Construction of Regional Advantage: Top-Down or Bottom-up DIMETIC Ph. D course 10 October 2007 (3), Maastricht Bent Dalum DRUID/IKE , Dep. of Business Studies, CTIF Aalborg University DIMETIC, Maastricht 10/10 -07_BD 1
Basic approaches • Comparative advantage Ricardo, Heckscher-Ohlin, etc. • Competitive advantage Krugman, etc. Porter • Constructed advantage Best (2001) Cook & Leydesdorff (2006) Etzkowitz’s (2002) history of MIT etc. DIMETIC, Maastricht 10/10 -07_BD 2
Feldman and Martin (1): Constructing jurisdictional advantage • Region – cluster – jurisdiction. • Cluster: ”…spatially defined epistemic communities of common interest” (p. 1237). • Jurisdiction focused at the ’city-region’, ”…because the literature on clustering and agglomeration increasingly points to the importance of small and compact geographic units” (p. 1239). DIMETIC, Maastricht 10/10 -07_BD 3
Feldman and Martin (2): Two outer poles 1. Aggressive central planning 2. Straight-forward laissez faire DIMETIC, Maastricht 10/10 -07_BD 4
Feldman and Martin (3): On Silicon Valley • Even The Valley (“…the paragon of a jurisdiction driven by free market forces…”) would never have reached its present level without massive investments by governments in higher education and research focused at various segments of the electronics industry. DIMETIC, Maastricht 10/10 -07_BD 5
Feldman and Martin (4): The role of policies • ”Previous work on clusters has emphasized the random nature of geographical location” (p. 1247). Krugman (1991) in more general; Klepper on e. g. Detroit. • ”In contrast we argue that clusters may be constructed (emphasis_BD), but not in the way that policy typically proceeds by targeting an industry that is poised to take off in another location. Instead we argue that policy may be fruitfully employed by building upon unique place-specific assets” (p. 1247). DIMETIC, Maastricht 10/10 -07_BD 6
Gertler and Wolfe (2006) in the ‘Cluster Genesis book’ ed. by Feldman and Braunerhjelm • “…once a regional cluster establishes itself as an early success…its chances for continued growth tend to be high” • And vice versa if a cluster has embarked on a downward trend DIMETIC, Maastricht 10/10 -07_BD 7
Future strategies for North Jutland • How to learn to cope with schizophrenia – At the one hand several industries are threatened by globalization, not least in North Jutland – On the other hand, several opportunities have emerged in the high tech fields – These opportunities did not pop-up as mere results of market forces, and they are not results of very specific policies neither. – But some bold efforts in the region have paid off: establishment of a university, CPK and CTIF, a science park, the thrust towards creating a university hospitallike institutional framework, …. DIMETIC, Maastricht 10/10 -07_BD 8
Carlsson (2006) in the ‘Cluster Genesis book’ ed. by Feldman and Braunerhjelm • Public policy has played an important role in all but two cases treated in the book - Hollywood - Detroit • Government funded research of core importance - Defense: Silicon Valley - Health: Capitol Region (Washington) • Policy intentional, but not sector specific -Ireland, Research Triangle Park (North Carolina) • Policy intentional and sector specific -Israel, China DIMETIC, Maastricht 10/10 -07_BD 9
The Eisebith’s (1): Cluster definition “…A regional agglomeration of sector value chain related firms and other organizations (like universities, R&D centres, public agencies) which derive economic advantage from co-location and collaboration…” (p. 1251). DIMETIC, Maastricht 10/10 -07_BD 10
The Eisebith’s (2): Cluster promotion ”…any coordinated set of measures, …, that supports the development of regional industrial agglomeration towards ideal features in terms of specialized, competitive, collaborative and collectively innovative set of sector related industries, research/education and other organizations” (p. 1252). DIMETIC, Maastricht 10/10 -07_BD 11
The Eisebith’s (3): Classification of initiatives 1. Explicit top-down – ET. Typically targeted public intervention. Case: ACStyria = Automotive Cluster of Styria in Austria. 2. Implicit bottom-up – IB. Typically private and market led. Case: Car e. V. = Car e. V. Aachen/Euregio Maas Rhein. DIMETIC, Maastricht 10/10 -07_BD 12
The Eisebith’s (4): Implications of cluster promotion in four areas 1. Institutional genesis and composition of the actor group. 2. Structure of finance and decision making. 3. Preferred target areas and support. Measures. 4. Effects on innovativeness and competitiveness. DIMETIC, Maastricht 10/10 -07_BD 13
The Eisebith’s (5): Four dimensions of cluster promotion 1. 2. 3. 4. The issue of scale. Regional preconditions. Cluster life-cycle phases. Sector specificity. DIMETIC, Maastricht 10/10 -07_BD 14
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