Cluster Performance Reconsidered: Structure, Linkages and Paths in the German Biotechnology Industry, 1996-2003

Abstract

We examine the evolution of biotechnology clusters in germany between 1996 and 2003, paying particular attention to their composition in terms of venture capital, basic science institutions, and biotechnology firms. drawing upon the significance of co-location of "money and ideas", the literature stressing the importance of a cluster's openness and external linkages, and the path dependency debate, we analyze how certain cluster characteristics correspond with each cluster's overall performance. after defining different cluster types, we explore and compare the clusters' internal and external interconnectivity, and investigate the extent to which the clusters' structural composition has changed over time. our results indicate that the structure, i.e., the type of cluster, and the cluster's openness towards receiving external knowledge provide merely unsystematic indications of a cluster's overall success. the cluster's ability to modify its composition to a more balanced ratio of science and capital over time, in contrast, turns out to be a key explanatory factor. Jel-classification: l22, o18, o32.

Catch‐up via agglomeration: A study of township clusters

“…Prior research on cluster performance has advanced the scope of cluster research, but has largely stayed at the conceptual level. Although there is a research stream investigating the role of clusters in regional economic development, relatively little effort (Häussler andZademach, 2007, andHervas-Oliver andAlbors-Garrigos, 2007, are notable exceptions) has been made in the management research to study directly the strategic performance of clusters and related managerial implications.…”

“…Cluster performance has been measured as growth in the number of firms or growth in employment (e.g., Häussler and Zademach () or as measured by return on assets (ROA) and return on equity (ROE) (e.g., Hervas‐Oliver and Albors‐Garrigos, ). These measures have advanced from the measures in prior research, such as using the sum of overall firm performance or regional economic development as a proxy, as they focus on cluster‐level competitiveness as a whole, rather than cluster‐firm or region‐firm cross‐levels.…”

Spatial Diversity of Biotechnology Centres in Germany

“…In 2006, 145 out of 494 dBFs were located in seven regions selected in competitions (BioRegio), while 135 operated in other regions. The increase in the number of biotech companies in the above-mentioned seven regions occurred largely at the initial stage of financing (1998)(1999)(2000)(2001)(2002)(2003), when the regions received the highest financial support (Häussler, Zademach 2007). The biggest chunk of total BioRegio financing (more than 60%) went to private companies, most of them start-ups.…”

The economics of knowledge regulation: an empirical analysis of knowledge flows

“…In the questionnaire, I asked interviewees about the founding of their firm. I use the dummy variable of whether the firm is a spin-out of a university or a research institute as an indication for basicness of R&D (Ha¨ussler and Zademach, 2007). Finally, I include the speed with which a field develops as a measure for knowledge cycle time.…”