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Beyond the Knowledge-Based Theory of the Geographic Cluster

Author

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  • Alexander Cole
Abstract
The knowledge-based theory of the geographic cluster represents a major attempt to re-conceptualize clusters, in essence arguing that the localization of firms in similar and related industries stimulates learning and innovation, giving a competitive advantage to clustered firms. This paper critically examines the knowledge-based theory the cluster, arguing that it has greatly overstated the advantages of co-location to firms and misidentified the mechanisms through which learning occurs in clusters. In particular, the theory is criticized on three points: the flexible, under-specified way that it defines its object of study; the focus on firms as an explanatory variable instead of more fundamental processes of resource accumulation; and the functionalist mode of theory that employs as an explanation. Ways to address of each of these issues are discussed. In a final section I suggest that the rather static notions of learning put forward in the knowledge-based theory of the cluster be replaced by a developmental theory of regional dynamics that focuses on both learning and structural transformation.

Suggested Citation

  • Alexander Cole, 2007. "Beyond the Knowledge-Based Theory of the Geographic Cluster," Papers in Evolutionary Economic Geography (PEEG) 0708, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2007.
    • Handle: RePEc:egu:wpaper:0708
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    File URL: http://econ.geo.uu.nl/peeg/peeg0708b.pdf
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    References listed on IDEAS

    as
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    Keywords

    geographic cluster; localization; relatedness; knowledge-based theory;
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