the dynamics of cross cluster interaction
(Engel and Palacio
2009
).
2
This statement is not to imply that clusters evolve in a linear progression to some end state.
Rather clusters seem to evolve in a highly noisy event that often shows trial and err “learning” that
may truncate at any point. For example, there are many mining clusters that have had initial take
offs in economic growth only to play out and revert to pre-cluster status as global prices decline or
the ore lode plays out prematurely.