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Cluster GenesisTechnology-Based Industrial Development$
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Pontus Braunerhjelm and Maryann P. Feldman

Print publication date: 2006

Print ISBN-13: 9780199207183

Published to Oxford Scholarship Online: September 2007

DOI: 10.1093/acprof:oso/9780199207183.001.0001

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Mors tua, vita mea? The Rise and Fall of Innovative Industrial Clusters

Mors tua, vita mea? The Rise and Fall of Innovative Industrial Clusters

Chapter:
(p.219) 11 Mors tua, vita mea? The Rise and Fall of Innovative Industrial Clusters
Source:
Cluster Genesis
Author(s):

Mario A. Maggioni

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199207183.003.0011

This chapter contains a theoretical analysis of the rise and fall of clusters. It is shown how a major technological innovation sets a process of creative destruction into motion, where new clusters appear and replace clusters based on obsolete technologies. In the last stage when the cluster matures, it either achieves a national or international leadership in a given sector or technology. The decisive element appears to be a different institutional framework. Using simulation techniques, it is shown how policies that support firm-based micro-level incentives seem to be critical rather than policies aimed at strengthening the ‘carrying capacities’. Most European policy makers overemphasize the latter type of policies as a means to initiate cluster emergence and growth.

Keywords:   theoretical model, technology, innovations, institutional framework, incentive, carrying capacity

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