Coordination Failures, Cluster Theory, and Entrepreneurship: A Critical View

Catching Regional Development Dreams: A Study of Cluster Initiatives as Intermediaries

“…The concept of development blocks centres on entrepreneurial activities leading to innovations that create such complementarities as interdependency among the functions of institutions, infrastructures, and production. Porter (1998) introduced the concept of clusters, which influenced such other studies of regional development and economic growth as Clarke et al (2002), Park & Lee (2004), Oakey (2007), Glavan (2008), and Sövell (2009). Porter (2000) defined a cluster as 'geographic concentrations of interconnected companies, specialized suppliers and service providers, firms in related industries, and associated institutions (e.g.…”

Government support for the development of regional food clusters: evidence from Alberta, Canada

“…Although there is a significant debate in the literature, economic efficiency would suggest that it is undesirable that governments pick companies as a means of creating new clusters (Glavan 2008). Porter (2000) and Feser (2002) suggest that it is more desirable that governments reinforce established and emerging clusters, rather than attempt to create new ones.…”

“…• increase innovative activity to help overcome regional productivity gaps ( • evidence suggests that government support aimed at increasing networking and trust has not been effective (Holbrook et al 1999;Hickton 2004) • governments picking companies as a means of creating new clusters is undesirable/ can be associated with efficiency losses (Porter 2000;Feser 2002;Lagnevik et al 2003;Glavan 2008) …”

“…The literature reviewed suggests that government intervention in the form of reinforcing established and emerging clusters can be supported from an economic perspective, whereas the selection of firms as a means of creating new clusters is undesirable, and can be associated with efficiency losses (Porter 2000;Feser 2002;Lagnevik et al 2003;Glavan 2008). The empirical part of this paper has attempted to provide some measures of the effectiveness of government interventions affecting clustering with regard to the achievement of government goals in the regulations implemented and policies affecting clustering, as well as with regard to the appropriateness of regulatory burden on firms in clusters.…”

Knowledge problems associated with creating export zones

“…Thus … they would still not be able to implement successful cluster policies." Glavan (2008) has also argued that promoting industrial clusters is a panacea to market coordination failures. As he (ibid.)…”