Enterprise- and Industry-Level Drivers of Cluster Evolution and Their Outcomes for Clusters from Developed and Less-Developed Countries

Abstract

This article aims to discuss the international strategies of lead companies and the modularization of production networks as drivers of cluster evolution in developed countries, and to formulate propositions regarding the impact of those drivers on relationships with clusters in less-developed countries, based on literature reviews. Three streams of literature were combined, namely, that on (1) the role of lead companies in the development of industrial agglomerations, (2) the life cycle and evolution of clusters, founded on evolutionary economic geography and (3) the possibilities of upgrading by suppliers from less-developed countries. The article contributes by proposing a conceptual model that covers internal cluster evolution and the evolution of inter-cluster relationships globally to inform business and policy choices. Moreover, the research gap is addressed to study how the cluster dynamics in developed countries affect the upgrading opportunities for clusters in less-developed countries. The theoretical input consists in using the constructs of knowledge exploration and exploitation as mechanisms that determine cluster development prospects. Cluster development perspectives are shown as determined by those clusters' capacity to jointly pursue knowledge exploration and exploitation activities.

Acknowledgments

I would like to thank Robert Hassink, Dirk Fornahl and Max-Peter Menzel for giving me an opportunity to contribute to this special issue. I am also grateful to two anonymous reviewers for their insightful comments.

Notes

1. In this paper the notions of “developed” and “developing” or “less–developed” countries do not reflect any specific classification of country development as provided by the international institutions such as OECD or World Bank. The antinomy of “developed” versus “developing” or “less-developed country” denotes an uneven level of economy advancement between trading partners. In the empirical literature applied in this study clusters from “developing” countries encompass such examples as newly developed economies of Czechia, developing economy of Romania, emerging economies of India or China or developing/moderately developed economy of Poland.