Divide to conquer? Limits to the adaptability of disintegrated, flexible specialization clusters
Year: 2007
Type: article
Abstract: This article investigates the role of disintegration for the adaptability of clusters. It develops a simulation model to test when disintegrated flexible specialization clusters can be more adjustable than those with firm centred, quasi-integrated production networks. The benefits to flexible specialization are conditional on limited product complexity and greater firm numbers. Moreover, flexible specialization increases the risk of firm failure. For the viability of such clusters, strong start-up dynamics are therefore required. These results provide an explanation for the contrasting evidence on flexible specialization and adaptability in Italian districts and the Silicon Valley–Boston 128 case.
Source: Journal of Economic Geography
DOI: 10.1093/jeg/lbn012
Author: K. Press
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2764568627