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Regional Studies Association (RSA) European Conference 2014

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Submitted for track: B. Clusters and Smart Specialisation

Dynamics of Cluster Development: Lessons from Energy Valley Cluster A. Manickam, K. van Berkel

Abstract

Clusters development takes place in an increasingly changing and complex context where global and local developments are interconnected. Various regional and innovation studies recognize the need for place-based studies to include the larger context in which clusters and regions are found. Interest and discourse on the value of complexity approaches to cluster studies is increasing, with the aim to gain deeper understanding of processes taking place in complex cluster development. This discourse was initiated by Martin & Sunley (2003) and explored extensively by Cooke (2012) in his study of ‘complex adaptive

innovation systems’. Work in this area of research is limited and empirical study could add to understanding the complexity of cluster development.

The purpose of the study was to recognize plausible systemic relations in the various aspects that contribute to cluster development taking place in an

increasingly complex world. The research intended to develop a framework that could support understanding dynamics of cluster development in their complex contexts. The study drew on literature from complexity theories, evolutionary economic theories and mapped this onto regional and innovation systems theories to support strategy development in policy.

The research studied the Dutch energy cluster that is undergoing both major energy and social transitions and therefore presented a case study of a complex cluster. The study carried out 25 interviews of stakeholders that spanned local energy co-operations, local, regional, national and EU level policymakers, academia and research centres, major gas corporations and small and medium-sized businesses in the energy cluster and civil organizations. The energy clusters covered 4 provinces and this too was included in the interview scope. The case study was qualitative and embraced a multi-perspective, multi-level systems approach inherent to complex adaptive systems’ perspectives. The paper will demonstrate the framework that has been developed with illustrations from Energy Valley cluster and some of the issues that the work raises.

The framework has four areas that capture respectively the initial cluster condition, cluster context, cluster dynamics and cluster performance. The

framework expanded these four cluster aspects in turn to include the following features of systems and cluster studies, namely, path dependency, container, stakeholders, fitness to landscape, attractor, significant differences, transforming interactions and emerging patterns.

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Through the exploratory study, the initial framework has been modified and an attempt has been made to show the inter-relations between these various aspects that contribute to cluster development. The research focused on a single case for the empirical study but was supported by literature and policy evidence and inputs from experts to strengthen the proposed framework and insights that have emerged from the study on energy clusters and cluster development in general.

The EU’s call for regions to identify and develop Smart Specialization strategies for regions and the support for clusters as innovative spaces on which regional strategies could be built on, demand instruments that could support

policymakers’ need to understand cluster development and their workings. The insights and conceptual framework presented in this paper offer policymakers systemic insights into cluster emergence. This, in turn could strengthen

developing insightful smart specialization strategies. Insights into interactions and emerging patterns of existing clusters offer opportunities to explore possible scenarios for its possible development.

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