Economic Impact of Clusters

Abstract

The chapter provides answers to the research questions on whether innovation and financial performance in clustered companies differ from companies that are not part of any cluster. Specifically, it was examined whether the performance of companies in and outside institutionalised cluster organisations varies. The answers to these questions are ambiguous. Improvement in innovation performance was proved in the automotive, furniture, and packaging industries. The change in performance was assessed using the Malmquist index and its components. The impact on innovation in the industry was measured using the technological change component. The impact of various organisational measures on performance was quantified through technical efficiency change under both CRS and VRS. The possible link between innovation and financial performance and the effect of time lag on performance were also examined. There was no evidence of dependence between innovation and financial performance. This is probably related to the way in which innovation performance is measured through registered industrial property rights. Examination of time lag suggests a possible impact of the cluster on long-term performance in the engineering industry. A positive impact on scale efficiency was identified in the engineering and textile cluster.