Abstract

The paper explores the form and content of economic interaction of firms based on various concepts of agglomeration and social networks. It uses a case study of the machinery sector in the region of Styria as empirical background. Starting with types of clustering – the model of pure agglomeration, the industrial-complex model and the social-network model - the paper argues that certain geographical agglomerations allow different types of networks and different patterns of behaviour. Thus different forms of learning, knowledge sharing and knowledge creation. Some “stylized facts” in support of this perspective are derived from an analysis of a regional network. This network comprises individualistic open systems consisting of several areas which overlap. Physical linkages between these networks are weak, but intersections based on cooperative R&D and R&D infrastructure, qualification and informal exchanges are evident. From a regional perspective it can be seen to dominate. Despite evident sectoral concentrations direct links to the prevailing science base appear more significant as binding factors than long term supplier networks. These relationships are interpreted in terms of their need for proximity, their durability and above all their direction of knowledge dependency.

Highlights

  • While we are well aware that it is most likely impossible to provide one single theory of clusters and their networks there is a certain consensus that several elements of specific theories may help us understand their forms and functions.They offer a certain unity of approach in identifying the important elements which are needed for explaining the changing character of the innovation process.Recent debate has begun to focus more on how far, and in which ways, clusters foster knowledge creation and organizational learning

  • The paper explores the form and content of economic interaction of firms based on various concepts of agglomeration and social networks

  • Starting with types of clustering – the model of pure agglomeration, the industrial-complex model and the social-network model - the paper argues that certain geographical agglomerations allow different types of networks and different patterns of behaviour

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Summary

Introduction

While we are well aware that it is most likely impossible to provide one single theory of clusters and their networks there is a certain consensus that several elements of specific theories may help us understand their forms and functions They offer a certain unity of approach in identifying the important elements which are needed for explaining the changing character of the innovation process. Recent debate has begun to focus more on how far, and in which ways, clusters foster knowledge creation and organizational learning It has emphasized the organic-evolutionary dimension of cluster-based industrial agglomerations. ‘learning’, while the interpretation, transfer and use of experiences is influenced by interaction between individuals and between organizations (Cohen and Levinthal 1989, Andersen 1995, Hartmann 2006) These insights have shifted the emphasis from material links to immaterial knowledge flows within clusters.

Geographical agglomeration and local networks
Interaction in the observed network
The empirical database
Indicators of interaction
Structure of the network and network density
Spotting a leading firm in the network
Human resources and the regional labour market
Findings
Final remarks
Full Text
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