A comparison of the dynamics of industrial clustering in computing and biotechnology

Abstract

This paper compares the dynamics of the process by which industrial clusters emerged in the US computing and biotechnology industries. It examines whether new companies are attracted by industry strength in particular sectors or by the strength of the science base at particular locations in biotechnology. It also compares the growth of incumbent firms in the two industries and asks whether growth is boosted by being within a cluster. The paper finds that within computing there are some important cross-sectoral effects on entry, while in biotechnology these cross-sectoral effects are more limited. In biotechnology, the science base plays an important role in promoting entry. The growth of incumbent firms in both industries is promoted by strength in the company's own sector, and cross-sectoral effects and the role of the science base are negligible.