Cause and effects of clusters and networks in new industries
PROF. DR. O.A.L.C. ATZEMA
DR. E.J. VISSER
Abstract
1. DESCRIPTION OF THE OVERALL RESEARCH PROJECT (PART OF THE URU RESEARCH PROGRAM)
Title: ‘Cause and effects of clusters and networks in new industries’
Aim: To develop a methodological framework based on conceptual and theoretical insights in the field of economic geography, so as to determine the extent, nature and effects of clustering and networking processes in newly emerging industries and regions
2. INTRODUCTION OF THE PRESENTATION/PAPER FOR THE WORKSHOP
This paper looks at the nature and effects of inter-firm linkages in the software industry in the Netherlands. We distinguish between arm’s length, quasi-hierarchical and network linkages. Networks are characterised by a form of co-operative interaction between firms, which may serve static and/or dynamic purposes. We argue that ICT is less important, the more the nature of inter-firm linkages shifts from an arm’s length or quasi-hierarchical linkage towards a network type of inter-firm interaction. This may be especially relevant in cases where the purpose of inter-firm co-operation is dynamic; learning and innovating-by-interaction.
A next step is to take into account another important process, which is often dealt with in the literature on industry clusters, i.e. geographical concentration of firms. In clusters, thus characterised by high levels of proximity (between the actors) and economic density, it may be easier and rewarding to co-operate; hence, the probability of inter-firm co-operation increases with geographical concentration, implying a decreasing role for ICT in facilitating inter-firm interactions. Again, this is all the more true in dynamic clusters. Here however, the qualities of the regional context also matters, as these should offer scope to reduce transaction costs, increase trust, and enhance the learning and innovation benefits of going through a risky process of co-operation with competitors, among other actors.
In earlier work (Atzema and Visser 2003, forthcoming), we dealt with similar questions as the above in a theoretical, conceptual and empirical way. Theoretically, we derive two processes to be driving different types of networking and clustering processes: inter-firm co-operation and geographical concentration. Conceptually, we distinguish between networks (where co-operation is the core feature of inter-firm linkages, while actors may, but need not, operate in close proximity) and clusters (where geographical concentration is the core process, while actors may, but need not, co-operate). In our empirical work on the software industry in the Netherlands, we found that geographical concentration is relevant in the Dutch software industry—although no highly specialised software regions were found. We also found that most linkages—both commercial and co-operative, develop at the national or international level. Next, it proved hard to assess the degree and type of networking and clustering processes on the basis of secondary data (census data, general surveys) only. Primary data at the level of individual firms and a higher (regional cluster) level of analysis are required to deal with the question if networking and clustering matters for emerging industries, and if so, what type of networking and clustering is taking place, and with what effects for firm-level competitiveness?
At the moment, we undertake a field survey in two Dutch regions, with a view to assessing the importance of local vs. non-local actors for software firms, the functional role of these actors (clients and suppliers, with the latter including vertical and diagonal linkages), the type of linkages, and the role of proximity and ICT regarding these interactions. The question is whether ICT substitutes, complements, modifies or motivates personal contact between managers and entrepreneurs.
3. PERSONAL DATA
Name: O.A.L.C. Atzema, Prof. Dr.
E.J. Visser, PhD
Affiliation: University Utrecht, Faculty of Geosciences, Department of Human Geography and Planning
Postal address: PO Box 80.115, 3508 TC Utrecht
Phone: 030 2531399
E-mail: o.atzema@geog.uu.nl
e.visser@geog.uu.nl
4. RELEVANT PUBLICATIONS
Atzema, O.A.L.C. (1999), Economic Dynamics in the Randstad Holland: do agglomeration economies still exist in the Netherlands? In: P. Rietveld & D. Shefer (eds.), Regional Development in an Age of Structural Change. Aldershot: Ashgate, pp. 231-254
Atzema, O.A.L.C. and J.G. Lambooy (1999), Urban Economic Evolution in the Netherlands. In: E. Wever (ed.), Cities in perspective I; economy, planning and the environment. Assen: Van Gorcum, pp. 11-28
Atzema, O.A.L.C. and E. Wever (1999), De Nederlandse industrie; vernieuwing, verwevenheid en spreiding. Assen: Van Gorcum (vijfde herziene druk)
Atzema, O.A.L.C. and J.G. Lambooy (2000), Agglomeration economies and migration of firms. In: J. Van Dijk and P.H. Pellenbarg (eds.), Demography of firms. Groningen: NGS. pp. 123-140.
