Geoscience Reference
In-Depth Information
12.4.3 Dimensional Patterns in the Exploratory Expansion Stage
(See Table
12.3
)
The exploratory expansion Stage emerges shortly after successful take-off and
extends until the middle part of the steep growth segment of the S-shaped life-
cycle (Fig.
12.1
) model is reached. From the middle of this segment growth
continues to accelerate but at a decreasing rate. The upper boundary of the explor-
atory expansion phase is the lower boundary of the exploitive expansion phase (see
Fig.
12.1
). This phase is usually the most dramatic part of the life-cycle (along with
perhaps rejuvenation) as it is where trial and error business approaches are tried and
are at a maximum and thus start-ups and the churn of start-ups and failures is most
pronounced. The churn of ideas and knowledge during this period is why this stage
is called exploratory as it is a time of testing to discover the best trajectory for the
cluster.
The cluster becomes defined around one or more core industries as this stage
unfolds and the cluster boundary with some creative approaches can be specified
using GIS techniques however this is made more complicated when one is
attempting to map flows of purchases or goods among core firms and members of
the supply chain. Throughout this phase more and more companies are formed or
attracted to the cluster so that density is increasing and proximal relations become
more pronounced. The strength of the cluster also increases dramatically with
considerable growth in employment, income and wealth creation. Core industry
location quotients often increase to concentration levels three or more times the
provincial or national average.
Considerable new knowledge and information is being created both in the
industry and supporting firms or supply chain members. This industry churn spills
over into other organizations leading to more patenting not only among the
companies but also via growing involvement of research institutions which find a
growing market for research. This interrelated activity produces considerable
entrepreneurial activity so start-ups and spinoffs are increasing and focused on
the productive variety while emphasis on non-productive business formation
becomes secondary.
The notion of convergence around a strategy tends to be conceptual during the
early and middle parts of the exploratory expansion stage. However, in the latter
part a formal strategy may emerge due to an increasing focus of business
associations on the further growth of the core industry and its supporting
businesses. Also, new facilitating and supporting organizations may arise such as
technology councils and venture capital or lobbying associations. In this part of the
exploratory stage the focus is mostly on growing the cluster by internal processes
and by company attraction including foreign firms that would bring inbound foreign
direct investment (FDI). This creates a highly positive environment for new knowl-
edge and information, and heterogeneity of knowledge and information is growing
and spilling over into the local regional community.
Networking during this stage is evolving rapidly with the expansion of business
associations that are promoting cluster development and thus bringing cluster
