Industrial and Corporate Change, Volume 10, Number 4, pp. 921-943
© 2001 Oxford University Press
Towards a Knowledge-based Theory of the Geographical Cluster
Center for Economic and Business Research and Department of Industrial Economics and Strategy, Copenhagen Business School, Howitzvej 60, DK-2000 Frederiksberg C, Denmark. maskell{at}cbs.dk
Abstract
Co-located firms within related industries enhance the ability to create knowledge by variation and a deepened division of labour. The interdependent development between economic activities and local institutions make the cluster attractive to some industries and hostile to others. The very reasons why cognitive distance might be small within the cluster tend to make cognitive distance great between clusters and make interfirm co-operation across bodies of knowledge more costly. The additional value created when clustering may justify the additional cost.
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