The Performance of Seaport Clusters - RePub - Erasmus Universiteit ...
The Performance of Seaport Clusters - RePub - Erasmus Universiteit ...
The Performance of Seaport Clusters - RePub - Erasmus Universiteit ...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Chapter 5 – Cluster Structure 45<br />
<strong>The</strong> presence <strong>of</strong> internal competition in a cluster can be analyzed with the concentration<br />
ratio. An analysis <strong>of</strong> the MES, the regulatory regime and the level <strong>of</strong> switching costs<br />
provides insight in the effects <strong>of</strong> the absence <strong>of</strong> internal competition and opportunities to<br />
increase internal competition.<br />
5.3 Cluster barriers<br />
With the term ‘cluster barriers’ we mean barriers to enter or exit the cluster, or to start a new<br />
venture in a cluster. Thus, cluster barriers differ from ‘industry barriers’. <strong>The</strong> barriers to shift<br />
from one industry to another are in general higher than the barriers to shift from one cluster<br />
to another (while staying in the industry). Cluster barriers are location specific barriers for<br />
firms that ‘intrinsically’ want to leave, or enter the cluster or start-up in the cluster, but face<br />
cluster specific barriers that complicate entry or exit 23 .<br />
<strong>The</strong> effects <strong>of</strong> entry, start-up and exit barriers on economic performance are widely<br />
acknowledged (see Geroski, 1995). Specifically for clusters, Staber (1996) argues that start-<br />
ups and bankruptcies reflect dynamism and that dynamism improves the performance <strong>of</strong> a<br />
cluster. Entry and start up barriers reduce competitive pressure for firms in the cluster and<br />
prevent the inflow <strong>of</strong> (human and financial) capital and knowledge. <strong>The</strong>refore, both entry and<br />
start-up barriers reduce performance.<br />
5.3.1 Entry barriers<br />
Entry barriers are defined here in a narrow sense, to separate them from start-up barriers.<br />
Entry barriers are barriers for firms outside a cluster that intend to establish activities in this<br />
cluster. Given this perspective, cultural entry barriers are relevant, because these influence<br />
the accessibility <strong>of</strong> local tacit knowledge and networks. When access to both resources is<br />
difficult, entry barriers are high, because ‘new’ firms need ‘local tacit knowledge’, for<br />
instance knowledge about public organizations, characteristics <strong>of</strong> local markets and the<br />
labor market.<br />
23 Economic entry barriers such as economies <strong>of</strong> scale and ‘image’ (Geroski, 1995) are not taken<br />
into account, since these simply make entry unattractive from an economic point <strong>of</strong> view. Legal<br />
entry barriers are not taken into account because these are in general not cluster specific.