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Cambridge Journal of Economics Advance Access originally published online on January 10, 2005
Cambridge Journal of Economics 2005 29(4):497-515; doi:10.1093/cje/bei018
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© The Author 2005. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved.

What drives innovativeness in industrial clusters? Transcending the debate

Marjolein C. J. Caniëls and Henny A. Romijn*

* Open University of the Netherlands (OUNL) and Eindhoven University of Technology (TUE), respectively

Address for correspondence: Marjolein C. J. Caniëls, Open University of the Netherlands (OUNL), Faculty of Management Sciences (MW), P.O. Box 2960, 6401 DL Heerlen, the Netherlands; email marjolein.caniels{at}ou.nl.

The paper throws new light on the debate about the role played by local knowledge spillovers (LKS) as a driver of regional innovative activity. It transcends the regional level of analysis that has been commonly adopted in the literature so far, using insights from the evolutionary theory of the firm. This makes it possible to derive a typology of mechanisms through which regional agglomeration may stimulate learning and innovation at the firm level. When this typology is brought to bear on the extant approaches in the debate, the contrasting viewpoints can be reconciled to some extent. The main conclusion is that little theoretical ground for the LKS debate remains.

Key Words: Localised knowledge spillovers (LKS) • Evolutionary theory • Firm-level learning • Regions • Clusters

JEL classifications: O18, O31, O32, R58

Manuscript received March 10, 2003; final version received December 4, 2003.


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