Clusters and internationalization: the role of lead firms' commitment and RIS proactivity in tackling the risk of internal fractures

Clusters and internationalization: the role of lead firms' commitment and RIS proactivity in tackling the risk of internal fractures

In this paper, we discuss the growth potential of clusters and industrial districts (CIDs) in international markets. Over the past two decades, CIDs have gone under increasing competitive pressure while markets have progressively globalized. Lead companies, either foreign or home-grown multinational...

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Bibliographic Details
Published in:European planning studies 2019-10, Vol.27 (10), p.2015-2033
Main Author: Parrilli, Mario Davide
Format: Article
Language:eng
Subjects:
Chemical industry
Clusters
Clusters and industrial districts
Commitment
Companies
Cost analysis
Crack propagation
Districts
Fractured
Fractures
global innovation networks
Global marketing
Globalization
Industrial areas
Industrial districts
Innovations
International markets
internationalization
lead firms
Local economy
Markets
Multinational corporations
New business enterprises
Proactivity
Prospects
Regional development
regional innovation systems
Resilience
Risk assessment
Small business
SMEs
Value chain
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Summary:In this paper, we discuss the growth potential of clusters and industrial districts (CIDs) in international markets. Over the past two decades, CIDs have gone under increasing competitive pressure while markets have progressively globalized. Lead companies, either foreign or home-grown multinationals, have globalized their operations while often reducing their commitment (e.g. investments) within CIDs. As a result, a number of second, third and fourth-tier suppliers disconnect from global value chains coordinated by lead companies, leaving the cluster fractured and jeopardizing local development prospects. Only a few firms in the CID cope with globalization. This situation represents a challenge that CIDs need to take on. In this paper, we inquire about the importance of two factors that may represent crucial conditions for the upgrading of CIDs within global markets. The long-term commitment of lead companies with the local economy, together with the dense interaction between the regional innovation system and the lead companies and their new global innovation network, are found to be crucial elements for the resilience of CIDs and their small firms. A few successful CIDs are considered vis-à-vis others that face higher risks of internal fracture. Relevant cases in Spain, Italy, and Costa Rica are analysed here.
ISSN:0965-4313
1469-5944