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

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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.

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