Engel, J. S. (Ed.). (2014). Global clusters of innovation: Entrepreneurial engines of economic growth around the world. Cheltenham, England: Edward Elgar. ISBN 978-1-78347-083-9.
Reviewed by: Gordon F. Mulligan, The University of Arizona, USA DOI: 10.1177/0891242415625166
Economic Development Quarterly, 2016, Vol. 30(2) 185–187.
During the 1980s, Michael Porter helped fashion a new paradigm for understanding industrial behavior. After noting that successful firms can differ in scope and conduct, he went on to summarize the winning strategies of national champions around the world (Porter, 1990). As a rule these successful firms nurtured better workers, innovated more aggressively, and developed stronger ties both to government and private capital. Porter also observed that many successful firms were located close to their competitors, suppliers, and related business associations, so he next developed deeper insights into industry clustering (Porter, 1998). In the conversation that followed, a consensus was reached that clustering is a strategy that enhances both the productivity and the innovation of firms, and stimulates the creation of entirely new business types and product lines. These thoughts about the competitive advantages of clustering arrived just as the public interest had turned to contentious issues such as globalization, free trade, and outsourcing. As a result, many governments asked whether business clusters might enhance the success of place-based policies (e.g., industrial targeting) or, even more optimistically, whether designated clusters might assist the state in developing a more dynamic economy.
Reviewed by: Gordon F. Mulligan, The University of Arizona, USA DOI: 10.1177/0891242415625166
Economic Development Quarterly, 2016, Vol. 30(2) 185–187.
During the 1980s, Michael Porter helped fashion a new paradigm for understanding industrial behavior. After noting that successful firms can differ in scope and conduct, he went on to summarize the winning strategies of national champions around the world (Porter, 1990). As a rule these successful firms nurtured better workers, innovated more aggressively, and developed stronger ties both to government and private capital. Porter also observed that many successful firms were located close to their competitors, suppliers, and related business associations, so he next developed deeper insights into industry clustering (Porter, 1998). In the conversation that followed, a consensus was reached that clustering is a strategy that enhances both the productivity and the innovation of firms, and stimulates the creation of entirely new business types and product lines. These thoughts about the competitive advantages of clustering arrived just as the public interest had turned to contentious issues such as globalization, free trade, and outsourcing. As a result, many governments asked whether business clusters might enhance the success of place-based policies (e.g., industrial targeting) or, even more optimistically, whether designated clusters might assist the state in developing a more dynamic economy.