Cluster Relations in the Media Industry: Exploring the 'Distanced Neighbour' Paradox in Leipzig

Abstract

Bathelt H. (2005) Cluster relations in the media industry: exploring the 'distanced neighbour' paradox in Leipzig, Regional Studies39, 105-127. This paper uses a multidimensional cluster concept that views processes of knowledge creation as being decisive in explaining how clusters are established, why they grow and how they reproduce themselves. It is suggested that clusters can only create new knowledge and continue to grow if the cluster firms have linkages with external markets and employ a mix of local and non-local transactions. Local interaction or 'buzz' and interaction through global or trans-local 'pipelines' create a dynamic process of knowledge creation which is the key to understanding a cluster's growth process. It is argued that the lack of a reflexive mechanism of local and trans-local interaction is the reason as to why the Leipzig media industry cluster has stagnated in recent years after a decade of substantial growth. In this cluster, we are confronted with what is referred to as the '...