Abstract
In last decades, the urge to boost economic performances of regions has shed light on the importance of Clusters and Smart Specialization policies as catalyst of innovation and competitiveness. This chapter thoroughly analyzes the evolution in theories and practices related to both Cluster and Smart Specialization policies, and outlines similarities and differences between the two policy constructs. Ultimately, by drawing on the previous analysis, an innovative reflection on the role of Cluster and Smart specialization in shaping the structure of regional economies.
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Notes
- 1.
The Marshallian definition of Industrial Districts grounds on the concept of localization, nonetheless Marshall affirms that the lasting of such localization is the very determinant of the effective functioning of districts. Consistently the father of the district theory claims that long-lasting localization drives to the generation of a district atmosphere which in turn produces many economic advantages including: (i) “the growth of subsidiary trades”, (ii) “the use of highly specialized machinery”, (iii) “local market for special skills”, (iv) “industrial leadership”, (v) “introduction of novelties”, (vi) “hereditary skills” (Marshall 1890).
- 2.
While the concept of externalities applies to multiple contexts, its general definition is quite unambiguous: Externalities refers to situations when the effect of production or consumption of goods and services imposes costs or benefits on others which are not reflected in the prices charged for the goods and services being provided (Khemani and Shapiro 1993).
- 3.
The concept of economies of agglomeration suggests that the clustering of economic activities occurs because firms benefit from locating one near the other. By drawing on literature, different sources of economies of agglomeration can be identified. (i) Internal increasing returns to scale, which may occur in a single firm due to production cost efficiencies realized by serving large markets (Krugman 1991), (ii) External economies available to all local firms within the same sector: localization economies. (iii) External economies available to all local firms irrespective of sector and arising from urban size and density: urbanization economies. (iv) External economies available to all local firms stemming from a variety of sectors: Jacobs externalities (Jacobs 1970).
- 4.
The basic questions a theory has to respond to, have been defined by Hoover and Giarratani (1984), and by Whetten (1989). The first set of questions (Hoover and Giarratani 1984), is intended to identify factors significantly contributing to the explanation of the theory (“What?”), provide causal linkages between the factors mentioned above (“How?”), and ultimately justify the factors included and the links suggested (“Why?”). The second set of questions (Whetten 1989), is intended to provide contextual conditions on the proposition claimed (“When/Where/Who?”).
- 5.
The concept of physical concentration refers to the geographic proximity of clustered firms.
- 6.
The concept of spatial co-location refers to the all the processes of interaction enabled by locating in geographic proximity.
- 7.
Social capital is intended as the propensity of different actors (in this case clustered firms) to play cooperative solutions on the base of mutual trust, ease of cooperation and networks (Paldam 2000).
- 8.
Jacobian diversification externalities focus on productivity growth at the firm level. Jacobs claims that the process of knowledge spillover can successfully take place between diverse and complementary industries. Consistently the exchange of knowledge across diverse firms and economic agents can catalyze the experimentation and production of innovation towards leading to increasing returns and growth.
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Pronestì, G. (2019). Cluster and Smart Specialization: Different Approaches to Design Innovation Policy. In: Life Cycle of Clusters in Designing Smart Specialization Policies. SpringerBriefs in Applied Sciences and Technology. Springer, Cham. https://doi.org/10.1007/978-3-030-03780-2_2
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