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

5 CLUSTER STRUCTURE
In this chapter we discuss the influence of four variables related to the structure of a cluster
on the performance of a cluster. The importance of the variables is not discussed, since this
is cluster specific. Figure 8 shows the four cluster structure variables, derived from the four
schools discussed in the preceding chapter (see Table 5 in chapter 4).
Figure 8: Four variables related to the cluster structure
Cluster structure
Agglomeration effects
Internal competition
Cluster barriers
Heterogeneity
Cluster
performance
5.1 Agglomeration economies
Cluster
governance
The study of agglomeration economies started with Marshall who argued that the existence
of ‘external economies’ leads to the concentration of activities. Marshall defines external
economies as ‘economies arising from an increase in the scale of production, dependent on
the general development of the industry’ (Marshall, 1890 p. 266). Marshall further argues
that ‘external economies can often be secured by the concentration of many small
businesses of a similar character in particular localities’ (Marshall, 1890 p. 266).
The term ‘agglomeration economies’ (see Asheim, 1994) is used for all external economies
that foster geographical concentration. A widely accepted distinction divides agglomeration