Regional Development: Clusters and Districts

Philip McCann

in The Oxford Handbook of Entrepreneurship

Published in print May 2008 | ISBN: 9780199546992
Published online September 2009 | e-ISBN: 9780191577383 | DOI:

Series: Oxford Handbooks in Business and Management C

Regional Development: Clusters and Districts

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This article first makes some clarifications regarding the terminology we use and assumptions we make, simply for expositional purposes. It then outlines the basic tenets of the concept of agglomeration and industrial districts, highlighting the mechanisms by which the spatial grouping of activities and the generation of localized economies of scale may be related. It reviews the various hypotheses which are evident in the literature concerning the relationship between the spatial organization of industrial activity and the spatial patterns of innovation. It explains the current trends in thought about these relationships, pointing out the recent popularity of the concept of a cluster. It then investigates the various notions of clusters and industrial districts from a transactions costs perspective, and provides an assessment of the insights generated from these cluster arguments.

Keywords: regional development; clusters and districts; agglomeration; spatial grouping; industrial activity; industrial districts

Article.  8262 words. 

Subjects: Entrepreneurship ; Business Strategy

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