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Are firms in clusters really more innovative?

Catherine Beaudry and Stefano Breschi

Article (2003)

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This paper examines empirically whether firms located in strong industrial clusters are more innovative than firms located outside these regions. The study performs a firmlevel analysis for two countries: Italy and the United Kingdom. European patent data for the period 1990-98 are used as indicator of firms' innovative activity, and are related to employment in the region where the firms are located, and other cluster-specific and firm-specific variables. The main result of the paper is that clustering alone is not conducive to higher innovative performance. Whereas location in a cluster densely populated by other innovative firms positively affects the likelihood of innovating, quite strong disadvantages seems to arise from the presence of non-innovative firms in a firm's own industrial sector. Regarding the impact of other industrial sectors, preliminary results seem to indicate, in the case of Italy, that a strong presence of firms in other related industries spurs innovative performance.

Uncontrolled Keywords

Clusters, Innovation, Knowledge, Agglomeration economies

Subjects: 1600 Industrial engineering > 1600 Industrial engineering
Department: Department of Mathematics and Industrial Engineering
Funders: European Community
Grant number: SOE1–CT97–1058 (DG12–SOLS)
PolyPublie URL: https://publications.polymtl.ca/2250/
Journal Title: Economics of Innovation and New Technology (vol. 12, no. 4)
Publisher: Taylor & Francis
DOI: 10.1080/10438590290020197
Official URL: https://doi.org/10.1080/10438590290020197
Date Deposited: 28 Sep 2016 14:44
Last Modified: 05 Apr 2024 22:06
Cite in APA 7: Beaudry, C., & Breschi, S. (2003). Are firms in clusters really more innovative? Economics of Innovation and New Technology, 12(4), 325-342. https://doi.org/10.1080/10438590290020197


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