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The structure and evolution of industrial clusters:
Transactions, technology and knowledge spillovers
1. Introduction
Over recent years, the interrelationships between technology, innovation and industrial location behaviour have come to be seen as essential features of regional development. Much research and policy-thinking has been devoted to understanding the factors explaining why particular types of technologies appear to blossom in particular localities, and how this affects local economic growth. Lessons are often drawn from observations of particularly successful ‘innovative’ regions as a means of re-modelling both industrial and regional policy.
It will be argued in this paper that insuf?cient consideration is still devoted to both the nature of innovation processes and the structural conditions under which technical change occurs across space. In order to explain the observed variety of geographical models, it is necessary to take into account the nature of new knowledge in different production sectors. In particular, technological regimes, industrial structures and organisational practices, as well as their dynamics, are often overlooked in favour of simpli?ed and stylised constructs, which appeal to consultants or government policy-makers wishing for easy answers to complex problems. An example of this is the literature promoting industrial clusters.
This paper attempts to classify industrial clusters on the basis of the existing literature, trying in particular to integrate transactions costs views and innovation and technology perspectives to give account of both the diversity of cluster structures and the multiplicity of their evolution paths. In doing so, the following questions are here indirectly addressed. How can we explain the variety and distinctiveness of geographically bounded industrial clusters?Why particular types of technologies tend to thrive in particular localities? How do different types of clusters evolve over time?
The paper is stru
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