Entrepreneurship and Regional Development: The Role of Clusters PDF
Preview Entrepreneurship and Regional Development: The Role of Clusters
Entrepreneurship and Regional Development Entrepreneurship and Regional Development The Role of Clusters Héctor O. Rocha IAEBusinessSchool,Argentina ©HéctorO.Rocha2013 Foreword©DavidB.Audretsch2013 Softcover reprint of the hardcover 1st edition 2013 Allrightsreserved.Noreproduction,copyortransmissionofthis publicationmaybemadewithoutwrittenpermission. Noportionofthispublicationmaybereproduced,copiedortransmitted savewithwrittenpermissionorinaccordancewiththeprovisionsofthe Copyright,DesignsandPatentsAct1988,orunderthetermsofanylicence permittinglimitedcopyingissuedbytheCopyrightLicensingAgency, SaffronHouse,6–10KirbyStreet,LondonEC1N8TS. Anypersonwhodoesanyunauthorizedactinrelationtothispublication maybeliabletocriminalprosecutionandcivilclaimsfordamages. Theauthorhasassertedhisrighttobeidentifiedastheauthorofthiswork inaccordancewiththeCopyright,DesignsandPatentsAct1988. Firstpublished2013by PALGRAVEMACMILLAN PalgraveMacmillanintheUKisanimprintofMacmillanPublishersLimited, registeredinEngland,companynumber785998,ofHoundmills,Basingstoke, HampshireRG216XS. PalgraveMacmillanintheUSisadivisionofStMartin’sPressLLC, 175FifthAvenue,NewYork,NY10010. PalgraveMacmillanistheglobalacademicimprintoftheabovecompanies andhascompaniesandrepresentativesthroughouttheworld. Palgrave®andMacmillan®areregisteredtrademarksintheUnitedStates, theUnitedKingdom,Europeandothercountries. ISBN 978-1-349-45232-3 ISBN 978-1-137-29826-3 (eBook) DOI 10.1057/9781137298263 Thisbookisprintedonpapersuitableforrecyclingandmadefromfully managedandsustainedforestsources.Logging,pulpingandmanufacturing processesareexpectedtoconformtotheenvironmentalregulationsofthe countryoforigin. AcataloguerecordforthisbookisavailablefromtheBritishLibrary. AcatalogrecordforthisbookisavailablefromtheLibraryofCongress. To Ines, my wife, and Esteban, Efrain, Ignacio, Jose, Tobias, Miguel, Lourdes, Sofía, and Pilar, our children For who they are and what they mean to me: an example of how love and sacrifice join forces to help one understand what is important To the memory of Sumantra Ghoshal For what he will always mean to me: an example of passion for solving real puzzles and unlocking human potential to understand and change reality for the better Contents ListofTablesandFigures viii ForewordbyDavidB.Audretsch xi Preface xiii Acknowledgements xv AbouttheAuthor xvii ListofAbbreviations xviii 1 Introduction 1 2 ReviewingandDiscoveringtheConcepts 42 3 ElaboratingaSocioeconomicTheoryoftheImpactofClusters onEntrepreneurshipandEntrepreneurshipRegionalOutcomes 155 4 PreparingtheTerrainforEmpiricalTesting 184 5 GettingResults 216 6 MakinganAcademicandPolicyContribution 231 Appendices 272 Notes 297 Bibliography 307 Index 333 vii Tables and Figures Tables 1.1 Typesofreductionism 14 1.2 Conceptualdefinitions 21 1.3 Inanutshell 29 2.1 Alternativedefinitionsofdevelopment 44 2.2 Theoreticalapproachestodevelopment 48 2.3 Differentlogicsunderlyingdifferentconceptionsofthe region 70 2.4 Differentregionalapproachestogrowthanddevelopment accordingtodifferentconceptionsoftheregion 72 2.5 Entrepreneurship–conceptualization,theoretical approaches,andmeasurement 77 2.6 Clusters–evolutionoftheconcept 95 2.7 Typologiesofclustersaccordingtodifferentvariables 109 2.8 Measuringclusters:alternativemethods 119 2.9 Matchingconceptualandoperationaldefinitionsofclusters 123 2.10 Clustersanddevelopment–empiricalstudies 128 2.11 Localizationvs.urbanizationandcompetitionvs.monopoly debates 135 2.12 Socioeconomicandmainstreameconomicperspectives 149 2.13 Classificationoftheoreticalapproachestodevelopment, entrepreneurship,andclusters 150 2.14 Theoriesandspecificapplications 150 3.1 Factorslinkingtheindustrialagglomeration/clusterlevelto theregionallevel 160 4.1 SICcodesformulti-industryclusters 193 4.2 Responseratesbyfederalstate 195 4.3 Matchingconceptualwithmetricoperationaldefinitionof clustersandindustrialagglomerations 203 4.4 Clusters–conceptualandoperationaldefinition 204 4.5 Validityandreliabilitycriteria,andstrategiestomeasureand identifyclusters 214 5.1a Samplestatistics 217 5.1b Correlations 219 viii ListofTablesandFigures ix 5.2 Hypothesestestingofentrepreneurshipforindustrial agglomerations,clusters,andclusterswithexternal