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The Performance of Seaport Clusters - RePub - Erasmus Universiteit ...

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Chapter 4 – Variables <strong>of</strong> Cluster <strong>Performance</strong> 35<br />

Table 3: Stylized facts on cluster structure and performance<br />

School Stylized facts with regard to cluster structure<br />

Diamond School Internal competition enhances cluster performance.<br />

New economic<br />

geography<br />

<strong>The</strong> presence <strong>of</strong> a ‘critical demand’ enhances cluster performance.<br />

Presence <strong>of</strong> agglomeration economies (presence <strong>of</strong> suppliers and a labor market<br />

and knowledge spillovers) enhances cluster performance.<br />

Presence <strong>of</strong> agglomeration diseconomies (congestion, land rents) hampers cluster<br />

performance.<br />

Population Ecology Heterogeneity <strong>of</strong> cluster population enhances performance.<br />

Industrial District<br />

School<br />

Spatial entry, start-up and exit barriers influence cluster performance.<br />

Small firms that cooperate in local production systems are competitive vis-à-vis<br />

large multinationals.<br />

We discuss these stylized facts more in detail in the next chapter, where the influence <strong>of</strong> the<br />

structure <strong>of</strong> a cluster on its performance is center stage.<br />

4.2.3 Cluster governance<br />

Cluster governance can be studied with the use <strong>of</strong> institutional economic theories. When<br />

analyzing cluster governance, attention should be paid to learning (Montgomery, 1995),<br />

since learning is necessary to change existing routines and capabilities, and institutions (see<br />

Amin and Thrift, 1992). <strong>The</strong> term institution is rather broad and includes both formal and<br />

informal ‘rules <strong>of</strong> the game’. In change processes institutions play an important role, both on<br />

the firm level (see Beckert, 1999) and for aggregated levels such as clusters, networks and<br />

industries (see Scott, 1988). Table 4 shows the ‘stylized facts’ <strong>of</strong> the four schools with<br />

regard to the influence <strong>of</strong> cluster governance on performance. <strong>The</strong>se stylized facts are<br />

explored in some more detail in chapter 6.

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