Atzema, O.A.L.C. (2001), Location and local networks of ICT firms in the Netherlands. Tijdschrift voor Economische en Sociale Geografie, vol. 92, no. 3, pp. 369-378
Atzema, O.A.L.C., J.G. Lambooy, T. Van Rietbergen and E. Wever (2002), Ruimtelijke Economische Dynamiek; kijk op bedrijfslocatie en regionale ontwikkeling. Bussum: Coutinho. (tweede herziene druk)
Van Oort, F. and O.A.L.C. Atzema (2002), Agglomeration economies and the location of new information and communication: ICT firms in the Netherlands. In: W. Hulsink (ed.), Regional clusters in ICT. Trends in Communication, nr. 10. pp. 35-64
Atzema, O.A.L.C. and J.G. Lambooy (2002), Het toegangstijdperk staat of valt met coordinatie. Stedebouw & Ruimtelijke Ordening, 83, nr. 5, pp. 18-21
Van Geffen, P. and O.A.L.C. Atzema (2002), Global sourcing van industriele productie. Stedebouw & Ruimtelijke Ordening, 83, nr. 5, pp. 26-27
Atzema, O. and E.J. Visser (2003), Regional clustering in the Dutch ICT sector, with special reference to the software industry. Revised version of a paper presented at the European RSA conference, August 2002, Dortmund. Forthcoming in Atzema, Rietveld & Shefer
Visser, E.J. (1996), Local Sources of Competitiveness: Spatial Clustering and Organisational Dynamics in Small-Scale Clothing in Lima, Peru. PhD dissertation, Amsterdam: Tinbergen Institute and University of Amsterdam
Visser, E.J. (1999), A comparative analysis of clustered and dispersed firms in the small-scale clothing industry in Lima. World Development 27, no. 9., pp. 1553-1570
Visser, E.J. (2000), De complementariteit van clusters en netwerken. ESB dossier, 85, no. 4238, D35
Visser, E.J. (2000), Structural Adjustment and Cluster Advantages: A Case from Peru. In: Arni Sverrisson and Meine Pieter van Dijk, Local Economies in Turmoil: The Effects of Deregulation and Globalization, MacMillan Press ltd, Great Britain
E.J. Visser (2001), Economie als Vernieuwingswetenschap. ESB, 86, no. 4333, p. 870-871
Hoek van, R. en E.J. Visser (2001), Postponement in Western Europe: Laggards and Leaders. TESG, vol. 92, no. 3
Visser, E.J. and J.G. Lambooy (2003), Logistics, transaction costs and the spatial-functional reconfiguration of supply chains. Revised version of a paper presented at the European RSA conference, August 2001, Zagreb. Submitted to Geografische Zeitschrift
Visser, E.J. and M. Lanzendorf (2003), Mobility and accessibility effects of b2c e-commerce: an integrated perspective. Revised version of a paper presented at the Framing Land Use seminar, Utrecht, 15-17 April, 2003. Submitted to TESG
Visser, E.J. and R. Boschma (2003), Learning in districts: novelty and lock-in in a regional context. Revised version of a paper presented at the Euram conference on Innovative Research in Management, May 9-11, 2002, Stockholm, Sweden
De Langen, P. and E.J. Visser (2003), The decline of the lower Mississippi port cluster: governance matters. Paper presented at the AAG conference, New Orleans, 4-8 March 2003