networks 221 5.3 OLS-fixedeffects:theimpactofindustrialagglomerations andclustersonentrepreneurship 223 5.4 OLSfixedeffects:theimpactofindustrialagglomerations andclustersonrelationshipbetweenentrepreneurshipand regionaldevelopment 228 5.5 Summaryofresults 230 6.1 Makingacontribution–aroadmap 233 6.2 Researchgap,theoreticalcontribution,andpractical relevance 249 6.3 Fourparadigmsunderlyingpotentialpolicyprescriptionson clustersandentrepreneurship 255 AppendixA:SampleofGermanclustersaccordingtotheliterature 272 AppendixC:Operationaldefinitionsattheplanningregionlevel 280 AppendixE:Planningregionswithatleastthreeclustersandan averagenumberofcitationsforacluster 285 AppendixG:Statisticaltechniques,assumptions,andhowthey havebeenmet 291 Figures 1.1 Researchprogrammeandfocus 10 1.2 Germanfederalstates,Germanplanningregions(unitsof analysis),andclusters(unitsofobservation) 13 1.3 Entrepreneurship,regionaldevelopment,andclusters 20 2.1 Relationshipbetweengeneralandregionalapproachesto growthanddevelopment 73 2.2 Entrepreneurship–conceptualization 84 2.3 Necessaryandcontingentdimensionsofclusters 111 2.4 Clustersandrelatedphenomena 115 2.5 Clusterdimensions–matchingconceptualandoperational definitions 125 2.6 Localizationandurbanizationeconomies 134 2.7 Entrepreneurship,regionaldevelopment,andclusters–two alternativeperspectives 147 3.1 Concepts,model,andhypotheses 157 3.2 Cluster-entrepreneurshipmodel 162 3.3 Cluster-entrepreneurship–regionaldevelopmentmodel 173 3.4 Researchquestions,model,andhypotheses–summary 181 4.1 Clusters–operationaldefinition:sourcesofdata,criteria, andsteps 191 x ListofTablesandFigures 4.2 Totalentrepreneurialactivity(TEA)inGermanplanning regions(2000–2003) 197 4.3 Federalstates,planningregions,industrialagglomerations, andclusters 208 AppendixB:Coveringletter,instructions,andquestionnairesent toregionalexpertsinone-thirdoftheplanningregions 276 AppendixD:Operationaldefinitionofentrepreneurship 283 Foreword One of themost compellinginsights of theglobal economic crisis thathas prevailedforsomefiveyearsisthateconomicprosperityandahighstandard oflivingcannotbegeneratedandsustainedthroughmacroeconomicpolicy alone. Rather, the greater variance in economic performance across cities, communities,andregionswithinanygivencountrysuggeststhatthelocal conditions,institutions,andorientationmay,infact,bedecisiveinshaping theeconomicperformanceofaplace. But which conditions, institutions, and orientation matter, and how can they be influenced by policy to best enhance economic performance? This importantbookweavestogethertwodisparatesourcesofliterature–onthe onehandtheclusterliteratureandontheotherhandtheentrepreneurship literature–toprovidecompellinginsightsintohowandwhylocaleconomic activity can best be structured and organized to generate strong economic performance. Thoughtleadersandpolicy-makersconcernedwiththeeconomicperfor- mance of a place have long been familiar with the concept and practice of creatingandmanagingclustersoffirms.MichaelPorterintroducedandpop- ularizedtheconceptthatthestructureofeconomicactivityinaplace,such asaregionorcity,caninfluencetheeconomicperformanceofthatplaceif firmsareorganizedintoclustersofcomplementaryeconomicactivity.Arich andconvincingliteraturesubsequentlyconfirmedtheimportanceofclusters to economic performance. Policy-makers around the globe have made the creationandgrowthofclusterstheirmainfocustofostereconomicgrowth, employment,andcompetitivenessinglobalmarkets. A very different literature has focused on a very different aspect of the structure and organization of economic activity in a place – entrepreneurship. This literature has generated compelling empirical evi- dencethatthosecitiesandregionsexhibitingmoreentrepreneurialactivity alsogeneratehigherlevelsofeconomicperformance. Thisbookisimportantbecauseitbringsthesetwostructuralandorgani- zationaldimensionstogether–clustersandentrepreneurship–andprovides compellingevidencethattheirimpactsaredeeplyinterdependent.Theeffi- cacy of clusters in terms of enhancing economic performance is shaped by theextenttowhichthoseclustersinvolveandarebasedonentrepreneurial activity.Similarly,theimpactofentrepreneurshiponeconomicperformance is clearly enhanced when it takes place within the context of clusters of complementaryeconomicactivity. xi
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