By Thomas Brenner

The major technique taken during this ebook is that every one neighborhood fiscal clusters have anything in universal - particular case-studies are therefore placed into wider viewpoint in a masterly learn that would be of willing curiosity to either economists and geographers.

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Extra resources for Local Industrial Clusters: Existence, Emergence & Evolution (Studies in Global Competition, V. 20)

Sample text

This means that the higher the value of e, the higher is the number of firms that is expected to exist. As noted above, the exogenous conditions result from the local circumstances that are not influenced by the firm population—which will be called attractiveness of the location here—and the global situation. Let us neglect for a moment all endogenous influences and dynamics. Then, the exogenous conditions would determine the size of the firm population ƒ. The resulting firm population is denoted by .

Be found in Maggioni 2002 and Wolter 2003). The model above provides a good basis for developing a theory of the evolution of local industrial clusters. In the context of this book there are three reasons for adopting such a model. First, different stages in the evolution of local industrial clusters can be identified. In each of these stages different mechanisms and processes matter. Knowledge about these mechanisms allows the various influences to be structured according to the time at which they are relevant and according to the processes they cause.

Reformulating the THEOREM 1: Let ρƒ>aƒƒ, ρƒ·ρc>αƒc·αcƒ and ρƒ·ρs>αƒs·αsƒ. Then, two stable states can only exist if at least one of the three local mechanisms is selfaugmenting, meaning that either aƒƒ>1, satisfied. >1 or >1 is Theorem 1 follows from Lemmas 2 and 3. It states a first condition for the existence of local industrial clusters: at least one local symbiotic interaction has to exist that is more sluggish in its effect at the beginning but stronger for higher values of ƒ(t) than a linear effect.

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